Goal Setting Practice for Business Success
The best goals happen because there's a plan
Goal setting is the process of deciding what you want to accomplish and devising a plan to achieve the result you desire. For entrepreneurs, goal setting is an important part of business planning.
For effective goal setting, you need to do more than just decide what you want to do; you also have to work at accomplishing whatever goal you have set. For many people, it's the third part of the goal setting definition that's problematic. They know what they want to do and they're perfectly willing to work on it but they have trouble creating a plan to get there.
So for successful goal setting, the first thing you have to do is close the gap between the end result you want and where you are now with a plan.
Setting Personal and Business Goals
The same goal setting formula and strategies that work for business goals will also work for personal goals - the difference is that applying the strategies that are often used to set business goals will give you greater success with achieving personal goals than is often the case.
Business goals are typically set on an annual basis and should be aligned with your long-term goals. These goals should be worked into your business plan and, when appropriate, areas like sales forecasts.
Throughout the year, you might have weekly, monthly, or quarterly sessions where you review your progress towards the annual goal. Writing down the results is essential for staying on track when you're working towards achieving a goal.
Planning Toward Your Goals
At the end of each day, you should review what you have accomplished for the day and think about what you would like to achieve on the following day. Preparing a to-do list for the next day each night is an excellent practice that will help keep you on track.
Whether you prefer to do it at night or in the morning, daily planning is a highly recommended way to increase your business success. Regularly reviewing your progress towards achieving your goals and your goals themselves keeps you focused and motivated.
Strategy for Goal Setting Success
One easy way to ensure you accomplish your goals is to follow the SMART acronym, which is:
- Specific - For example, I want to increase my business revenue by 30 percent this year.
- Measurable - "Increasing sales" or "reducing debt" are measurable goals, "working harder" or "increasing my personal satisfaction" are vague and difficult to measure. Putting your goals in writing helps to keep you focused and see how much progress you've made toward your goals at the end of the defined time period.
- Attainable - A goal should be challenging but attainable. If your business is a lumber yard, overtaking Home Depot in sales is not a reasonable goal!
- Relevant - Goals should be aligned with your long-term plans. If your long-term plan is for your business to attain $200,000 a year in sales your short-term goals should directly relate to achieving this.
- Time-Bound - Without a specific time frame for your goals they can't be properly measured. A goal should contain a time limit (e.g., "by the end of the year I want to increase sales by 20 percent").