A Goal Without a Plan is Just a Wish

“A goal without a plan is just a wish” - Antoine de Saint-Exupéry

In this blog we will look at Sales Budgeting.

At this time of year our attention as business owners turns to the year ahead.

What are our goals? What turnover would we like to achieve? How can we grow from the previous year?

In order to set achievable goals for the year ahead it is important to first understand where you are as a business currently. It is important to list (a simple excel spreadsheet will do this) all your customers from the previous 12 months (you can go further if you like) and note:

• How much each customer has spent with you

• How much profit each customer has created

• How many times the customer has ordered

This information will give a very clear idea of where your business is coming from, which ones are generating the most profit and which ones order on a regular basis. Once you have this you can list them in turnover order and set a target for each one for the year ahead.

My tip on this would be to add around 10% to each customer as a good growth target. After you have done this for all your customers I would also add a target for new business and then you have your goal set for the year ahead.

Having a goal for the year in terms of turnover and profit is critical to running any business.

Firstly, is it enough? - are you going to be generating enough money to make your business profitable and cover costs? If not, then you need to increase your new business target or look at reducing your costs. If you are, great work.

Now for the important step.

Having a goal is just one thing but now you need to achieve it.

In order to make this simpler you can use a Customer Tracker (An example is on the shared area). Each month, you need to list turnover and profit from each trading customer. Also, you should add any new ones to this as you go.

This information will tell you which customers are on track (and if indeed your business is on track) but which customers are not. These are the most important ones and the customers that need to be contacted quickly to see why. A simple email or phone call can often remind the customer that you are there and will often lead to business.

Doing this each month will create opportunities for you and make the most of your current customer base. You will also see exactly where you are and with this small level of control you will feel good as you understand your numbers and where your business is at any time.