You already know the importance of setting goals for your company,
and you probably have quite a few penned down to accomplish this year.
You might have another list of objectives at the beginning of last year
and the year before, too. But how many targets do you accomplish each
time the year ends?
Many business owners start off with an ambitious list of things they
need to do. It’s a commendable act; goals keep you motivated along the
way and help you achieve success. But many people never usually get
around to accomplishing even half of the goals they set. This is mainly
because their goals lack focus.
A lot of people establish too many goals, which are mostly unspecific
of how they are going to achieve them. However, setting up S.MA.R.T.
goals can help them plan their tasks wisely making it easier to complete
and lessen the stress in juggling responsibilities.
S.M.A.R.T. is an acronym for Specific, Measurable, Achievable,
Realistic and Time-bound. It is a proven goal setting procedure that
high achievers use to reach their goals consistently.
Learn how the characteristics of S.M.A.R.T. goals by following the
tips below, so you and your business can achieve success in no time.
1. Identify and Clearly Define Specific Goals
Great goals are well-defined. Outline exactly what you want to
achieve and break it down to specific tasks. Explain what you need to
do, when you need to do it, how you are going to do it and the desired
result of your goals. “To expand the business to Asian markets” is a
good goal, albeit a very vague one. It can be revised to a more specific
goal like, “To open 10 outlets in 5 Southeast Asian countries by
December 2016 and gain an international market share.”
Also, when you have identified your specific goals, write them down for future reference, clarity of thought and accountability.
2. Measure Your Goals
Setting a goal without measurable outcomes is like a tennis
competition without a scorekeeper. You’ll never know if you are winning.
Put concrete numbers to your goals to track and recognize the
milestones you reach. A measurable goal should answer these questions:
How much? How many? How will you know if you have reached your goal?
The goal outlined in the previous point is a good example of a
measurable goal. It answers the number of outlets the organization needs
to open, the number of countries it needs to have a presence in and the
timeframe it needs to happen. By the end of 2016, the organization will
measure their results by the number of stores opened and the countries
they have entered.
3. Have Resources to Attain Your Set Goals
One of the biggest mistakes made by entrepreneurs when setting goals
is aiming out of reach. No one has ever built a billion-dollar business
overnight. It took top companies many years of hard work and
strategizing to get to where they are. This, in no way, means you need
to stop dreaming or that you must set sub-standard goals. It just means
you should have a foot placed firmly in reality while you reach for the
stars.
Take inventory of your available resources, skills and tools, and
compare them with what’s necessary to achieve your goal. Scale down your
goals to what’s possible to hit according to your resources in the
current situation and keep updating them as you grow.
4. Set Goals That Are Realistic and Relevant
Your goals should matter to your business. This is, perhaps, the most
important part of setting goals and should be considered first. Your
goals won’t matter if they are not relevant to your business, whether
they are attainable and measurable. You will just spend time pursuing
goals that do little to improve your business.
Relevant and realistic goals are those that are closely related to
what your business does and will drive it forward. A practical goal
should answer questions like:
Is it worth pursuing? Is it the right time? Is it feasible in the current socio-economic climate?
Take careful consideration of the business climate and set goals that
are based on current economic conditions and business realities. For
example, your company might be doing well and you’re looking to increase
its revenue through sales by 50% at the end of the year, but if a
looming economic recession and a big increase of competitors will
develop, your goal might not be realistic at the current time.
5. Have a Timeframe for Achieving Goals
If your goal for your business is to make a 50% revenue increase,
sure, that could happen. But it could be in 50 years’ time if you don’t
set a timeframe to achieve it. A timeframe gives you a deadline to
strive for, and that will motivate you to work harder to reach your
target.
Set a particular time when you’ll start working on your goals, when
you’ll review the progress, when the goal should be completed and when
you’ll assess the result. Doing such practice will give you a sense of
urgency and avoid replacing your goal with other day-to-day crises that
will be invariably present as your business grows.
Whether you are a budding empire of 50 people or just starting out on
your own, setting S.M.A.R.T. goals is essential to your success.
Without goals, you have no defined purpose or a benchmark to strive for,
consequently forcing you to struggle in moving your business forward.
