In order to understand how to set your business goal, let’s first find out what a business goal is and why it is necessary for your business.
What is a business goal?
A goal is a simple, realistic path from where your business is right now to where you want it to be.
Why does a business company need to have a goal?
● Well-chosen goals and objectives point a new business in the right direction
● Keep an established company on the right track.
● Provide direction, motivation and a clear way to measure your progress.
● They help improve your overall effectiveness as a company — whether you want to increase your share of the market, for example, or improve your customer service.
What’s the difference between a business goal and objective?
● Goals tell you where you want to go; objectives tell you exactly how to get there.
● Goals can increase your effectiveness; objectives back your goals and make you more efficient.
● Goals are typically described in words; objectives often come with numbers and specific dates.
What are the types of goals?
There are two perspectives on setting goals for your business. Depending on your business strategy and vision they can be Short-Term and Long-Term Aims.
Start by distinguishing your long-term goals from your short-term ones. Your long-term goals should have a timeline of about three to five years. Your long-term aims should articulate your company’s mission statement, reflecting the reason your company was founded. Goals of such a type usually fall within four general areas: service, social, profit, or growth:
• Service – Goals related to improving customer service satisfaction or customer retention.
• Social – Goals that focus on giving back to the community, through philanthropy or volunteer organizations, for example.
• Profit – Goals set to increase profits by a certain percentage.
• Growth – Goals related to the expansion of the company, through new employees, for instance.
As soon as you have set your business goal for a long-term, it’s time to figure out how to get there. Short-term objectives for accomplishing your long-term goals can be described as “smart” ones.
• Specific. In order to work, objectives need to be concrete (not as abstract as your long-term aims) and highly detailed.
• Measurable. Put a figure or value, such as a dollar amount or percentage, to the objective.
• Action-oriented. Figure out who and when should take these or those actions.
• Realistic. Make goals challenging, but consider your resources so that you can actually achieve them reasonably.
• Time-specific. Set a deadline to keep things on track.
Business planning effectively helps to achieve goals of any type.