👋Hey there,
It’s budget season.
And next year’s targets are being set to support the budget.
Some of you are changing targets faster than a pit crew changes car tires.
Believe us, you are not alone.
It’s a normal part of the budget process.
And there are things you can do to minimize the number of tire changes.
Tune in to hear about our own target-setting endeavors.
Listen on
When Setting Targets, Think of Incentives
Sales Targets become KPIs.
🔥TIP: Read this to learn what KPIs (and metrics) are.
And KPIs become the benchmark for incentives (aka commissions and bonuses).
“Show me the incentives, and I’ll show you the outcome.”
Charlie Munger
Make sure your targets line up with your business goals.
And that your various departments' targets connect so that they all work together.
Show Notes
01:30 - Sales targets motivate salespeople to sell (no kidding)
02:10 - Balance stretch goals with reasonable ones, avoid demotivation ⚠️
02:55 - Get grounded in your sales history
03:30 - Keep Sales (aka Revenue) simple—volume, mix, and price🔥
04:10 - PLEASE PLEASE PLEASE, talk to your Sales Teams for their input
05:30 - Listen to Sales Rep calls for rapid learning about your selling motion
06:14 - Understand what performance story your CFO and CEO want to tell
07:33 - AVOID presenting targets that NOONE recognizes or demotivates
08:23 - Leverage mind maps to visualize your thinking and get organized🧠
10:15 - The key thing about FP&A is we’re always evaluating our performance
11:00 - Be an advocate for your Sales Team
12:15 - Sales Target setting is NEVER perfect, keep learning and improving
Types of Sales Targets
What you target can depend on your industry and company goals.
Here are some examples that relate to your Sales Team:
Customer Counts
Annual Recurring Revenue (ARR)
Upsell
Retention (aka inverse of churn)—learn more here 🔥
Whatever you choose make sure:
✅ Your fellow employees and key stockholders understand them
✅ And that your company can measure them
🔥TIP: How to present QTD Sales performance.
Conclusion: Keep Learning and Advocating
Your budget process and Sales Target-setting won’t be perfect.
You’ll deal with new people
May have new company goals
OR you may be in an entirely new company
Lead with learning.
By talking to your Sales Team and leadership.
And leverage those Excel and numbers skills to help them connect their selling goals to the financial scoreboard.
You got this 💪
What Sales Target-setting stories do you have?
Share your experiences by replying to this. We read and reply to every email.
Now go have fun making an impact on your business and your career!
See you next week 👊
Cheers,
Drew & Yarty
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Disclaimer: This content is not investment advice or financial advice. The views expressed and stories told are our own. We may be investors in the companies discussed. Do your due diligence when considering applying what you learn.
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