Many entrepreneurs don’t set specific goals for their business, but studies show that goal setting really does drive higher achievement.
According to small business peer board members who’ve embraced this technique, goal setting forces you to focus your energies effectively and develop real, viable action plans. It isn’t hard if you follow their lead.
Here’s how PRO peer board members put the goal setting process to work for them.
Vision Goals: Where Do You Want to Be in Three Years? Most people set goals in one-year increments. Think bigger. Research indicates that successful people plan out three years ahead.
Where do you want to be three years from now? Think in terms like dollars, percentages, and market share, as well as in terms of specific activities. Do you want to add new products to your portfolio? Hire a sales staff?
These three-year goals are your Vision Goals.
365 Goals: Plot a Course to Reach Your Vision Goals Now, let’s figure out how you’re going to get there. Break each Vision Goal down into manageable steps. Look at those initial steps—you’ve just identified your goals for the coming year. These are your 365 Goals.
For example, one PRO member’s primary Vision Goal was to attain 10% of market share. We determined that her primary 365 Goal would be acquiring 3% of market share. Her remaining 365 Goals included specific actions to help her reach her Vision Goal—i.e., hiring a salesperson, launching one new product and reworking her marketing plan.
If your 365 Goals look like action plans, you’re on the right track!
Now Goals: Jump Starting Your 365 Goals
The goal setting process should generate energy, excitement and ideas. These are valuable assets—don’t let them slip away. Leverage them by identifying one or two short-term goals that you can attain in, say, 90 days. These are your Now Goals.
Perhaps one of your Now Goals is to update your website or to join your local small business peer board. Whatever they are, get started right away! Many of your Now Goals are the doing of tactics or actions that will help you achieve your overall strategy.
Assign Due Dates to Your Goals and Action Plans It’s important to break those action plans down into small steps and assign each one a due date. This also allows you to measure your progress and helps keep you on track.
Put Your Goals to the SMART Test
Have you heard of the concept of SMART goals? SMART goals are grounded in the real world; they aren’t just fantasies. Set yourself up for success by making sure your goals meet the SMART criteria:
S – Specific
M – Measurable
A – Achievable
R – Realistic
T – Timely
Put It in Writing
Finally, write this (or type it) all down! The act of committing your ideas to paper forces you to think in concrete terms and make your resolutions more real. It can also lead to brainstorming, which is always valuable.
Studies show that people who put their goals in writing are more likely to achieve them than those who don’t. It’s important. Use the following worksheet to guide you through the goal setting process, help you flesh out your ideas, and give you a written map to refer to throughout the year.
In addition to goal setting, understand the “leading” and “lagging” indicators. The lagging indicators are the actual achievement— sales, productivity, and other goals. The leading indicators are the actions that will get you to your goals, such as number of sales calls, reduction of scrap or set up time. Do you measure your achievement of the tactics to achieve your goals (your lagging indicators)? If you don’t follow the right behavior, you will not achieve your goals.
You can go further with this information by contacting Ray to help you analyze the data you collected about your company. He’s always happy to help Small Business Owners, Presidents, and C-Level Executives strengthen their businesses and take them to the next level.
Set up a zoom meeting with Ray:
https://calendly.com/ray-124/
Or call: 312 593-5133
