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How To Goal-Set


By Allan Ferguson

Goal-setting is an often misunderstood aspect of business management and the sooner you understand the systems and strategies you need to have in place, the better your chances are of fulfilling your ambition.

I’m going to explain how through careful planning you can give yourself the best opportunity of two of the most common goals of increasing sales and business growth.

Let’s first look into how to best set your sales target goals.

If you’ve read one of my previous blogs you’ll understand the importance of knowing your numbers as you should never operate your business based on inaccurate information.

I often hear about businesses setting monthly sales goals as they believe this is the ideal timeframe for measuring how successful sales have been.

For over a decade now I’ve been a believer in instead setting a daily sales goal, and I’ll explain why.

Let’s say your average month-excluding weekends- has 20 workdays and your monthly target is $80,000, therefore meaning your daily goal is $4,000.

I prefer to have $4,000 on a scoreboard daily as I can then set sales targets because I know what our job averages are, such as I know the average hot water call generates “$X” and the average plumbing call generates “$Y” and so on.

This helps you organise your daily allocation of jobs so all of your eggs aren’t in one basket and you’re able to keep track of the types of calls and sale conversions you’re making.

Now you’re organising your job allocation and understanding conversions, there might be days where you far exceed your daily $4,000 target whilst other days might be quieter.

But because you’re monitoring your work, you’re able to better understand trends and can be proactive, such as increasing your marketing spend or looking at bringing in another technician.

You’re now in a far better position to not just reach your overall target but exceed it too.

Can you see how this is better business practice than setting a monthly sales target and hoping and praying you hit it?

Because you now have the confidence and strategies in place through your daily goal-setting, let’s use the same principle for increasing business growth.

Through knowing your numbers it actually doesn’t take too much to look 12 months in advance.

For this you will need to have a formula based on the number of daily jobs you attend and what the average dollar sale is.

For example, I might be averaging 200 daily jobs with my business so I know what the average dollar sale is for this week, which then gives me a solid indication for a prediction for next week and so on.

You can then look at your technicians and begin to understand how much each member on average generates for your business.

Then you’ll need to look up the number of work days and the types of calls you’re receiving.

You now will know your numbers and because you’ll have a systemic marketing plan in place to compliment your goals, you can start looking at growing the number of calls you receive.

If you want to increase annual business growth by 50-60%, it might sound aggressive but it’s only a growth of 5% monthly.

Remember, you now know what daily sales you can expect, you know how much one technician on average generates for you and you’ve got smaller and more manageable goals in place.

You will have months where you don’t hit your targets but you’ll also have months where you far exceed your targets.

It’s a never-ending process and it does give you the best chance possible of reaching your overall goals.

Quite simply the more your business breaks down its overall goals into smaller ones the more likely you are to achieve them.

Allan Ferguson is the CEO of Service Professionals Australia.

To get exclusive insight into marketing your business and learn leaderships secrets from Australia’s premier leadership coach Peter Cox, download episode two of Allan’s podcast Pipeline to Profitability now

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