Whether it involves sales, marketing, or other areas of your company’s growth; setting goals is the first (and one of the most important) steps for organizational success. When it comes to sales goals, in particular, it doesn’t matter if your company is in the janitorial industry, restaurant business, or a Fortune 500 company. Setting smart sales goals will lay the foundation for your success and growth.
But how do you know which goals to set? Which goals are “smart,” and which will drive your crazy trying to reach? Bidslot is here to help.
Why is Setting Sales Goals Important?
Setting measurable, quantitative goals (even if you don’t reach each and every single one of them) is what helps your track your company’s growth, areas of success, and even the places you may need to put a bit of extra attention and effort towards.
What Kind of Goals Should You be Setting?
You don’t solely want to focus on revenue-related goals Success, after all, isn’t just determined by dollar signs. A the end of the day, whether or not your company can stay afloat, grow, and succeed does depend on its revenue and profit, you’ll also want to focus on smaller various goals along the way, which will act as stepping stones towards your larger goals (including increased revenue).
You want to set a number of different goals to meet daily, weekly, monthly, quarterly, and annually. You also want transparency with each set of goals throughout your company. If your sales representatives’ only goals, for example, are meeting their daily quota; you’ll likely wind up with sales reps who aren’t that invested (or interested) in the overall goals your company.
How Do You Set Your Sales Goals?
Want to set smart sales goals? Think smart!
S-M-A-R-T = Specific, Measurable, Achievable, Realistic, Time-based.
Specific: You don’t want your goals to be too general, as this will leave much room for interpretation and, in turn, less-than-successful outcomes. For example, rather than setting a sales goal to make 200 sales each year, break that goal down into smaller, more quickly attainable goals like having sales reps engage at least 5 prospects each day, then turning at least 1 of those prospects into a lead.
Measurable: If you can’t measure your success, you won’t really know how you’re doing, and when it comes to sales, you don’t want it to be a guessing game. Track your metrics and data to see how you’re doing over short periods of time as well as over longer periods of time (years). The more data you have, the more information will makes itself obvious. You’ll notice patterns and be able to tell exactly where you are succeeding and where you are struggling.
Achievable: While becoming a millionaire or Fortune 500 company aren’t unattainable goals, they may not be achievable within a realistic timeline. Instead, set smaller goals you can achieve in shorter time. This not only helps encourage your company’s sales representatives, sales managers, and other employees; but by achieving your “stepping stone” goals, you’ll be able to make alterations as needed along the way too. (You can’t just set goals and then run full speed towards them. They often need to get updated along the way.)
Realistic: As mentioned above, dreaming about becoming rich and successful is great, but the goals you set on your road to success need to me smaller and more realistic.Setting short-term realistic goals will also help prevent your employees from getting burned out or discouraged.
Time-based: All of your sales goals need timelines attached to them. People tend to work well when their goals are structured within deadlines (realistic deadlines, of course). This will also help you keep track of and measure your data better too.
Overall, when setting sales goals, you want to start from the bottom and work your way up. Consider what your long-term end goal is, then work backwards and determine where you need to start to get there. Create small, measurable stepping stone goals that you can reach within realistic timelines and before you know it, you’ll be hitting your bigger sales goals!