Having a target, the RIGHT target, is critical to business growth. As sales people, we often struggle with knowing how many deals to close in order to make the numbers that the business requires from us. I will introduce you to how I manage sales people and their capabilities in order to meet the target number they require. It is very difficult as a salesperson when you are in the mud, to figure out how to get out of it. It's much easier when you take this approach at a macro view.

1. Setting Your Target On
Next Year's Sales Quota
MarcoGiunta.com

2. Introduction to the
formula
How To achieve next
year quota
Forecasting Business
Growth
Examples

3. Having a target, the
RIGHT target, is critical
OK ... Don't get
scared
Here is the formula

4. Meeting Your Quota if G <1 then
Performance You are below 1.5
Formula Index
1
A= How many deals have you closed in the last 24 months?
=G .5
B= How many deals is the Company average in the last 24 months?
# of
# of
must win # must win
deals to
C=
K=H/I
What is your quota for next year?
=H
D= What is the average size of a deal in your company?
Close Win Size of sales
Average
Ratio Pipeline needed
deal Size
E= How many deals have you chased, in the last 24 months?
=I K*D=L
F= How many have you closed? Performance
Index Average Adjusted
deal Size Number Of
Size of sales
deals to chase
Pipeline needed
(L/G)/C=X

5. First How are you
performing?
A=how many Deals You can also test
have you closed? this with Dollars
B=How about the rest Maybe your deals
of the company? are bigger in dollar
A/B and above average
if the answer is under
1 then you are below
average

6. How many deals must
you win This
uses a
conservative
C= What is your quota Variable
for next year?
D= What is the
average size of a deal So If
in your company?
your Quota is $20M
C/D= will give you & avg deal is $1.1 you
the Must Win Deals need to close 19 deal

7. What is you close win
Ratio
E= How many deals if you
have you chased, in
the last 24 months? chased 30
opportunities
F= How many have
you closed?
and won 10 then
your close win
E/F= I your Close Win ratio is 33%
Ration

8. How many deals must
you chase?
Close Win
Ratio
# deals to
Ok Stay with me.. chase
If your Win ratio is
K=H/I
33% and you must Average # of
win 19 deals - that deal Size must win
means you need to
chase 57
opportunities
K*D=L
# deals to
Size of sales
chase
Pipeline needed

9. How big of a sales
pipeline do you need?
OK you need to find 57
opportunities... Right? Average
deal Size
do if you company
average deal size is $1.1M
you need a sales pipeline K*D=L
of $63m # deals to
Size of sales
chase
Pipeline needed
Trust me if you carry The
Right Sales Pipeline your
will make your sales
numbers!

10. Adjust to your prior
year performance..
So if your Quota is $20m Performance
Average
Index
deal Size
and you need $63m and
performance .9 you need to (L/G)/C=X
$70m sales pipeline to makeup
for the performance Index
so if you have $1.1m avg deal Adjusted
Size of sales Number Of
you need find 63 opportunities Pipeline needed deals to chase

11. Conclusion
If you want read the original article -http://
www.marcogiunta.com/setting-your-target-on-next-
years-sales-quota/
Or if you need help understanding the article
reach out to me
Marco Giunta @marcogiunta or
call me (201) 305 3305