Why You Need to Set Goals for Your Small Business
Setting goals for your small business may be the factor that determines the success and longevity of your business. Goals will keep your vision in mind and help you stay on track. Both long and short-term goals help any kind of business succeed in the increasingly competitive business world. There are many reasons that goal setting is vital.
Importance of Long-Term Goals
It is important to identify the difference between long- and short-term goals. Long-term goals should outline the state of your business in three to five years. Consider your mission statement and the purpose of your business. Your long-term goals should reflect the reasons you started your company. It is easier to become motivated about goals that address what you wanted for the business in the first place. Unrelated goals may feel forced, and as a result, be more difficult to feel energized about.
Long-term goals should be categorized as service, social, profit, or growth goals.
- Service goals focus on customer treatment and experience. For example, hoping to improve your retention rate to 85% would be considered a service goal.
- Social goals are related to philanthropy or community support. Many customers appreciate businesses that devote some time, energy, and finances to helping others. Setting goals to do more volunteering or donating more to a charity will help appeal to more customers.
- Profit goals focus around one of the most basic aspects of a small business: the profitability of your company. They usually include increasing profits by a certain percent.
- Growth goals are often closely associated to profit goals. Growth goals would be targets for increasing the number of employees, storefronts, or other company expansion concepts.
Importance of Short-Term Goals
Like long-term goals, short-term goals are vital. After identifying your long-term goals, use short-term goals to outline the steps you will take to fulfill the long-term goals. Experts advise that you should set S.M.A.R.T. goals, which are specific, measurable, action-oriented, realistic, and time-specific. Whereas you can classify long-term goals by the year, short-term goals need to target a more specific time, such as January 2019, for example. It is also a good idea to apply a number or value to the goal so that it is easy to for you to identify whether you were successful.
No matter what your short-term goals are, be sure they lead to the long-term goals. If both types are not connected, you will not be able to meet both the short- and long-term goals. Additionally, try to make sure that everyone in your business has a specific goal. It will help motivate your employees if they have a short-term goal to aim for.
Potential Small Business Goals
Though there are specific goals that apply to your business, there are some general goals that you should consider setting for your company. For example, set a goal to focus more on how you are treating your employees and customers. Happy, satisfied employees and customers are vital to any business. Along with paying more attention to those groups, you can set a goal to monitor your stress levels better. The business world is fast-moving and competitive. It can easily lead to overwhelming anxiety. Set a goal to identify and deal with excessive stress.