Before you can hit a target, you need a target worth hitting

Happy New Year! Let’s make this year the best one yet.

This is the first note in a short series on goal setting. You might have already set your goals for the new year—in which case, congratulations. Or you might have started them but not completed them yet, which is great, too. Or maybe you can’t really finish your goals and targets until you get your individual contribution-to-the-team numbers…also good.

Wherever you are, you are here—which is the best place to be.

Before you can hit a target, you need a target worth hitting. To create that, it takes some preparation and a willingness to work backward from where you want—and need—to be, based on your financial reality.

I encourage you to think about goal setting on a couple of levels by asking yourself:

How much revenue do I need to generate?

• Goal: The revenue sales target you want to hit

• Basement: The revenue sales target you need to hit

Let’s start with the basement.To calculate that number, work backward from what you need to bring home each month. What is your break-even—the amount that covers your fixed and variable expenses? If you already have a budget, you likely know this number.

This represents survival, not abundance—but it’s the place to start. For example, if your monthly expenses total $5,000, then $5,000 is what you need at the very least to cover your “nut” for the month.

Your Homework (This Matters):

This is your action step.Do the math and establish your monthly break-even number. Write it down. Be honest. Be specific.

From there, we’ll move to the next step—what you need to write in sales to support that number. Enjoy the math exercise. It’s one of the most important ones you’ll do all year.