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Business Goals

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No one starts a business thinking that the business is going to fail but unfortunately research shows that most businesses fold within 5 years of inception. Having a sound business plan is crucial to success in any business. However, do not underestimate the importance of business goal setting. Developing goals for your business can be the key to your success in your business venture.

Setting goals in business is essential to your success because they determine your final destination. Goals give you a sense of direction and shape what your business will become. They also help you establish a time-line for your action plan. Goals give you a target to aim therefore all efforts will be concentrated on achieving the outcome. Without a time-line there is no sense of urgency and a lot of time and effort will be wasted on unimportant activities.

It only makes sense that anyone who has influence in the business should be involved in the goal setting process. The goal setting process should also be documented. By identifying the exact steps that you need to take, goals become more concrete. Writing goals them down helps you to prioritize your goals and enables you to track progress towards your goals and objectives.

Here are some questions to get you started:

1. Where are you now in your business? How is your business currently performing?

2. Where do you want to go? What do you hope to achieve?  What do you want your business to be in the future? How much money would you like to earn in both the short and long-term? How large a business do you wish to operate?

3. How do you get from where you are to where you want to be?

The answers to the above questions will provide a map for your journey by deciding where you are going and how you are going to get there. Apply the principles of SMART goal setting. If you need further explanation on smart goals please refer to our Smart Goals article.

It is important to note that a business goal should include a clearly defined profitability goal. Most business owners have no set profitability goals. Their profit goal is to make as much money as they can. On the other hand most successful and profitable business owners have a clear vision of what they want. They know exactly where they want to be and how much profit they want to make one year from now, five years from now and ten years from now.

They have precise goals, including:

1. Revenue

2. Overhead costs

3. Profit.

Companies that do not set their business profitability goal will not be successful since they do not have a specific number in mind. When you do not have a clear figure it is difficult to aim since there is no fixed target.

Companies that keep track of their revenue, overhead costs, target profit and maximize their business resources are most certain of success. The bottom line is if you want to be profitable in your business, fix your profit target and revenue goals. Display them in front of you all the time and keep track of your progress.

 

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