How to Determine a Business Goals
Setting business goals is important for the health and growth of any business, large or small. From increasing third quarter profits to ramping up promotional efforts for the holidays, every business should have a set of goals it's working towards. The goals should be specific, measurable, within reach and understood by employees and business owners alike.
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Things You'll Need
- Sales results and activities from the past 6-12 months
- Notebook
- Pen
- Computer
- Internet and email access
- Printer
- Poster board
Instructions
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1
Create a clear definition of your business and what it represents, if you haven't previously written a business description and mission statement written. To ensure all your business goals are value-driven, it's important to have a description and mission in place before you set goals.
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2
Take a look at what your business has done in the past 6--12 months. Look at sales results, marketing plans, financial statements, as well as your staffing and business operations. Also, take a look at the products and services you offered during this time frame. Make a list of strengths and weaknesses. Examine your weaknesses and rank them according to which you'd like to address and change first. If you're just starting your business, you won't have information from the past to review, so thoroughly research your industry and competitors.
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3
Come up with an initial list of ways to improve your business. For current business owners, you may decide you want to increase sales, hire more employees, launch a new product, collect overdue receivables or move into new office space. For new business owners, you may want to set up office, file for a business license, order business cards or develop a website. Build a spreadsheet on your computer with column headings for "goals," "time frame," "cost," "delegate to," "status," and "notes."
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Go back to your list of goals and apply the S.M.A.R.T. goal-planning concept. Use your spreadsheet to document information about your goals. Be sure that each goal is: Specific, Measurable, Attainable, Realistic and Timely. For example, if you own a skin care line, a S.M.A.R.T. goal may be to launch a new all-natural anti-aging cream in eight months to the 50-plus age market at the cost of $40 with a profit of 50 percent. Your goals should be specific enough so anyone who reads them can understand what you want to accomplish.
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Develop with strategies to accomplish each goal. For example, if your business is launching the anti-aging skincare line, some strategies could be research formulas with your development company, create a product name and do research on the 50-plus market. Your strategies should also follow the S.M.A.R.T. technique. Assign resources such as financing and people to each overall goal. Include this information on your spreadsheet.
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Meet with your staff and share your spreadsheet. Ask them for input and include it where appropriate. Let them see the importance of each goal, how it affects the business and how it affects them. Be positive and show them how passionate you are about growing the business with them.
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Revisit your business goals with your employees at least once a month for status reports. You don't want to inundate your staff with a weekly meeting unless it's necessary.
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Tips & Warnings
Offer an incentive program to help motivate your employees to accomplish your business goals.
Use poster board to create charts to track progress. Display them where all employees can see.
