Setting business goals is one of the most important keys to business success because, more often than not, successful business owners are goal driven, they know what they want to achieve and where they are going.
Setting goals in business is important because:
- It prevents aimless drifting and becoming bored with your business. That is one of the worst things that can happen and your business can deteriorate rapidly. I’ve seen that so many times with clients whose businesses are in decline.
- It’s so much easier to focus on what you need to do on a day-to-day basis if you are working to achieve a specific task or aim. If, for example, you need to achieve a certain turnover or profit to reach your goal – perhaps to sell your business for a minimum sum – then it’s easy to work out how many new customers you need or how many prospects you need to see to turn into customers to generate more business.
- Fashion and customer demand ebbs and flows along with product life cycles reflecting the ever-increasing pace of change. Sometimes it’s necessary to move on before it’s too late.
- Setting goals makes business planning so much easier as everything should fall into place. Many business owners think that business planning is a waste of time but not if you have specific business goals, because then you need to plan in detail to achieve your goals, setting milestones in the intervening period.
The chances of successful business goal setting will be greatly enhanced if you follow these goal setting rules:
- Exciting. It will greatly increase the chances of you achieving your goals if it’s something that excites you. This could be getting out of the rat race or securing your financial future, perhaps after years of worrying about money.
- Specifically defined. It is necessary to be specific about what you want to achieve. For example, it’s no good just saying you want to increase turnover, you need to specify the exact increased turnover you need to achieve.
- Measurable. Your business goals need to be measurable. A good example would be increasing customer satisfaction. That alone is not possible to measure, but what would be measurable would be stemming the number of customers lost or keeping track of new customers referred by existing customers.
- Achievable but not too easy. It’s no good making your business goals too easy to achieve as you need to push yourself and your team. However, on the other side of the coin, it’s no good making your goals too hard as eventually, you will just give up.
- Over a specific time-period. Your business goals need to be set over a defined time- period, otherwise there will be no urgency and things will drift.
- Lastly, if you need to, make yourself accountable to someone else who will keep you on track. It’s far easier if you have business partners but if not, use your accountant or maybe your business coach.
If you would like help with your business goal setting get in touch. We have a number of tools available which makes the whole process easy. Another year is nearly over, what have you acheived?