The ultimate guide to goal setting for business
Goal setting is essential to success in both business and in life. By setting goals they are more likely to come to fruition. Writing your goals down shows you are serious about achieving them and creates space in your head for the implementation of your goals. Setting goals can be great for your motivation, focus and to help you clarify what is important to you and your business.
Read on for our ultimate guide to goal setting for your small business.
Goals don’t have to be financial
I know, I know this sounds strange coming from an accountant but many business goals aren’t financial. You might want to increase the amount of time you spend with your family, take an extra day off each month, create more social good, help an employee to thrive, or simply make a person smile each day. A goal doesn’t have to be financial to be worthwhile and important to you.
Goals should be specific
When creating goals or targets it is important that they are specific. Go into detail about what you hope to achieve and what the goal means. Be sure to include information such as who, when, where, what and how, this information can help you to implement and achieve your goal.
Goals should be measurable
Taking the time to set out a measurable result for your goal is essential. It allows you to go back and check where you were and where you are now. To make a goal measurable include details such as
An increase (or decrease) of a specific number. Remember there are plenty of ways to measure you can measure in terms of percentages, hours, dollars, or even simple numbers. To ensure your goal is measurable ask yourself “How will I know I have achieved this goal?”.
Goals should be achievable
A great goal should be achievable, meaning it should be realistic for you and your business. I use this step as kind of an action plan for the goal, how will I achieve it? Do I need extra help? Is this goal realistic with my own skills or will I need a hand to make it a reality. Remember help is available from experts in marketing, accounting or counselling to help you to achieve even the most lofty of goals.
Goals should be relevant and realistic
This is one of my favourite parts about goals, they should be relevant to you, your family and your business. Business and life aren’t cookie cutters and what works for me won’t necessarily work for you. For a goal to relevant to you it’s important to ask yourself what is important. For some people it is all about the financial goal, getting enough money to pay the family bills or buy the “thing” for themselves or their family. For others a goal about quality time, time off or ensuring me time is far more relevant.
You should also ensure that your goal is realistic. I regularly hear “I want to earn $X every month” and then see clients “do whatever it takes” to achieve that goal, ending up falling in a heap due to ill or health or disappointment. It’s important when setting goals to consider what is realistic for you. Making an four times your income is a great long term goal but in the short term is likely to end in disaster.
Goals should be time bound
When setting goals it is important to set a start and end date. This gives you the chance to reflect on your goal, did you achieve it? Why or why not? What did you do well and how could you improve. For some people goals may be weekly eg. I will invoice $x this week. For others a goal might span an entire month, year or even decade. Having a time bound goal will help you to be focused on your goal and how your day to day tasks are helping you to achieve your goal or making your goal more difficult to achieve.
Write your goals down
Writing your goals down is probably the most underrated goal setting tip there is. Writing your goals down allows you to get the goal out of your head, leaving space for implementation and planning. It allows you to REALLY think about the goal. Having a written goal will help you to nut out the details, ensure the goal is SMART and commit to the goal. It doesn’t have to be formal, or on the computer, a scrap piece of paper, your phone’s notes app or a white board all work just as well.
Create a stretch goal
While it is important to be realistic, a single stretch goal can be an excellent motivator. Think about your wildest dreams, your perfect life or your perfect day and then create a specific, measurable goal of this wildest dream. These kind of goals can help you to understand your motivators and what you REALLY want from your business and life. Hint: its often not I want to win the lotto and be a billionaire but if it is you can take steps towards this by at least entering the lottery.
Goals can change
Goals are yours and therefore should be flexible. A goal from last year may no longer be relevant to you. Evaluating your goals and reassessing them for relevance regularly will keep you motivated and focused on what is important to you.
Examples of goals
I will get my cost of sales down by 0.5% by February. I will do this by working more efficiently, negotiating deals with suppliers and reviewing staffing requirements.
I will get 5 extra clients within the next three months.
I will finish work on time, at 5pm every day this week.
I will complete one random act of kindness every week this month.
I will grow my team by two customer service representatives by July next year.
I will write one chapter of my book each month for the next 2 years and self publish by November 2022.
I will make $20,000 profit this month.
By following these top tips for business goal setting you are taking the first key steps to building your individual and business success. But remember, goals aren’t set and forget! Keep them close by to allow you to reassess, and appreciate just how far you have come.
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Any advice in this blog is general in nature and is intended for information purposes only. For personalised advice please contact your accountant.