As a small business owner, setting goals provides your business with a structured framework. Without clearly constructed business goals, a business is likely to have little direction and quite possibly fail. Goal setting helps the company gauge the efforts that need to be put into place to meet sales targets and determine the profit margin and other financial statistics.
What are S.M.A.R.T Goals?
Creating goals involves five pre-requisites that determine their effectiveness. They are known as S.M.A.R.T business goals.
S is for SPECIFIC
In order to be achievable, goals need to be defined and specific. When goals are specific, it creates a much clearer picture to everyone involved in the goal setting and the company. To set specific goals the following questions need to be answered:
• Who is involved?
• What do I want to achieve?
• Where do I need to do this?
• When should I be able to complete it?
• What are the constraints and requirements?
• Why am I doing this?
M is for MEASURABLE
Measuring your goals enables you to stay on track, meet your targets and experience the satisfaction when a goal is achieved. Accomplishment brings a great feeling and will keep your team excited for the next goal.
While setting up measureable goals, ask yourself:
• How much?
• How many?
• How will I know when I have accomplished this goal?
A is for ATTAINABLE
The goals you set should be within reach of your company and be achievable. Setting unattainable goals is a recipe for disappointment and failure. In saying that, make sure you set challenging goals. Long term goals can be made attainable by planning steps wisely and creating a time frame to carry out the steps required.
R is for RELEVANT
The objectives and goals should be relevant to the functioning and nature of work carried out by your business. A goal must be something that you and your team are both willing and able to work towards.
T is for TIME –BASED
In order to keep on track, be successful and continue to move forward in business, goals need to have a set time in which you choose to achieve them. Commitment to a deadline helps focus on your efforts, and creates a sense of urgency and importance. Time bound goals will also keep you motivated.
If you’re looking for advice regarding setting business goals for our business, The Quinn Group can assist. Our professional accountants can help create S.M.A.R.T business goals relevant for you and your business and can also advise in many other legal and accounting business issues. Contact us on 02 9223 9166 or submit an online enquiry.