The Importance Of Setting Business Goals

When you come up with your business idea, the purpose is to expand and grow it over time but one of the main reasons why businesses fail, both on and offline, is the lack of focus.

This focus can be found through the process of setting business goals, which is a marker of sorts.

It is a milestone that you strive to reach and once reached, it can lead to other ones further down the road in your business.

Plus, these markers can also map out a path for you to follow which is very important.

For example – Have you heard of desires as they pertain to business?

They are often the visions that we see when we think about our business idea.

Let’s say that your business idea is to sell your homemade crafts.

The vision could be seeing yourself making money and buying a new home or car.

What makes this different from a goal for the business is that it is not specific enough.

You see, you can actually have a 9-to-5 job and make enough money to buy a new home or car.

Your goals have to contain some specific attributes in order for them to work as goals that can help your business now and in the future. S.M.A.R.T. Attributes Let’s name these attributes.

First: Specificity

Your goals need to be specific. 

If you want to have yearly revenue starting with $50,000 the first year, then you can outline steps to reach that dollar amount.

Saying that you want to make money is too easy to ignore in the grand scheme of day-to-day business trials.

Second: Measurements

Is your goal measurable? Shooting for $50,000 in revenue is a measurable goal. If you exceed or fail to meet it, you can see how far under or over you were and take steps to set new goals. It is easier to come up with a plan when you can see your goal in the distance.

Third: Attainability

Is yearly revenue of $50,000 attainable for a crafting business? 

When you are the only employee, during the first year, maybe not. But, it is better to know this at the beginning when setting up your goals then at the end of the first year when it could break your confidence.

Fourth: Realism

Every goal may be workable in time but can that be the case right now?

Still using our dollar amount of $50,000, selling one type of craft at the outset will not likely give you $50,000 in revenue by the end of the first year without a lot of work.

Would it be better to set a new goal for a lower amount or increase your product line?

Fifth: Time

Set a deadline for your goals because open-ended goals are really easy to ignore. 

In addition, they create excuses that can ruin your business!

So set a reasonable time limit that will motivate and not demoralize you.

Business goals set a tone for your business and keep you focused on the end results you want to achieve.

I hope that this information has been helpful to you and if so I’d love to hear about it!

Please leave me a comment letting me know at least one tip that you plan to use immediately because you’re know it will make a difference in your business.

Have an amazing day!

Pam Lawhorne