👋Hey there,

It’s budget season.

And next year’s targets are being set to support the budget.

Some of you are changing targets faster than a pit crew changes car tires.

Believe us, you are not alone.

It’s a normal part of the budget process.

And there are things you can do to minimize the number of tire changes.

Tune in to hear about our own target-setting endeavors.

When Setting Targets, Think of Incentives

Sales Targets become KPIs.

🔥TIP: Read this to learn what KPIs (and metrics) are.

And KPIs become the benchmark for incentives (aka commissions and bonuses).

Make sure your targets line up with your business goals.

And that your various departments' targets connect so that they all work together.

Show Notes

* 01:30 - Sales targets motivate salespeople to sell (no kidding)

* 02:10 - Balance stretch goals with reasonable ones, avoid demotivation ⚠️

* 02:55 - Get grounded in your sales history

* 03:30 - Keep Sales (aka Revenue) simple—volume, mix, and price🔥

* 04:10 - PLEASE PLEASE PLEASE, talk to your Sales Teams for their input

* 05:30 - Listen to Sales Rep calls for rapid learning about your selling motion

* 06:14 - Understand what performance story your CFO and CEO want to tell

* 07:33 - AVOID presenting targets that NOONE recognizes or demotivates

* 08:23 - Leverage mind maps to visualize your thinking and get organized🧠

* 10:15 - The key thing about FP&A is we’re always evaluating our performance

* 11:00 - Be an advocate for your Sales Team

* 12:15 - Sales Target setting is NEVER perfect, keep learning and improving

Conclusion: Keep Learning and Advocating

Your budget process and Sales Target-setting won’t be perfect.

* You’ll deal with new people

* May have new company goals

* OR you may be in an entirely new company

Lead with learning.

By talking to your Sales Team and leadership.

And leverage those Excel and numbers skills to help them connect their selling goals to the financial scoreboard.

You got this 💪

Disclaimer: This content is not investment advice or financial advice. The views expressed and stories told are our own. We may be investors in the companies discussed. Do your due diligence when considering applying what you learn.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit fpandhey.substack.com