Set the Right Goals for Your Business

Making a list of goals is necessary for any small business

Creating a list of goals takes time, so you want to be sure you’re setting them wisely. Time and again entrepreneurs set goals that are way beyond their reach or that don’t move them forward.

So how do you set the right goals? Make sure they’re attainable and realistic, measurable and specific, and do something to keep your business going in the right direction.

SMART2 goals

SMART goals are those which are:

1. S: specific

2. M: measurable

3. A: attainable

4. R: realistic (or relevant)

5. T: time bound

But take that “T” a step further: focus on the timing of progress reports and teams. This is where the SMART2 comes from.

This acronym works for many small businesses because it gives them a place to start when creating goals. Instead of saying “I’ll save more money this year,” your goal should be much more specific: “I’ll save money by only eating out once a week.” That’s a specific goal that’s measurable.

But take that another step further and make it realistic: “I’ll save money by only eating out once a week unless it’s a special occasion.” This is a more realistic goal since important things do come up throughout the year that we won’t want to miss.

This is an example of how to create a goal that accounts for your real-life habits and creates something attainable you can actually accomplish.

As far as the T2 aspect: when you’re setting goals for your small business, implement team check-ins with regular progress reports, and focus in on team input. More on that later.

What does “attainable” really mean?

You may be thinking – of course, my goals are attainable. Why is this on the list? But in fact, when we’re feeling motivated and going crazy with goal setting, the stars can get in our eyes, and we start thinking way too far into the future.

With goals, it’s important to avoid trying to do everything at once. Instead, think of each goal as one small step of many that will eventually get you to your end goal.

Using the money-saving example from above, you can think of each penny you save by not eating out as working toward one big goal: to grow a savings account by $1,000 in a given year. One step is not eating out, the next is saving a specific number, and the overall goal could be that you need new office equipment.

Whatever your reason for setting a goal, think of it as one stage of the big picture. Those stages are your every day, attainable goals.

Narrow your focus

On a similar note, remember to keep the focus of your goals narrow. Without doing so, you may not even have one specific focus. Your goals can become too broad and unreachable, and you end up setting yourself up for failure.

This is why it takes small, focused steps to reach the bigger goals. Think of these short-term tasks as hallways that will lead you to the big open spaces.

Do a SWOT analysis

SWOT analysis is an effective tool for many businesses, and it can help you create goals that are actually relevant and necessary to your success.

To create a measurable goal that will improve a process, you will identify the strengths, weaknesses, opportunities, and threats.

1. Strengths: take a look at the numbers to see where you’re performing well. What are your talents? How is your business unique?

2. Weaknesses: in what areas could you use more work and attention? What experience or resources do you lack?

3. Opportunities: get involved in the industry and think about untapped markets or avenues. Is there a client base you haven’t yet tried to reach?

4. Threats: what’s the competition doing that you’re not? Is the overall industry struggling?

Your strengths and weaknesses may lead you to new opportunities, which will then lead you to goals that will actually move your business forward, and improve your knowledge and experience in a certain area. This analysis will also lead you to more measurable goals. It’s a good idea to compare your original SWOT analysis to the one you’ll do a year later.

Find a sounding board

Bounce ideas off your team and allow them to contribute to goal setting. If you do have employees, they’ll be as much a part of achieving goals as you will be. They may be able to show you ways in which your goals won’t work, or introduce new goals in an area where they see a specific need.

It’s always better to have as many minds as possible around the brainstorming table.

When you’re ready for more guidance on business development as an entrepreneur, Paper Napkin Wisdom is here to help. We provide tips and tricks in the form of podcasts, keynote sessions, workshops, and executive coaching. We were built by entrepreneurs to help other entrepreneurs take their vision to the next level. Get in touch with us today.