- This article will tell you everything you need to know about your first year business goals.
- Why is Goal Planning Crucial in Business?
- 5 Types of Small Business Goals
- Easy Methods for Setting Business Goals
- Tips for Setting Effective Business Goals
- 5 Mistakes to Avoid When Setting Business Goals
This article will tell you everything you need to know about your first year business goals.
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Why is Goal Planning Crucial in Business?
Did you know that the majority of start-up businesses fail within their first 5 years? According to experts, a large reason behind this is the fact that many business owners fail to plan ahead.
Without adequate planning, it’s easy to lose direction and become overwhelmed by the day-to-day running of the company. That’s why setting goals is extremely important.
Here, we’ll look at some of the reasons why goal planning is crucial in business.
Business Goals are the building blocks to your success
Small business goals help you to propel the business forward, helping it to succeed. No matter which part of the business you’re looking to improve, the right goals can really help you to take your business to the next level.
Without business goals, you won’t know which parts of the business to focus on in order to get the results you’re looking for. So, you’ll likely end up stuck in a rut, not really achieving anything of significance unless you have realistic, measurable goals.
They enable you to monitor your progress
In order to succeed in business as a work at home mom, it’s crucial to monitor your progress.
Which parts of the business are doing well, and which could use a little improvement?
Unless you have a clear idea of where your efforts should be focused, it’s easy to waste your time, money and energy on the wrong tasks. So, setting business goals and then reviewing them, helps you to see how far the business has come and the key areas which require additional focus.
Think of your marketing strategy as a good example here. When you’re spending money trying to attract new customers, you need to know you’re not wasting your efforts. So, setting business goals and then reviewing them will help you to see which marketing strategies are working, and which ones you should tweak or let go of completely.
Goals help to boost motivation
Remember that excitement and motivation you felt when you first started the business? It’s what pushed you to launch the company and get it off to a great start. However, it’s natural for that motivation and initial excitement to fade after a few months. That’s where goals can prove extremely useful.
Setting business goals that can be easily achieved helps to keep your motivation intact. As you tick off the goals, you’ll feel a renewed motivation to push forward and achieve the next one. Without motivation, it’s practically impossible to succeed in business.
Keeping your employees happy
Another reason that business goals are important, is because they help to keep employees happy. While unrealistic goals can damage employee morale and motivation, effective ones can help to increase productivity and communication.
It also provides clarity, ensuring your employees know exactly what they are working towards. You’ll also find setting goals helps to ensure you’re hiring the right employees. If you know where the business is going, you’ll find it easier to hire the right talent to help you get there.
Holding you accountable
Small business goals also help to hold you accountable. You could have a vague goal in your head that you are working towards, but unless you write it down and monitor it, you’re unlikely to reach it.
When left to our own devices, we’re often not as productive or as motivated as we could be. So, having clear goals helps to keep our focus and mind on the tasks required to push the business forward.
These are just some of the reasons why setting goals in business is crucial to your success. The thing to remember is that goal setting isn’t just a one-off thing. You need to continue to set business goals once you’ve achieved those initial ones. That is how you ensure your business doesn’t just keep running, but that it thrives.
Finding a hard time learning how to set your business goals because the kids won’t stay quiet? Read this article on how to keep your kids busy so you can set your goals!
5 Types of Small Business Goals
Now that you know the importance of goals in business, it’s time to learn more about the different types. If you truly want to succeed, you can’t just set any old goal for the business; it has to be relevant, realistic, and in line with what you’re hoping to achieve.
So, what different types of goals can you set in business? Below, we’ll look at 5 of the most common types of small business goals to consider.
1. Income/Profit goals
By far one of the most common goals all businesses have is to increase their profits. There are a lot of different financial goals you can set for your company, and each of them focuses on ultimately boosting your bottom line.
While the most common income-based business, goals focus on earning a set amount in a set period of time, you could also use them to cut costs. Some great examples of alternative income/profit goals include shopping around for cheaper suppliers, investing in automated software, and outsourcing tasks to reduce in-house costs.
2. Customer service goals
No business can survive without excellent customer service. Due to the sheer amount of competition businesses now face, it’s crucial to ensure you are providing excellent customer service. If you aren’t, your customers won’t think twice about heading over to the competition.
So, you could set numerous business goals to help improve your customer service. Making a commitment to improve response times, to add different types of communication options, or to provide compensation of some kind to unhappy customers, are all great examples of customer service goals you could work towards.
3. Product/Service goals
In order to be successful, you’re going to need to make sure your products and services are foolproof. It’s not just your existing products you’ll want to focus on either.
