Set goals that propel your business forward

I am convinced that we all want our business to move forward fast. I suggest we develop goals that will propel our business. Here are steps that will help to achieve the target:

Step 1: Analyze last year’s performance.

You can’t set the right goals without the correct information. So, take some time to gather data from the previous year to find areas of strength and weakness.

Look at your:

•             Revenue streams — what are your most profitable areas? Your biggest cost centers?

•             Sales & marketing — can you spot trends in customer acquisition or marketing ROI?

•             Operations — where is your business bottlenecked? Where might you be overstaffed?

•             Employee performance — look at productivity and churn. Which direction are things going?

Step 2: Brainstorm areas for improvement.

Write down all the possible things you could work on. This is a great group activity for your leadership team or even the whole company (depending on your size).

The data you’ve collected in step 1 should give you some idea of opportunity areas.

Once you’ve got a list, sort them in High and Low Impact opportunities.

One tip: don’t discount an idea just because it’s hard. Often the biggest impact things are hard to do. But you should be realistic about the effort required to get something done, and its chances of success.

Step 3: Set SMART goals

Use SMART criteria to set clear and actionable goals. SMART stands for:

•             Specific: Define clear and precise goals. Instead of saying "increase sales," say "increase sales by 12% in the next 6 months."

•             Measurable: Ensure each goal has quantifiable metrics. E.g. "Reduce customer acquisition costs by 15% by the end of the year."

•             Achievable: Set realistic goals based on your resources, budget and other constraints. E.g. if you have limited cash, avoid goals that would severely impact your monthly cash flow.

•             Relevant: Align goals with your overall business objectives. Ensure they address the key areas for improvement identified earlier.

•             Time-bound: Set deadlines for each goal. E.g. "launch a new service by Q3."

Step 4: Develop an Action Plan

For each goal, create an action plan that outlines:

•             Steps and Milestones: Break down each goal into smaller, manageable tasks. Set milestones to track progress.

•             Resources: Identify the resources needed (time, money, personnel) and ensure they are available.

•             Responsibilities: Assign tasks to specific employees. Ensure everyone understands their role and what is expected of them.

•             Timeline: Establish a timeline with deadlines for each task and milestone.

Doubling down on one point there: always assign tasks to a single person. They can still bring in other people to contribute, but it’s one person’s responsibility to get it across the finish line.

Step 5: Monitor and Adjust

Goals are not static. Regularly check your progress and adjust based on new insights or changing circumstances. Schedule monthly and/or quarterly reviews to keep everything on track.

Having a simple KPI tracker is a good way to keep tabs on things.

Make sure you’re regularly checking in and ask people to flag any roadblocks or necessary adjustments as soon as they identify them.

I have three closing thoughts:

Efficiency. When you’re a small business with limited resources, efficiency is key. Think outside the box about how you can accomplish ambitious goals – what can you automate? What can you outsource? Who do you have in your network that could offer advice or guidance?

Be aggressive within reason. Your goals should be ambitious, but not impossible. If you say “triple revenue this quarter” and everybody knows it’s a pipe dream, your team won’t fight for it.

It’s not all-or-nothing. If you’re hitting 100% of your goals, you’re setting your sights too low. I’m happy when my companies hit about 80% of their goals.

I wish you success in propelling your business forward and would appreciate getting responses from you; contact me at [email protected]