How to Set Goals in a Business
Life is what you prepare for. Likewise, business success is a result of how you set and achieve business goals. For this to be a reality, you got to be a pro at setting goals. This subject is even more important now, given how much we have been putting out fires all-round – for the better part of the past two years. To say that it has been hectic in 2020 and 2021 will be an understatement. It has been excruciating! I understand that many businesses are still licking wounds after the experience with the pandemic. But life (or rather business) has to go on. There is success to be achieved ahead. You need to set goals, and this is how you do it perfectly. See below.
a. Start by defining goals versus objectives
I have seen many people confusing objectives and goals. These two words mean different things. An objective is very specific, while a goal is broader and covers many areas in your business. However, to achieve a goal, you set a number of objectives, especially within your teams. Therefore, objectives outline how you are going to achieve your goals.
b. Define your long-term and short-term goals
Goals can be set for periods of more than a year (long-term) and for a few months or weeks (short-term). You ought to define these in line with your business. For example, one of the short-term goals could be to open a new retail branch in your city in the next three months.
It is important to understand that short-term goals help you achieve long-term goals. Using the above example, the long-term goal could be to expand your retail business into another city. So, you will use profits from other branches you opened in your city to open a branch or retail store in another city.
c. Break down your goals into actionable targets
Goals that aren’t actionable mean nothing. And, for them to be actionable, they must be broken down into objectives assigned to specific teams. Using the above example, if your goal is to open a new retail shop in the next quarter, objectives must define steps you will take to get there. For example, when and who should ensure that all necessary compliance regulations are fulfilled. And, if there are needs for registrations with the State Department, who will do that, how, and when.
d. Set specific goals
Goals that are not specific are difficult to achieve. It will be hard for you and your team members to measure progress and know when to stop and focus on the next task. Bear this in mind when you set your business goals. Examples of specific goals include increasing sales by 35% in the next 6 months and opening two more retail outlets in the next 12 months.
e. Effectively assign tasks to your teams
As a business owner, one of your greatest strengths should be organizing and supervising your team. This also includes the effective assignment of tasks. These skills will help you achieve your goals. Know which team member to assign certain tasks and who needs more supervision than the other.
f. Have regular meetings to review progress
You cannot set goals and just forget about them until the final deadline. It is important to set team meetings, including some on business strategy in order to achieve these goals. You must review progress on an ongoing basis. Agree with your team on the intervals of the meetings, for example, weekly or bi-weekly.
g. Celebrate achievements
Many business owners often overlook this, but it plays a huge role in motivating your teams. Celebrating achievements is a way of telling your team members that they are doing well and you appreciate their efforts. It also gives you, as the business owner or manager, the hope that your goals will be achieved as planned. Remember, as a business leader, you don’t only need your expertise to make it, but you need to be hopeful in some moments.
h. Be accountable
Accountability helps you reach your goals faster. Set specific times to sit back and reflect on your actions as a business leader. Ask yourself if what you have been doing is in line with your goals. Be honest with yourself. If it is difficult to do this, I always encourage business owners to find an accountability partner who will help them scrutinize themselves.
People have also asked the following
- What are business goals examples?
Examples of business goals are; to open a new retail outlet in the next 6 months, or to grow sales by 40% in the next 12 months. When setting all these goals, ensure to make them SMART.
- What are the 5 types of business goals?
5 types of business goals are as follows: Financial goals, customer goals, growth goals, employee development goals, and social responsibility goals. Any business can develop several goals under each of the above categories. For example, under social responsibility, a company can set a goal to take 2 orphans to school every year.
- What are smart business goals?
SMART business goals must be Specific, Measurable, Achievable, Relevant, and Time-bound.
- What are short-term business goals?
Short-term business goals are goals that you want to achieve soon. These have timelines ranging from a few days to a few weeks and months. Usually, a goal that must be completed in under 12 months is short-term. Businesses use short-term goals to achieve long-term goals.
