Business goals are embodied in its plan. What are these goals that businesses need? Simply, business goals need to be SMART.
Set specific goals for your business. Don’t just say, I want to improve profits next year or I want to increase sales. State how much you want profit increased by, so a plan that states that I want a 10% increase in profit or a 300 units increase in sales volume is far better. When you don’t have specific goals you will have nothing to measure against.
Your goals must be measurable. Therefore, if you want to achieve your goal of 300 units in sales within 12 months then you need average sales of 25 units per month, you can measure in smaller stages to achieve a bigger goal. You should have a method in place for achieving this, maybe you need more material, new equipment, more employees or you need to re-assign work tasks.
It must be possible to achieve your goals. Therefore your goals should be within reach, if not, you are setting yourself up for failure and disappointment. If you are a newcomer and the industry’s average sale for the top business is 200 units per year, how likely is it that your sales would be 300 units for the same period?
Goals must be realistic. Realistic goals are challenging, but attainable. Mind you, there need to be optimism, but within reason. You have to be willing to work towards accomplishing your goals or it will not be achieved.
Every goal must be set to a specific time period. This will help you to measure your progress and keep you on the necessary path.
Your SMART business goal must answer the… What? Why? Who? When? How? Questions.