Setting Business Goals

The Aims and Objectives of Setting Business Goals.

Goal setting of any sort, to be successful, must encourage and be achievable. Goals are set by people for people and If they don't meet those simple criteria then the chance of success is slim.

Setting business goals that are un-achievable, leads to confusion, wastes time and upsets employees. Get it right or don't do it at all.

Setting Your Business Goals ...

There aren't many qualities needed to get it right when setting goals, but some of these do need to be remembered ...

• First things first. The first and most important rule when setting goals is to be honest.
  
  • If you are not honest with yourself, your goals will be meaningless.
  • Bluff the end result of your goals and before you even start you know they are never going to be achieved.
  • You need to be pragmatic in order to set achievable and challenging goals.
• Be Specific when setting your goals
  Focus on your goal and word it in such a way that it means something specific. For example, the goal of "increasing the product range by 10 items on or before the 1st May", is far better than simply stating "Offer more products".
  • Be careful when goal setting not to set too many goals, as then none will be important. Don't mistake tasks for goals as achieving a goal often involves many small tasks.
  • Be optimistic when setting business goals. The goal of "hoping to make enough to pay the bills" will virtually guarantee that you don't
  • "Revenues to cover all expenses will be achieved by the 20th of each month" is positive, shows optimism and helps you focus on attainment.
• Ask Yourself if it is attainable ...
  Be realistic when it comes to setting business goals. Only set a goal if you really think that it is achievable. Don?t set goals that are beyond reach
  • If the average annual growth rate in the industry is 10%, setting your sales goal figure at 50% is unrealistic. Unless you know something that no one else does. Set attainable goals that need hard work but are achievable.
• Keep score.
  If you can't measure your goal, it is more a wish than a goal. You have to be able to keep track if the goal is to be of any use. You need to be able to measure progress towards attaining the goal.
  • Display your business goals where all your employees can see them and focus on the targets.
• Time Frame Your Goals ...
  If you want it done set a time. Combine short, medium and long term goals. As the short term goals are met, the medium, (a few months), and long term, (one year plus), become more achievable and help keep staff motivated. Setting a time in which to achieve the goal is vital.
• Are Your Goals Still Significant?
  Sometimes goals can become obsolete due to a change of circumstances. In particular, long term goals can often become irrelevant.
  • If, for example, you are the sole supplier of a widget and a new competitor comes in and undercuts you, the long term business goals you set last year may now be unachieveable.
  • If the goal is no longer relevant, change it. Unachievable goals still hanging on the wall adversely affect staff moral.
  • Remember however, the reasons why you set that goal. If your reasons are still valid then perhaps the goal should remain, but indiviual tasks and targets should be revised.

Quick re-cap on Effectively Setting Your Business Goals ...

• Be honest in your goal setting. Be specific as to the ultimate goal.
• Be sure that it your business goals are attainable.
• Be sure to keep score of each goals progress.
• Always aim to achieve your goals within a laid down time frame
• Ensure your business goals remain relevant to your business sector

Follow these guidelines when setting business goals and your goals will be meaningful and good for business.

Bad Business Goal Setting Practices ...

Setting and achieving goals that work and produce results is one aim of goal setting. A further and more important aim is to ensure the long term survival of your small business.

WHAT NOT TO DO ...

• Goals are set by management to motivate and focus staff.
  Setting good goals will always necessitate taking input from the staff who will be expected to achieve them. So the goals are yours, but based on the input of others. They must be everyone's goals. Goals that are set from the top down and then imposed on staff are counter-productive.
• Setting business goals solely to achieve maximum short term gain without thought to the long term health of the business is asking for trouble.
  You only fool yourself if you use next months sales to achieve this months goal.
• Planning your goals to the exclusion of everything else.
  Spend the minimum time required on setting business goals and then spend quality time on making it happen.
• Good goals are set for the benefit of the people in the business, not bank managers, the press or outsiders.
  Don't use goals to impress others, use them to guide your business to success.
• The smaller the business the fewer the number of goals that must be set and met.
  Why? Because goals are achieved by people and people with too many goals are simply overwhelmed. A one person business with dozens of goals is a disaster, while the same business with one clearly focused goal will survive and thrive.

Remember for every goal set, there are many more activities or tasks that need to be accomplished to meet the goal.

Set your goals sparingly, with just enough to motivate and do the job. Setting business goals is essential for long term business success.

Failure to Achieve the Business Goals You Set ...

Setting goals for your business does not automatically guarantee success. You still need to work hard to achieve the targets YOU set.

In some cases, the goals will not be achievable. In fact poor goal setting is the cause of a lot of wasted time, confusion and can be very demoralizing for your employees.

Goal setting only works if the goals are achievable and are promoted positively to staff.

You must then measure your staffs progress towards that goal.

Provide consistent, positive motivation and properly measure results.

If the results continually show staff are falling short, then re-assess and revise. Adjust individual tasks first and again measure results before reviewing the business goal you've set.

If there are no positive improvements, reconsider the goals aims and / or make sure the staff selected are able to achieve the goal.

Measure and motivate, it's the only way to avoid failure and demotivation.