Why the first half of January can forecast whether you hit your annual sales target

It's easy to overlook the importance of early wins when your team is still getting back from the holiday break but doing so can cost you dearly down the line. The reason can be seen in this simple example: if you are in a business with recurring sales, a deal closed in January will bring you 12 times as much value as a sale in December. This seems obvious, but when put into percentages, the contrast becomes staggering. That January sale represents over 15% of your annual sales. Recurring sales closed in each month of the first quarter represent 42% of your annual sales target and by April, you have hit almost 54% of your sales! 

This concept is known as the Rule of 78, which is often associated with shady structures used by lenders to ensure they collected as much interest as possible, even when loans were paid off. However, the same concept applies to recurring sales, but there is nothing shady about helping your sales team hit their numbers. In fact, recognizing this reality is the mark of a well-oiled operation where the entire team recognizes the urgency of executing on a plan.

Recognizing the importance of early wins and taking steps to capitalize on them can be the difference between hitting or missing annual sales targets. It's crucial to prioritize and invest in these early wins, even if it means working extra hard to close deals during the first quarter of the year. This will pay off in the long run as it will put the team on a solid footing for achieving their annual sales target.