Business

How to Accurately Forecast Your Sales and Set Quotas

If you are responsible for the sales in your company, then you have a very important task. Sales are the lifeblood of any company. Without a good number of sales coming in, you cannot produce profits to invest in other areas. You also can’t forecast what your cash flow will be. So make sure that you are positioning your company for success by setting accurate sales forecasts and sales quotas with the proven methods below:

Look at Your Trailing 12 

Your sales from the last year will tell you a lot about where your numbers should be. They give you an average as a general ballpark. Even more important, they tell you exactly what you made this time last year. Therefore, at a minimum, this should be your sales forecast and target for your team.

Make It Exciting 

Salespeople are not going to get up every day and simply hit their quota without some motivation. You need to take responsibility in exciting them about their potential future earnings and what you expect of them. After all, people live up or down to our expectations of them. So get your sales team ramped up with big sales quotas that are just barely out of reach but doable with a lot of effort. Don’t forget to attach bonuses and spiffs to these goals, or your team will lose steam as the month goes on.

Keep it Realistic 

As someone who wants to grow your company, you might get pumped up about hitting huge numbers. True, it helps to aim big. However, you want to keep your forecasts within a reasonable range. Don’t tell ownership that you will hit a huge sales quota if it is simply not going to happen. This only puts you in a negative situation when you sit down them at the end of the month.

Use Tools to Keep Track 

If you set a goal but don’t keep track of it, it is not going to happen. You need the right tools to log your daily, weekly, and monthly sales numbers. This way you can see if your forecasts were accurate at the end of the day.

When it comes to sales, you need to have the right game plan. Of course you must have a solid sales system in place before anything else. However, from there, you need to set realistic and exciting sales quotas and sales projections. Then, you and other members of management can better plan for the future to dominate your market.