Most business goals fail for two reasons: there are too many, and they never turn into this week's work. Fix those two things and goals start to work.
Start with where you are
Before you set a goal, look at your numbers. Revenue, profit, number of customers, how many come back, how much of your time goes where. You cannot plan a route without knowing your starting point. Your bookkeeping has most of this.
Pick three goals at most
For a year or a quarter, choose up to three. Ask: what three results would make the biggest difference to the business? Then let the rest go, for now.
Make each goal specific
A goal needs a number and a date. "Grow the business" is a wish. "Reach 15,000 dollars in monthly revenue by June" is a goal.
Get more customers this year.
Win 40 new customers from referrals by December.
The SMART checklist helps: specific, measurable, achievable, relevant and time-bound.
Examples for a small business
- Revenue. Reach 15,000 dollars a month by June.
- Profit. Raise net margin from 12 to 18 percent by year end.
- Customers. Get 40 new customers from referrals this year.
- Retention. Have 50 percent of customers buy again within six months.
- Cash. Cut overdue invoices to zero by March.
- Time. Spend no more than five hours a week on admin by April.
Turn goals into weekly actions
This is the step most people skip. A goal for June means nothing on a Tuesday in February. Break each goal into actions you control.
Goal: Win 40 new customers from referrals by December.
What drives it: happy customers who are asked.
Weekly actions:
- Ask every customer with a finished job for a referral.
- Send one thank-you note to each person who referred someone.
- Check the referral list in the weekly review.
There is a guide to asking for referrals if that is one of your goals.
Track progress every week
Put each goal's number in your weekly review. Watching the number weekly lets you correct course early, while there is still time.
Review every quarter
Every three months, look properly. Is the goal still right? Is the plan working? Change the actions if they are not moving the number. Change the goal only if the business changed, not because it got hard.
Write them down
Goals in your head shift with your mood. Written goals stay. Keep them with the rest of your business notes, where you will see them every week.