Most people have a goal in life. Whether you are an aspiring athlete, recovering from illness or a student – we all have something we are aiming to achieve. Irrespective of whether it is to run a personal best time, learn to walk again following an accident, or just to keep your head above water during exams, we have each set a benchmark. And it is this benchmark that dictates our path.
Business is no different.
Setting a goal in business is absolutely essential for a number of reasons. Not only does it fundamentally hold you accountable, but it also gives you a blueprint for your future direction.
Most people have heard of SMART goals – goals that are specific, measurable, achievable, relevant and timely. The reason SMART goals work is because they set a complete framework – there is no guessing, no moving the boundaries and no cheating.
Let’s take the athlete as an example. Just as a coach prepares regular training plans for his or her athletes, a business owner needs to prepare a business plan for his or her business. The two are absolutely identical in many ways.
- Identify your ideal outcome in real terms – whether it be to win an Olympic medal or increase profit margins by 25% over 12 months, you need to be specific
- Identify your constraints – Are there any problems you are facing? From injury through to limited human resourcing, you need to identify any current issues to ensure you can address them with an alternative option
- Identify your roadmap – Athletic coaches tend to write programs in ‘blocks’, with each block having a specific focus to achieve a specific outcome. The same applies to business – jot down some ideas of what you think is the most efficient route to your goal and set weekly, fortnightly or monthly targets next to each step
- Track your progress – Just as a coach consistently reviews heart rates, power outputs and timed results to tweak and improve on their programs, business owners need to do the same. If you aren’t seeing results, then there may be small changes you can make along the way to ensure you don’t lose momentum and remain on track for your goal. If you continue blindly without tracking your progress, you may find you have invested a lot of energy for little return
- Make your goal visible – stick it up on the wall, on the fridge, on your screensaver – it doesn’t matter if it is a photo of a Hawaiian getaway or a spread sheet, as long as it stays front-of-mind. You don’t want it to be out of sight because that’s when it drifts out-of-mind, taking you on an unplanned detour
- Share your goal – hold yourself accountable. Yes, it can be confronting to be up-front and honest about our goals. But you need to be held accountable. Too many business owners fall into the age-old trap of being self-employed and not holding themselves accountable to anyone (not even their clients, in some cases!) – these are the businesses that inevitably fail.
- Hire a coach – Ever noticed that athletes at the pinnacle of their career all have coaches? You will find that most successful business owners have one too. There are so many benefits apart from accountability – access to information, education, guidance (without the emotional attachment!), motivation, inspiration … the list is endless!
The important thing to note is that setting a goal and creating a business plan (or roadmap) to get there isn’t a five-minute exercise. It is something that must be well thought-out, achievable and meaningful. If it doesn’t hold relevance to you and your business, it will be meaningless!
All you need are the ideas. If you have a pro-active and accessible accountant, they should be able to develop it further with you.
If not, you know who to call!