Why is goal setting important for a business?

By December 18, 2020Blog Page
Business Goal Setting

Goals setting is critical for any business owner, as it gives you a long-term vision and provides short-term motivation. It focuses the acquisition of knowledge and helps you to optimise your time, resources and keeps you accountable, so that you can make the most of your business and achieve the desired return on investment.

Finding a business coach that can help you set and reach your goals is vital. You’ll not only have a new perspective, a fresh inspiration as well and be kept accountable!

Keep reading to find the best strategy for you!

What Is Goal Setting?

To create strong and well-structured foundations for your business, you should start with a vision statement. If you beginning with this key step, you will maximise your success. The foundations rely on goals for all areas of your business and include each team member.

I have found that the time and energy invested in goal setting can really pay off. You’ll see improvement in how your business operates and in the performance of your team. The results can be often be dramatic and measurable, with increased productivity and profitability.

Setting goals is a process that establishes what you want to achieve from your business. Then, you must develop and implement the strategic plans that enable you to reach those goals. Finally, ensure that you have systems in place that keep you accountable for achieving those goals.

To help with this, I meet with my clients either weekly or bi-weekly to keep them motivated and accountable to their goals. Every quarter, we also review their progress in regard to their long-term vision for the business.

The value of goal setting

A Harvard Business study found that there is a direct correlation between goal setting and success. It said that 14% of the people who have goals are 10 times more successful than those who do not have goals.

To really understand how goal setting can help a company grow, look at the results achieved by Stan Silverman, CEO of chemical manufacturing company PQ Corporation, who put goal-setting in motion within his business and in five years, the company’s earnings jumped from $14 million to $43 million!

As you can see, undertaking goal setting is really important, as it gives your business a much better opportunity to grow and flourish.

Setting Your Business Foundations

When developing goals for a business, it is important to start with:

Your Personal Goals

Documenting your personal goals enriches your life and is very important for anyone who is running their own business. When you outline your personal goals, clarity appears in why you have your business. You are outlining your values and how they relate to your company.

Define and align your business objectives with your personal goals to focus and set appropriate priorities.

Your Business “Vision Goals”

Remember, the vision is what you want your business to become, it provides the direction.  Goals are statements of what needs to be accomplished to implement the required strategy. Most often, these types of goals fall within four general areas:

  • Service: goals related to improving customer satisfaction or retention
  • Social: goals that focus on giving back to the community
  • Profit: goals set to increase profits by a certain percentage
  • Growth: goals related to the expansion of the company

The Business’ Short-Term Goal Setting

Short term goals are highly detailed and should be set each year. They are the fundamental steps required in order to achieve the long term, visionary goals. Ask yourself these questions to find where to prioritise your goals.

  • What is your business’ turnover rate?
  • What is your role in the business?
  • What does your profit look like?
  • What hours do you work?
  • What is your organisations’ structure?
  • What part of the business’s income do I receive?
  • How do I utilise the management team?
  • What area do I want to focus on?
  • What is our market share?
  • Which markets are we operating in?
  • What new products should we focus on?

Use each of these to add a piece of the puzzle to your long-term goals.

When determining these goals, it is worthwhile to use the SMART Goal method:

  • Specific: Are the goals detailed enough?
  • Measurable: Is there a meaningful figure associated with the goal?
  • Action-oriented: Who does which task and when?
  • Realistic: Are your goals challenging enough? What resources do you have available?
  • Time-specific: What are the deadlines?

It may also be a good idea to talk about these with a business coach so you can stay on track.

Your Action Goals

Your last set of goals are the ones you’re going to tackle in the next 90 days. The action goals are the ones that make all your goals achievable.

Finally, goal setting should not be a task that you do because it is something you think you are supposed to do. Goal setting should inspire both you and your team as it, gives a sense of purpose and direction!

If you involve your team, keep your goals visible at all times and check them regularly. By doing this, business success should increase dramatically because you’ve built its future on strong foundations.

Keep You Goals on Track

Now that you know all the steps of goal setting, you can kickstart your business dream today. However, you need to make sure you stay focused, so that all your planning wasn’t done in vain.

Some tips to help with this include:

  1. Prioritise Your Time

To ensure you’re working toward your goals, you need to make time for them.

Shawn Lynam suggests, “using 60% of your time to proactively focus on tasks that truly add value to your business or cannot be done by others. The other 40% of your time should be divided into two categories: 20% on planning and 20% on strategising”.

You may need to say “no” to things so you can keep your time commitment to your goals. This is a reminder that you must consider personal and business goals together.

  1. Keep Track of Your Progress

When you write down your goals, it makes them much more tangible. When you record your progress somewhere visible, you’ll feel more motivated to keep going.

Forbes contributor Chuck Cohn reminds us, “Setting concrete goals, documenting them, and reviewing them periodically can increase your chances of success by up to 95%”.

  1. Take Breaks When You Need Them

There’s nothing worse than getting burned out when working for a goal. Though it may sound counter-productive, taking a break will keep you focused in the long term. Be sure to have a good work life balance!

Measure Your Goals

To reach your goals, you’ll need something you can measure. That’s how you know you’ve arrived at your goal.

Find a Meaningful Number

The first step in measuring your goal is finding something to measure.

Whether you’re setting a time limit or a certain number of clients, you’ll need to think about what you’re trying to accomplish. Once you have the number you need to reach, set a time limit.

These will be your two main numbers as you progress through your action steps. Keep them in mind when making business decisions moving forward.

Check-in Often with Your Teammates

To measure your goals, you’ll need to check-in often with members of your team. According to Thomas Frey, executive director of the DaVinci Institute, “The average person entering the workforce in 2030 will have to plan to reboot their skills eight to ten times throughout their working life”.

Why not start with helping your employees set and reach skill-strengthening goals now?

  1. Check-in Often with Yourself

Be sure to evaluate the work you’re putting in to reach the goal, too. This is a great time to make sure you’re happy with your progress or reallocate time or resources if needed.

Next Steps: Hiring a Business Coach

One of the best ways to keep yourself on track, though, is through hiring a business coach.

Through my coaching service, I offer a free one-hour coaching session to help you plan and reach your goals. Contact me at any time and we will map out your goals together.