Product development is a key aspect of a successful business. If you want to keep your customers coming back, you’re going to need to give them something to come back for. That means, consistently working on new products and services your customers are sure to love and need.
Some examples of product and service goals include improving existing products, employing innovative employees to develop new products, and expanding your range of services.
4. Productivity and Motivation goals
If you want to boost every aspect of your business, productivity and motivation goals can help. These can relate to both yourself and your employees.
The more productive you and your workers are, the more successful the business is going to be. There are a lot of ways to boost productivity and motivation in the workplace. For example, you might want to set business goals to improve the working environment. The nicer the work environment, the more productive and happier your employees are going to be.
Providing exclusive perks, enhancing the work environment, and offering further training to your employees are all great examples of productivity and motivation goals.
5. Expansion goals
Once your business is doing relatively well, you can start to focus on expansion goals. That is, figuring out ways to push the business forward and grow either nationally, or maybe even internationally.
These types of business goals typically require the most work. While technology has made it easier to expand, there are still a lot of challenges you’ll need to overcome. Some examples of business expansion goals include researching a new target market, investing in new business premises, and introducing international shipping.
As you can see, there are many types of small business goals you can focus on. If you want to help your business to really succeed, you’re going to need to focus on several types of goals. However, it’s important to start out with the most important types of goals first so you don’t get too overwhelmed.
Here are some more business goals you can set!
Easy Methods for Setting Business Goals
Looking for the best ways to set business goals? If you’re keen to get started, but you’re not sure how to go about it, there are a few easy methods you can try out.
Remember, what works for one business may not necessarily work for another. So, you may need to try out a few different methods before you find the one which works for you.
Here, you’ll discover some easy methods for setting business goals you might want to try out.
SMART business goals
There are a lot of different goal-setting methods out there, but one which has proven the most successful is the SMART method. This stands for:
Every business goal you set should follow the above rules. All business goals should be specific and measurable. They also need to be attainable, relevant, and have a specific time frame for completion. If you follow this method, you’re likely to see excellent results.
Get your FREE SMART Templates here!
Breaking down your business goals
An easy way to figure out which goals to focus on in business is to break them down. If you’re struggling to come up with specific goals, then this is definitely the method you’ll want to try.
Start by writing down your main business goals. These don’t need to be specific and will in fact more than likely be pretty vague. Then, once you have your overall business goals, it’s time to break them down.
Think about what you’ll need to do in order to achieve your overall business goals. Write down the smaller steps required in order to meet your overall business goals. The more you break them down, the easier they will be to achieve.
Reviewing your business goals
When it comes time to set new business goals, it’s a good idea to review your old ones. What worked and what didn’t work? Did you complete the business goals you set? If not, work out why not.
By reviewing your old business goals, you can learn from anything that cropped up to prevent you from achieving them. This will enhance your chance of success with the new business goals you set yourself.
Don’t forget too – the business goals you set now should also be easily reviewable. All business goals are a work in progress and they often need to be tweaked in order to prove effective.
Physically write your business goals down
With so much technology available at our fingertips, it’s easy to set business goals digitally. It may seem more convenient to type your goals out on the computer, but did you know you’ll have more chance of success by physically writing the business goals down?
It’s a good idea to invest in a physical goal planner. If you look at the most successful business leaders in the world, you’ll find the majority use a physical goal planner to help them stay organized and connected to their business goals.
We like to use Freshbooks to keep track of our business goals!
Make sure you feel positively about the business goals you set
When you’re setting your business goals, you’re going to need to make sure you have a positive outlook about them. That means you feel they are achievable, and they will help your business to succeed.
The more passionate you are about the business goals you set, the more likely you’ll be to achieve them. Don’t make the mistake of setting a goal that involves something you hate doing. If you do, you’ll find it easy to put it off and ultimately fail to achieve the goal.
There are a lot of methods you can use when setting goals for your business. However, the ones above are definitely proven to have the most success; especially when you’re just getting started. It’s a good idea to try out a few different methods in order to see which one works better for you.
Tips for Setting Effective Business Goals
Your work doesn’t stop once you’ve figured out which goal-setting methods are best for your business. Before coming up with specific business goals to focus on, there’s a few tips you’ll want to follow.
You’ll need to make sure you are setting effective business goals which are both easy to achieve and easy to review. To give you a little inspiration, here you’ll discover some of the top tips for setting effective business goals you can follow.
Review the current state of the business
The purpose of small business goals is to help improve the business. Whether that means drawing in new profits, attracting new customers, or improving its efficiency – every goal you set is designed to enhance your success.
So, if you want to really give your business a boost, you’re going to need to know which areas need the most improvement. Start by analyzing the current state of the business and think of all of the things you’d like to change or achieve.
