Since it is the start of the spring and our business and sales goals are in place and progressing nicdely, we can now begin to
working on the next level of them… Boy it’s great starting out with a
clear and concise plan, right? What… you don’t have a plan? You mean
all of the goals you set for your first quarter and first few months
this year were met purely by chance? You say you didn't meet all of your
goals for last year? Say it isn’t so!
Why is it that we start out with the best of intentions on January 1st, and by March 1st we are back to our old routine? The routine of procrastination, excuse making and just accepting mediocrity.
There are several reasons.
1. We’re lazy. Yep it often is as simple as that. It is just easier to justify all of the reasons why we can’t do it instead of finding reasons why we can! Some people are happy living with mediocrity. It’s OK, you can admit it.
2. Here’s one of my very favorites: “I’m too busy!” And who isn’t? Typically when we hear I’m “too busy” you can replace that with “I have no real idea how to prioritize.” We fill our schedule with things that are not activities directly related to identifying business but the other “stuff” that is often easier to do. (There’s a reason why they call it busy work).
3. We set goals monetarily instead of through our activities and behaviors. When we set a goal by a dollar amount to be achieved, and not daily, weekly, and monthly activities, we set ourselves up for failure. Why? Because we can’t control who buys, but we can control what activities we are involved in.
I’d like to address number 3. Often the other 2 get caught up in the misinterpretation of dollars (or sales) being goals and they are purely the RESULT of your goal. When we set dollar volume goals only, we often don’t reach them and give up quickly. How can you set a goal of something you cannot control? You can’t. That’s called a wish. Wishes are wonderful for your children on Christmas but no way to run a business.
Now am I saying you should ignore dollar amounts for yourself and your sales people? No. But these are not goals, they are merely the result you expect from the goals. But this is a good place to begin.
Let’s say that you would like the results to be $120,000 for each representative for 2011. (By the way, past earnings and beliefs of your sales organization has an awful lot to do with being able to accomplish this. We can talk about that in a later article)
First of all, you will need to identify what this means monthly. In this case, about $10,000.00.
Second, what is an average sale for you? If it were $2500.00 then you would need 4 sales per month.
Third, How many prospects do you need to meet with to close one deal? This will take some review of your past closing ratio. *Remember, a prospect is someone with whom you have identified a need, that they have a budget and you have identified their process for decision-making. Let’s say it’s 3. Then to meet your goal you will need to meet with 12 prospects per month.
Fourth, and this will take some estimating, how many suspects do you need to meet with to get to 1 qualified prospect? * A suspect is someone you could be meeting with for a variety of reasons; exchanging referrals, a past client, a strategic partner, someone who has expressed interest in your business etc. Let’s say it’s 5. Then your monthly goal is to meet with 60 suspects. Now you have set a goal for yourself of approximately 15 per week.
The most important thing here is to track these numbers for a total of 30-60-90 days. This will not only tell you if these numbers are correct but where are most of your referrals of business coming from.
Too complicated? Then go back to the old theory, “if you get in front of enough people eventually some will close”. This is exactly how you fall into the, “I am too busy” category… And how’s that workin’ for ya?
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