Step 6. Setting SMART sales goals

The place I think most managers get it wrong is by setting goals on what they hope will happen. Goals must be realistic so the Sales Manager and Salespeople really believe they have a chance of achieving them. Some key points about sales goals: 1. Sales goals are not just a once-a-year thing. Yes, you should set annual goals. You can also set them quarterly, monthly, weekly, and even daily. Once you get your formula down, it’s the same process. 2. This is about setting sales goals. There are ways to set goals for other job functions, but sales goals are unique to salespeople and need to be treated that way. Sales goals can be measured in the amount sold, commissions earned, new customers gained, etc. Measure whatever gets you to your desired results. The key is to measure. These are the SMART parts you need for your sales goals: 1. Specific: Know what you want. I mean, know exactly what you want. You must have a precisely defined target/goal, or you’ll be flailing away hoping you’ll hit it. 2. Measurable: You need to know your numbers. If you want a Salesperson to make $10,000 in commissions in a month, you need to work backward. Here's the questions you and they need to answer to get to that $10,000: A. Based on your close rate, how many Opportunities are needed and of what value? B. How many appointments, demos, etc., will become Opportunities? C. How many qualified Prospects are needed for that many Opportunities? D. How many calls, emails and outreach activities will deliver that many qualified Prospects? Here is a sales goals worksheet you can download. I'd encourage you to give that to your salespeople as well. https://docs.google.com/spreadsheets/d/1Dr11PEFw3PVhJg5OE1TzwFU8ENTzk0uB/edit?usp=sharing&ouid=116062764212801437369&rtpof=true&sd=true 3. Achievable: People need to believe, from the beginning, they can achieve a sales goal. If they don’t, they probably won’t build up enough inertia to get going and make it happen. 4. Realistic: To think you can, for example, double your sales without adding Salespeople, marketing, new products or services, or something else, is setting yourself up for failure. Dream big, but be realistic. 5. Time-Based: Put a "complete-by date" on the goal. This is usually dependent on the length of your average sales cycle. It could be 30, 60, 90, or more days. One other thing: if your product’s average sales cycle is 90 days, it’s too late to set goals for this month. You need to think ahead! This video gives you a simple system to set sales goals that lead to booked meetings, clean pipeline, and closed revenue. You’ll see how to move from “hit a number” to clear inputs, weekly actions, and scorecards your team can follow. Good goals drive behavior. Bad goals create sandbagging and noise. This course shows how founders and CEOs shift from founder-led selling to fractional-style sales management with targets that tie to pipeline stages, activity, conversion rates, and forecast accuracy. You’ll learn how to set KPIs, monthly and weekly checkpoints, and coaching rhythms that hold the team to standards without you on every call. Use the worksheet to select one revenue target, three input metrics, and one quality metric. Build a simple dashboard. Run a weekly review with deal inspection and next steps. Tie comp to the plan so reps focus on the work that moves deals. Frequently Asked Questions (FAQs) 1. How are sales goals different from other business goals? Sales goals are unique because they are directly measurable in terms of results that move the company forward. Unlike functions like accounting or finance, sales goals are built around Key Performance Indicators (KPIs) that specifically "move the needle" toward your company's vision. 2. What is the best method for calculating sales goals? The most effective way is to work backwards. Start with the desired outcome (like a commission target or revenue goal) and determine how many deals are needed to get there. From there, calculate how many demos, meetings, and outbound calls or emails are required to generate those opportunities. 3. Why is "Achievable" such a critical part of a SMART goal? If a salesperson doesn't believe their sales goals are achievable, the odds of them succeeding drop significantly. Sales goals must be fair and based on realistic expectations of what can be done, not just on what you hope will happen. 4. What happens if I don't put sales goals and accountabilities in writing? If accountabilities aren't documented, it’s not the salesperson’s fault if they fail—it’s yours. Without a written record, everyone is just guessing. Putting everything in writing upfront ensures there are no surprises regarding performance expectations. 5. How should underperformance be handled? With clear, written accountabilities, a salesperson should never be surprised if they are let go. If they aren't meeting their spelled-out goals, the next step is usually a performance improvement plan or, if necessary, dismissal from the company.