Setting Realistic Sales Targets

What is a realistic Sales Target?

Is it a target that is so lacking in ambition that your three legged cat could attain it?

Or a target so safe that not even a further postponement of Nigeria's 2015 elections could hamper it?

Don't misunderstand my use of the word 'realistic'. Realistic is not another word for 'safe haven'. There must always be aggressive ambition and drive when setting targets.

There are four necessary components to setting Sales / Revenue targets.

1. The revenue target should be ambitious and aggressive enough to warrant all involved to have to come out of their comfort zone.

2. Yes, the revenue target should be ambitious and aggressive; but also attainable - in the eyes of the business owners, managers, and sales executives / reps.

3. Targets must be specific to both teams and individuals - in terms of figures as well as types of sales / revenue.

4. Targets should be scientifically planned / set - using Previous Results, Present Circumstances, Current Economic Climate, Staff Strength and Capabilities, and Competitors' Performance / Results / Market Share.