Sales Target, an essential prospect that has some deep value and impact on so many professionals and organizations. The people, who are engaging themselves for day to night workload and pressure, expect to have all that for which they have worked. Some of them get the real success while some fail to achieve it.
Whether you are working with big organizations, serving individual clients or doing business as an entrepreneur, the main point you are trying and every other professional person is trying to achieve, is the high sales target you set off to accomplish when you start your business.
Now days you have often seen that those sales target goals either not being properly set or organizations have failed to achieve them. There can be some many causes behind this failure but whatever the reason is, it always leads to the instability for any organization.
Based on the information from INC. magazine and Dun – Bradstreet, round about 33 percent out of every 100 percent of all new businesses; has got to experience the failure within the first six months, 50 percent get fail within the first two years of actions and 75 percent ended to reach failure within their first three years. Strange but true!
Even sales target is hard to achieve when it comes to product launches and service provision. When you offer the so awaited product in market, you expect to get the desired results and profits from the audience, especially revenue. However, things turn into some nightmares when you go down side in making desirable profits. So here, we are going to discuss the main causes that results why your business fails to achieve sales target!
The foremost noticeable feature is when you do not have the perfect business plan to execute. You must be known of the old saying “when you don’t have any idea on which direction you are going, how you will reach there?”
This clearly means if a business person does nothave the exact well-cleared plan to start his business with, how he is going to create a strong position in the market. Before developing a business plan, most businesspersons just open their doors and expect to get maximum success. However, this is not what actually happens, instead their overall sales growth gets affected badly which results in failing to attain the sales target set.
Secondly, you have seen in many cases that newer businesses and organizations reach to the point of shutting down their operations with in the first few months due to underfunding. This happens either because the owner runs out of money or you do not have strong investors.
To run a strong and competitive business all you have to do is to have huge funds which will gear up your starting cost as well as act as a source to sustain your business for few initial months, resulting into high sales and profits in future operations. Moreover, by taking consideration of your yearly financial statements and forecasting you should decide how you are going to take your business in future in order to reach the sales target.
Another reason, which covers the scope of failed sales target, is the lack of organizational objectives and goals. When you have the perfect business plan and loads of money to invest in order to start your business and keep on expecting higher revenue generation without setting your prior goals and objectives, then your strategy in so not good enough to meet your expectations. Because a business plan with not having the clear goals and objectives to be meet is just not capable to get the possible and competitive sales profit rate in the market.
During your planning process, you should create well-developed goals and objectives related to your marketing and organizational strategies. This can be done by breaking down them into quarters and put a check to see whether your operations are fulfilling them. Business goals can include profit objectives, revenue, number of new clients, marketing activities, new services and products launched and last but not the least sales target.
Linked to the above reason discuss, business owners experience the major failure in their business processes mainly because of the incorrect measurement of their set goals and management objectives. This point arises when the owner starts to get immersed in initial benefits and forget the long-term goals which he needed to take care of more to progress his business. Therefore,it is fairly important to not just set up the goals but also measure and evaluate them time to time. This all will help him to check the room for improvements and advancement in the business.
Next on the list of reasons for a business organization failure is not paying full attention on its cash flows. During the early stages of your business, the foremost element is your cash flows. Cash flows are your all of the money that you take in every month by subtracting your monthly disbursements. These days it is common for many businesses to possess negative cash flow statements for the initial months of operations, which results to less chances of achieving the profits.
When businesses does not possess an ability to target there core customers and clearly understand there aimed industry, then those organizations are surely going towards the deeper end where they will not get any chance to challenge there poor position.
Business is all about your target audience and customers means you have to take into consideration about who are your exact customer niches, to whom you are going to offer your new product or service. Likewise getting and understanding your particular industry is also a chief aspect to hit your sales target and grab it.
Lastly, most businesses move towards the direction of low profits and failures when they are not able estimate the importance of market competition. Every business organization should have to be more strength full in order to have the best competitive advantage other its industry competitors. Many companies lead to get failed sales targets because of the inability to secure all these factors and reasons, which they need more, and more of them.