Sales target simulator

A revenue target cannot be managed, it can only be decomposed: revenue = meetings × closing rate × average deal size. Meetings and closing rate are worked on every week; revenue is merely their consequence at month end.

To hit the same target, you can open more opportunities, close better, or sell bigger. The first lever costs prospecting volume. The other two are won inside the meetings themselves.

Going from a 20% to a 25% closing rate cuts the opportunities you need by a fifth, without one more prospecting call. It is the only lever that requires no extra volume: only playing each meeting better.

Start from the field, not the spreadsheet: historical closing rate, observed average deal size and real meeting capacity per week. A target whose breakdown requires 40 weekly meetings per rep is not ambitious, it is wrong.

Divide the revenue target by the average deal size to get the number of deals, then divide by the closing rate to get the opportunities to open. Example: a €50,000 target at €5,000 average deal and 20% closing gives 10 deals, so 50 opportunities, about 12 meetings per week.

Take the last 3 to 6 months: deals signed divided by opportunities opened over the period. Below about ten opportunities, the average is meaningless; start from a conservative 15-20% assumption and adjust monthly.

Both, at different levels: the team target sets the course and funds the plan, individual targets create accountability. The classic trap is an individual target disconnected from each rep's real meeting capacity.