How to Set Strategic Business Goals
Setting business goals entails more than jotting down a few ideas. Your goals should be related to your overall small business strategy; such as your sales, hiring and other important initiatives.
In this post, you’ll learn how to set business goals, and how to monitor your progress.
Understand why you want to start your own business
As we said, it’s great to be ambitious, and want to take the world by storm with your business. While this is a great attitude to have as an entrepreneur, you’ll need to dial this back a bit when setting business goals to ensure that they are realistic.
Begin by doing a thorough review of the reasons you opened a business. Was it because you wanted to be your own boss? Or perhaps it was because you wanted to turn our idea into a viable business with the hopes that a bigger player would acquire it? These are just a few reasons that individuals start business ventures, and each of them present their own unique set of challenges. For example, if your goal is to eventually be acquired, most of your budget will be spent in the beginning on research and development. You’re going after potential buyers of your company, more than you are potential customers. Coming to terms with the reasons you wanted to start a business helps you draft strategies that are specific to reaching that goal.
Recruit top talent
When building your team, you will naturally want to hire the best employees possible. This means having people with strong backgrounds and experience. You’ll likely want them to be have previous experience in your industry, or maybe have a college degree in a related area. If your goal is to grow your team, you should set a goal to fill the roles that are necessary to running your business. To do this, it may be necessary for you to save money so that you have money to pay these employees. Top talent will likely expect a competitive offer, so keep this in mind when starting the recruiting process.
All in the numbers
You should be able to measure your success with numbers.
For example, set deadline dates for the milestones you want to achieve along the way. A key point noted by the Small Business Administration about setting business goals is the need to identify intermediate goals that you can work toward each year.
Make sure the costs associated with these milestones align with your budget. The costs are estimates, but should result from research. Don’t guess!
Don’t set it and forget it
Inc. magazine reviewed a study that found that more than 80 percent of the 300 small business owners surveyed don’t keep track of their business goals. Also, only about three-fourths of owners reported achieving the vision they created for their business.
To stay on track, make sure to periodically revisit your goals. Measure in percentages how much of the goal has been achieved. If it looks like you’re not meeting your goals, it may be time to change them to make sure they are relevant.
Learning how to set business goals is an important part of being a business owner. By following these steps, you’ll be able to achieve your goals! And remember, once you’ve accomplished these goals, continue to set additional goals. This will help you ensure that your business is evolving. Have additional tips on setting business goals? Let us know in the comment section below.
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