More than 80 percent of 300 small-business owners surveyed said they don't keep track of their business goals, and 77 percent reported that they failed to achieve their vision for their company, according to the fourth annual Staples National Small Business Survey. Establishing business goals involves an introspective assessment to determine what makes your business successful, and where you need to focus your energy. Because of the struggling economy and business owners having to perform more tasks with less resources, devoting adequate time to goal development is challenging. However, investing the time to focus on profit, growth and service will help your business succeed.
Instructions
Getting Started
1. Distinguish long-term goals from short-term goals.
This is accomplished by first establishing your company's mission, vision and values. Once done, create a separate list of long-term and short-term goals. Each of your goals should align with your mission statement and should be focused on accomplishing your long-term ambitions.
2. Make your goals measurable.
Specify how your goals will be measured. For example, a goal to increase revenue is not measurable; however, a goal to increase revenue by 10 percent is. "The fact is that when businesspeople set measurable goals, they are much more likely to attain them," columnist Ray Silverstein wrote in Entrepreneur magazine's edition of May 27, 2009.
3. Use creative planning strategies.
Take an inventory of the business assets to include staff resources, facilities needs, production capability, customer base and satisfaction levels, and marketing and sales approaches. Use this inventory to identify creative deployment options to increase sales volume.
In addition, identify the top-selling products and services and consider how you can increase sales by including additional customer groups that would benefit from these successful services and products. Think out of the box.
Profitable Business Goals
4. Focus on profit.
Commit to increasing profits by a reasonable percentage. Setting unrealistic goals will only increase stress and hurt morale, especially if you or your sales force is commission-based. To achieve a profit increase, make a commitment to take at least two hours per day to make sales and follow-up calls to current customers. Project sales and expenses to predict performance. Determine staffing demands based on production requirements, materials that need to be purchased, equipment, new technology and the necessary inventory for goods and supplies. These expenses will be subtracted from your projected revenue increases to determine your net profit.
5. Focus on growth.
Balance the size of the staff based on the business needs, along with the fiscal ability of the company to support those needs. Set goals to hire a work force that possesses numerous competencies and the ability to multitask. Identify strategies for attracting and retaining top talent. Make it a priority to educate and train new and existing employees. And plan to create a curriculum that not only aids employees in skill enhancement, but also provides education about the company's long-term goals.
6. Focus on service.
Make customer interaction a priority. Don't stay behind the desk the entire workday. Be proactive and nourish relationships with current clients and potential future clients. Make it a priority to let customers know you want to exceed their expectations to outpace the competition.
7. Focus on budget.
Construct a comprehensive budget that lists the total costs of operating the business. Operational costs include fixed and variable expenses. Substantiate ongoing expenses for your budget such as marketing and advertising, service charges, vehicle expenses (maintenance, lease and gasoline), cleaning, utilities, website updates, printing and reproduction, insurance (vehicle, building, liability), office supplies, consulting services (1099 employees), postage, professional fees (attorney, CPA), building and grounds (repairs, security and rent), payroll (actual payroll, workers' comp insurance, payroll taxes), travel and entertainment (meals, travel, airline, hotel).
This budget can be developed and kept on a spreadsheet, or in various accounting software. Monthly comparison to actual expenses is imperative. Your budget is a living document, and it might have to be modified as your business and financial pictures change.
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