Once you know which areas need the most improvement, you can ensure your goals are better focused.
Ask your employees for their insight
If you’re struggling to come up with ideas of how you can improve your business, you may find it useful to ask your employees. If you’re worried they may not give you an honest answer, you can do it anonymously via surveys.
Your employees will be able to offer insights into what they feel needs to change. After all, happy employees are more productive and loyal ones! Seeing their responses may give you a better idea of the type of goals you need to be setting.
Be 100% clear about the goal
You already know that the business goals you set should be specific and measurable. However, it can’t be stressed enough that the goal needs to be 100% clear. Anybody who is associated with helping you to achieve the goal, should have a good understanding of what they’re working towards.
If a goal isn’t clear, you’re going to find it pretty tough to achieve it.
Make sure they are realistic
Again, this is something we mentioned previously, but it’s one of the biggest mistakes business owners make when setting business goals. So, it can’t be stressed enough how important it is to make sure your goals are realistic.
This means, making sure they can be achieved easily and in a timely manner. It’s all well and good setting yourself a target to boost profits by 60% within 3 months, but is this a goal you can actually complete? If not, you’re going to end up feeling frustrated and you’ll start to lose your motivation.
Determine who will be responsible for each goal
Once you’ve set your business goals, it’s important to make sure you’re choosing the right people to help you achieve them. While some goals will be specifically for you as the business owner, others will require help from your employees.
Assigning the right people to the right tasks and ensuring they have everything they need to work towards the goals, is crucial to their success.
Understand what resources you will need
Sometimes, in order to achieve the goals you set, you’re going to need a few resources to help. It could be finances, software, training, or additional staff. Figure out exactly what it is you will need to achieve each goal on your list.
The more prepared you are, the more likely you’ll be to achieve your business goals.
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5 Mistakes to Avoid When Setting Business Goals
When you set the right goals for your business, it can really boost your success. However, did you know there are a lot of mistakes you can make when setting business goals?
If you set the wrong ones, it can actually damage the business, rather than help it. So, if you want to ensure your small business goals are a success, below you’ll discover 5 mistakes to avoid when setting them.
- Not making them specific
One of the biggest mistakes you can make when setting business goals is making them too vague. It’s crucial you make the goals as specific as possible if you want to make sure they are achievable.
A good example of a vague business goal is where you state you want to increase your profits. While this is certainly a great goal to have, it doesn’t exactly give you much to work with, does it? How are you going to increase your profits, how much do you want to increase them by and what steps can you take to do it? These are just some of the things you need to consider to break your goals down.
The more specific your goals are, the more likely you’ll be to achieve them.
2. Setting unrealistic business goals
Just as detrimental to your progress, is setting business goals that are unrealistic. You may have lots of great visions of where you want the business to go. However, you need to make sure they are realistic and easy to achieve.
You can make the mistake of both setting an unrealistic type of goal, as well as an unrealistic time frame for completion. The trouble with unrealistic goals is that they can really damage productivity and motivation. If you don’t achieve them, you’ll become frustrated and it could put you off setting more.
- Prioritizing the wrong things
It’s a common mistake for businesses to set any old goal, without really thinking about whether they need it. The key to effective goal setting is to prioritize your goals.
Think about the areas of the business which need the most work or improvement. While you may want to expand overseas, for example, is the business ready?
You’ll need to make sure your company at home is performing well before you even consider expanding overseas. So, before planning to expand, set goals to improve your existing business so that when it does come time to expand, you can focus your efforts on that, rather than having to deal with issues at home too.
- Failing to review them
Setting business goals is just one part of the process. However, you also need to make sure you review them frequently. Without reviewing your business goals, you’ll have no idea whether or not your efforts are paying off.
It’s important to regularly review and track the progress of your goals to determine whether any changes need to be made.
- Not being prepared for failure
Finally, you need to understand that just because you’ve set yourself business goals, it doesn’t mean you’ll achieve them. In fact, failure is pretty much guaranteed at some point.
It’s through your failures that you learn how to succeed. So, set your business goals and be as realistic and specific as you can, but don’t assume everything will run like clockwork. Be prepared for failure and then be ready to come up with an alternative goal if something does go wrong.
These are just 5 mistakes you can make when setting business goals. By learning from these mistakes, you’ll have a much higher chance of succeeding and ensuring you actually fulfill the goals that you set.
Well, we hope you learned everything you need to know about setting business goals! Just always remember its okay to fail you just have to set a better achievable goal next time. Do you have any business goals to share with us? Tell us in the comments! or you can tell us in our group here!