Starting or running a business requires deliberate planning and goal setting. What is the Simple Goal Setting For Business. A healthy company will have a clear set of consistently updated goals to help it achieve smart objectives. For a long time, we have used the letters SMART to outline how businesses should go about setting goals and targets. This guiding principle is important in ensuring that you set business goals that are geared towards your business success.
Business goals are precise articulations of what your business will achieve within a particular time frame. They are more specific than your overall mission statement and fall under the umbrella of your business plan. Whether you’re a massive corporation or a small business, having clear business goals that are time-bound and attainable allows you to orient your company in the right direction as you grow.
4 Tips for Setting Effective Business Goals
1. Set goals that are clearly defined and not overly complicated.
2. Set goals that establish both a short-term and long-term strategy for your business.
3. Set goals are ambitious but achievable.
4. Set goals that help your team see the overall company vision and require teamwork to attain.
Specific, Measurable, Attainable, Realistic, and Time-bound.
Business goals need to be specific so everyone knows what needs to happen to achieve the goal.
Goals need to be measurable so you can accurately track your progress toward the goal and make necessary adjustments along the way.
Goals need to be attainable, to avoid leading to disappointment
Goals need to be realistic, they should not have a high probability of failure or frustration.
Goals need to be time-bound, you need to have an end in sight for the goal or target.
It would be great to note that goals and targets are not a one-time thing but rather something that needs to be revisited often so adjustments can be made before it is too late
How do you use this in your business?
Making your business goals SMART, enables you to know what you are after and how to achieve it. For instance, with a target of serving more clients in a shorter time, get an automated system that allows your cashiers to swiftly and conveniently close orders avoiding all the paperwork jargon.
With the Pesapal Sabi PDQ, a cashier is able to close an order as the PDQ is integrated directly into the ordering system. Some of our clients using the solution include the Artcaffe and KFC restaurants. Giving your clients an opportunity to order and purchase your services at any given time, makes your goals SMART. How can this be achieved? By having an online store!
With this, your clients are no longer restricted by in store purchases, but can conveniently make orders online and conveniently make payments. Having Pesapal as your payment provider ensures that your clients can either pay via Mobile money or card options from the convenience of their homes or offices.
How do you break this down further to make it easier to process?
Identify your long-term goal (5 – 10 years) versus your short-term goals (6 – 18 months). Long-term goals allow you to look at the bigger picture and understand where the business is heading. Shorter-term goals allow you to work towards your long-term goals while understanding everyday processes. Break down long-term goals as much as possible to make sure you can track each milestone. These business goals also need qualitative and quantitative measures to show that they have been achieved.
As you go about working towards your goals, it’s important to keep track of your small wins. Identify milestones you and your team are achieving as they go about and celebrate each step. Not only does this motivate you, but it also allows you to review your progress and make changes where necessary.
Business goals help us learn, develop new skills, and become more confident about ourselves as we strive to reach them – and this helps us grow as individuals. While pursuing your goals, it’s also important to be flexible and adapt.
How to Use the SMART Method to Set Business Goals
Once you’ve evaluated your business and can see how it stands to grow within your industry and market, you can set accurate and attainable business goals. Before you do this, though, you’ll want to familiarize yourself with the concept of SMART goals—an acronym for Specific, Measurable, Attainable, Realistic, Timely. This approach is a time-tested technique for developing goals that innumerable companies have found effective.
When setting goals, business owners who employ the SMART method evaluate their goals on the following basis:
1.Specific: Can you explain your goal clearly to your staff? Say your overall goal is to boost market share and increase revenue. That’s all fine and good, but what are the specific actions you can implement to move toward those goals?
2.Measurable: Will you be able to track how far along you are toward achieving your goal? Say your goal is to boost customer satisfaction: What metrics will you use to track how consumers feel about your product?
3.Attainable: Based on your homework about your business, your industry, and your competitors, are able to achieve your goal?
4.Realistic: Have you taken into account all the factors that will affect your ability to reach your goal? What obstacles do you face? Do you have sufficient resources?
5.Timely: Have you set a timeline for your goal? Will you be able to attain your goal in a reasonable amount of time?
What Is the Difference Between Goals and Objectives?
Business goals are typically broad and lofty whereas business objectives are more precise. Objectives should be incorporated into your goals as a means of attaining them.
1.Business goals are generalized and long-term. Once you’ve established your company’s business goals, you can break them down into individual business objectives.
2.Business objectives are specific and short-term. They are milestones that help you track your progress toward your business goals. If one of your business goals is a certain rate of customer retention, perhaps you’ll set the objective of rolling out a new product once every six months as a way of keeping customers interested.
How to Set Objectives to Help You Attain Your Business Goals
As you work to achieve your business goals, you’ll need to develop business objectives in a way that is workable for your staff. Business objectives provide a concrete gameplan that allows your team to achieve the company goals.
1.Know who will be involved. Implement a performance management system for doling out assignments. Build the company objectives into your staff performance reviews and reward those who achieve objectives.
2.Create action plans. These should include specific tasks for specific people. Make sure individuals have ownership of particular pieces of the plan.
3.Establish a timeline. Set deadlines for reaching the company’s goals and individual objectives.
4.Provide sufficient resources. Ensure that your team is equipped to do what they’re asked. Build your business objectives into your budgeting process.
5.Be a leader. Clearly communicate your business goals and business objectives. Describe the final destination so that your employees know what they’re working towards. Keep them updated. Be transparent. Be honest. Inspire your team.
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