Do you ever feel like you’re busy but just not moving forward? Sometimes the key to business success is to go back to the basics. In this blog post, we breakdown what a sales plan actually is and why it’s so important. Recent podcast guest Catherine Erdly, founder of the Resilient Retail Club, explains why a solid sales plan is crucial for long-term business success and how it helps generate sustainable profit.
Why You Need a Sales Plan
When I ask people about their sales plan, the most common thing I hear is ‘my goal is just to sell as much as I can.’ While this enthusiasm is admirable, without a concrete plan, how do you know when you’ve achieved your goal? It’s like trying to hit a target with a bow and arrow while blindfolded—nearly impossible.
A sales plan offers two crucial benefits: clear goals and better business control. Specific sales targets enable you to recognise and celebrate achievements, as opposed to feeling like you’re stuck in place.
When asking yourself ‘how much stock should I have?’, it comes back to what your sales are projected to be. A sales plan acts as a foundation for your business, informing stock plans, cash flow, expenditure, and helping you plan effectively for quiet or busy periods.
Overcoming Common Objections
Some business owners still hesitate in creating sales plans, fearing they’ll tempt fate or feel disappointed. Instead, think of it as a way to celebrate your success and reduce the risk of being overwhelmed. A well-informed sales plan also means you can pay yourself confidently.
Setting Realistic Sales Targets
A big worry about sales plans is the fear of getting it wrong. However, drawing from my experience in large retail, “the purpose of a sales plan is actually not to be right, because you’re never going to get it right.” It’s about making educated guesses that you can refine over time.
For new businesses, base your targets on reasonable assumptions such as: expected website traffic, average industry conversion rates (typically around 2% for e-commerce), predicted average transaction value and anticipated number of purchases per customer.
“When you are first starting out, you should still set yourself a sales plan. You’re going to have to be working on some basic assumptions…and over time you refine it and you get better and better at it.”
For established businesses, you have the power of historical data to inform your projections. It’s important to review year-on-year growth patterns, analyse seasonality trends and consider any planned marketing activities or new product launches based on past successes.
Using Your Sales Plan Effectively
Now the key to success isn’t just creating a plan—it’s using it actively throughout the year. Set time aside each month to compare your actual sales against targets. This helps you recognise trends, celebrate wins, and identify opportunities for future improvement.
While it’s important to track monthly performance, avoid making reactive changes based on one month’s results as fluctuations are natural. Focus on reviewing and adjusting projections on a quarterly basis, to account for broader trends and seasonal variations.
When Things Don’t Go to Plan
If sales fall short, don’t panic because a sales plan can help troubleshoot. First, identify the root cause: could it be a traffic problem? A conversion issue? Product-related? Use this information to adjust future forecasts if necessary and create action plans to address any identified issues—ensuring to review and adjust related plans too (stock, cash flow etc.).
“Knowledge is power…You’re always going to be in a stronger position if you do know and you look at these things. It can feel very confronting, and sometimes people just say, ‘I don’t want to know.’ But you’re always going to be in a stronger position if you do know and you look at these things because there’s so often a way out of trouble if you just make a few adjustments.”
Getting Started
The most important thing is to begin. Don’t get caught up in making your plan perfect: just put target numbers in and then go from there. As you learn more about your business, and the closer you get to that sales target, you will be able to shape it into a more realistic number. Remember, your sales plan is a living document that will evolve with your business.
Every successful business, from startups to multi-million-pound enterprises, has one thing in common: a sales plan. It’s this framework that gives you the confidence and strategy to accomplish your business goals.
About Catherine Erdly
Catherine Erdly is a small business consultant and independent retail expert, who founded The Resilient Retail Club, helping product businesses grow sales and profit. To learn more about The Resilient Retail Club, have a look at their website. Alternatively, head to Facebook, Instagram, LinkedIn or TikTok for more expert tips. Catherine also previously appeared on Bring Your Product Idea to Life in this podcast episode, Preparing To Sell Your Products At Christmas.