Too often, when our businesses are facing major problems, we tend to think that the problem is a complicated one. While in some cases, that may be true, in other cases, the problem may be simple: the lack of Goal setting.
Right from the get-go, goal setting should be a priority for any startup business. Setting goals and objectives for your business has the potential to increase your rate of success and growth. Not only is it important, it is necessary.
Yet, this begs the question, why should you do it? Setting goals for your business is very important, especially as you are starting out. Goals and objectives help you recognize your mission and vision for your new business. Also, it helps you recognize whether you are in the right line of business or not.
Goal setting gives you an idea of what you are working towards. It’s really hard to work towards an objective that is undefined. Moreover, having objectives in place help you gauge whether or not you are making any progress at all. Also, it helps you create a framework with which you can work with.
From the above-mentioned benefits, it’s pretty obvious that goal setting makes your progress as a business that much easier to achieve. That said, how can one set business goals, that can guarantee success? However, before we get into that, let us start by defining what goal setting is.
Goal Setting Defined
What does it mean to set goals for your business? According to the business dictionary, Goal setting is a motivational method that is grounded on setting achievable objectives to increase performance and productivity.
In other words, it is basically a process of determining what you wish to accomplish as a business, and then, coming up with a plan on how to achieve them. It is important to note, that goal setting encompasses three crucial steps: Setting the goals, creating a plan on how to achieve them and working towards achieving those goals.
Admittedly, setting the goals just won’t get your business to where it ought to be. You need to know how to get your business there and be willing to work towards them.
Business goals can be either long term, short term or both. This, of course, depends on what it is that you are working on as a business. You can have daily, weekly goals, monthly goals or annual goals as a business. In fact, it is recommended that you have goals as categorized above.
They act as a reference to your progress, and as a reminder of what you are working towards. To make the process of achieving your goals easier, include them as part of your business plan. Let us not take a look at how you can set business goals that can help you achieve success.
How to Set Effective Business Goals:
Set Realistic Goals
When setting goals, we tend to get a bit ahead of ourselves. Granted, as a business person, you have a vision for your business. Yet, we need to be realistic. Access where your company is currently, the resources available, your workforce, and work with that.
If you have limited resources, then create goals that you know you can achieve with a certain budget. Resources include money, time, energy, number of employees and so forth.
Set Goals Should Be Specific
Narrow down on what you and your workforce should be working towards. If you are working towards an increase in profit, then be specific or precise. For example, I am working towards a 50% increase in profit by the end of the year.
Having a specific goal in mind gives incentive and productivity. And as each working day goes by, the set goal lingers in your mind as you strive to achieve it. Plus, stating the goal in numerical terms, gives a good idea of what you are working towards.
The Set Goals Should Be Measurable
A goal or an objective should help you measure or gauge your progress. They should help you indicate whether your business is two steps behind or a few steps ahead of schedule. This ensures that you stay focused on your set path, and not trail off.
Set Attainable Goals
There is one thing that stuck out to me from the Business Dictionary definition of goal setting. According to the Business Dictionary, setting challenging goals leads to higher performance as compared to setting easier, and many simplistic goals. As true as this may be, ensure that they are goals that you are sure you can achieve. Keep them challenging, yet achievable.
Set Goals with a Time-Frame
This means, that you are working at a particular time- frame. Your goals should be dated, in terms of when they should be achieved. For example, you want to increase the rate of production by 50% by the end of the year or month. If you have a particular time set to achieve the goal, you will ensure that you utilize your time, energy and resources effectively.
Set Engaging Goals
The set goals should make one want to wake up in the morning. Ensure that the goals you set, align with the company’s vision and mission. Moreover, ensure that each individual can identify with them. Setting goals that are engaging can increase the rate of productivity considerably.
Your Goals Should Be Relevant
This means that your daily, weekly and monthly goals, should all be working towards achieving the main goal. In other words, all of your short-term goals should be steps that all add up to the ultimate goal of your company or business. Also, ensure that your goals align with your business plan. The business plan should completely go hand in hand with your goals and objectives. Also, your goals and objectives should compliment your business plan.
Keep Them Simple and Clear
Remember, these goals do not only apply to you, but your entire workforce as well. They should be plain and clear, to ensure that they are well understood. If your workforce has a hard time comprehending the set goals, they will have an even harder time achieving them.