Any smart business owner understands the inherent value of goal setting in growing a business (and profits) but figuring out exactly how to develop goals that will move your business in the right direction is a little trickier. Making sure you have goals is a no-brainer. Business goals and objectives give the business direction. With set goals and objectives, employees and management know what is expected of them. This understanding also allows them to strive for the same overarching objectives despite their different responsibilities on a day to day basis. They unite an entire business behind one united front towards a singular goal. But who should develop these goals and what exactly should they be? Follow these six tips below to make your goal development a little easier and stress-free.
Tip 1
Setting business goals and objectives is a group effort. Try to include all the employees of the business to get their feedback. Not only will this ensure that they accept the goals but it will also give them a sense of ownership of them as well which will reduce on any resistance. Gaining the commitment to achieve the goals from everyone involved in the business is an important aspect in the goal development process and by involving employees in the process and making sure the goals are clearly communicated to them is a crucial first step. A good tactic is to try to bring the employees together for a group planning roundtable to discuss the overall business, its health and its objectives and goals. You might be surprised by what you hear. Incorporating different perspectives from multiple departments of the small business improves the achievability of the objectives.
Tip 2
Never ignore history. A business cannot look to the future without looking at its past so be sure to base goals on past experience. What did the business achieve in the past? It is an important but often unanswered question. If the company achieved $1 million in sales in the previous year, a realistic and attainable goal may be to increase profits to $1.25 million the following year. It makes sense and is in line with historical performance. On the other hand, expecting profits to increase to $5 million is unrealistic unless there are other outstanding circumstances or situations that could impact the functions of the business. Look to history to keep you grounded in setting the goals and objectives.
Tip 3
Write down each and every goal. Sounds simple and it is. All business goals and objectives should be written down in a plan that is made available to all employees. For added measure also be sure to write down the strategies for achieving those goals. When goals and objectives are written down, highlighting their importance and more importantly their permanence within the company, employees are more motivated to accomplish the goals and see them as their own.
Tip 4
SMART goals. Always follow the SMART system whenever creating business objectives. What is SMART you ask? These are goals that are Smart, Measurable, Attainable, Realistic and Timely. For example, instead of saying that you want sales to increase, a SMART goal would be to increase sales by 5 percent over a period of six months. This creates a goal that is realistic, measurable, and time-focused.
Tip 5
Creating the goals and strategies is not enough. The best laid out strategy is useless unless it is put into action effectively. An the goal will be achieved. The action plan describes step-by-step the actions that will be taken to meet the goals that have been written into the plan. The idea is that the action plan is almost like an instruction manual. Those who review the plan should easily be able to read the steps and follow them to achieve the goals that have been set.
Tip 6
The most important aspect of developing goals is gaining the commitment to achieve them from everyone involved in the business. Therefore, good communication during the developing process is needed, and once confirmed they should be shared widely and openly discussed.
What has been your most successful tactic in setting goals for your small business? Let us know by leaving a comment below!
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