I know some entrepreneurs like to sit down at the beginning of the month (or quarter) and set sales goals for themselves.
Others still set sales targets – how much money they’re aiming to make by the end of the month – or quarter.
Once they know the amount of their sales goal or target, they make a plan as to how they’ll meet it, including what they’d offer, and how many they’d need to sell at what price.
There’s something about that process of setting sales goals that leaves me feeling pressured. And I know all too well what can come when you’re under pressure to make sales.
The idea of a sales target is more appealing to me. It seems more forgiving if I happen to “miss.”
But even setting a target doesn’t quite feel right to me. That’s because, like many purpose-driven entrepreneurs, I’m not particularly motivated by money.
When it’s not about the money
Having said that, like you – I do run a business – I need to make sales and bring in a certain amount of money every month. In other words, I make a point of knowing my numbers – I keep track of what’s coming in and what’s going out.
I admit it’s a delicate balance. But for me, it’s a pretty simple equation:
Expenses + salary = how much I’d want to make in a month
My salary number is how much I want to contribute to our household income. It stays about the same each month.
Expenses are a bit trickier because my recurring monthly business costs are quite low. But I do have certain months where my expenses are slightly higher. And in July, when I pay my license fee to be a Certified Ambassador for the Alignment Grid™, it’s noticeably higher.
So I definitely have to keep an eye on those fluctuations. I found it helpful to calculate my average monthly expenses, by dividing my total expenses for the year by 12.
There are a few other things I keep in mind around expenses, like profit and taxes. You can learn all about the system I use by reading Mike Michalowicz ‘s book, Profit First (not an affiliate link.)
Do you set monthly sales goals or sales targets? Or neither?
For me, rather than setting an income goal or target each month, I prefer to have the awareness in my mind. Instead, I focus my attention on fulfilling my purpose, and making progress on my business priorities for the year.
And I have faith the the money will follow.
What about you?
Do you set income goals for yourself each month?
Or are you someone who prefers choosing an income target?
Does your approach work for you?
Or do you find it stresses you out and leads you to feel like you have to push to make sales?
Write to me and let me know – [email protected]
WHAT’S REALLY GOING ON WHEN YOU’RE STRUGGLING WITH SALES
It’s not what you think.