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Use these three simple tricks to create realistic sales targets every time

by , 06 October 2014
When it comes to budgets, your financial goals are vital. These goals give you something to work towards and, therefore, give your budget a purpose.

But when it comes to your sales targets, it's all too easy to create unrealistic goals. This often backfires on you by giving you the sense that your company is failing. That, in turn, decreases company moral and affects productivity.

Before you know it, those unrealistic sales targets created a downward spiral of financial disaster.

But you can prevent that from happening to your business with these three simple tricks...


Create realistic sales targets using these three tricks

Trick 1: Look at your past sales
If your company normally experiences high sales in December but a sharp decrease in January and February, there's no point in having high sales targets for January and February.
Past sales are the best indicator of future sales and sales patterns. These patterns will help you set realistic targets based on your previous sales.
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Trick 2: Analyse market conditions

Take a careful look at the state of the market. If there isn't a high demand for your market at the moment, you won't achieve a sharp growth spurt in your sales. This means there's no point in setting your sales targets particularly high.
Trick 3: Study your competitors' growth
Your competitors will give you the best indication of the kind of sales targets you should have. They can show you the kind of growth a similar company has in the current economy at a particular time of year. Chances are, if their company is in a slump, your company will experience something similar.
Use these three tricks to base your sales targets on relevant information so you can ensure they're realistic and achievable. 
PS. To help you reach your sales targets you need an effective budget. Check out the Master Budget Series to help you create one. 

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