Do you want to own a profitable business? That requires a solid business strategy.
When you are starting a business, the main objective you have is to increase awareness and sales. The biggest mistake you have probably made is generalizing your goals and not making them measurable. This is where SMART objectives come in. You need to set SMART goals that are achievable and measurable and learn how to apply them to your business.
So what do SMART goals stand for?
- Specific
So, you want a million-dollar business that could churn a bucketload of money every hour? That’s great, but so do several other businesses owners. This is why you need to be as specific as possible with your goal. The possibility that your business concept is unique is pretty slim; there’s hardly ever anything new under the sun. However, you can ensure that your business is exceptional by creating a specific goal different from other companies.
A specific goal clearly states what is to be achieved, by whom, where and when it is to be achieved. For example, you would start a wig business where you sell at least 20 wigs at $200 each per month to middle income earning women in Chicago.
- Measurable
The big question here is, are your efforts quantifiable? For example, if you want to increase sales, you would need to sell more, but you can’t just leave it at that. Targets need to be set so that you’re able to know how much you require to sell for you to hit your sales target. Every department in your company should have quantifiable goals even if it doesn’t necessarily cause a direct impact on your sales.
For example, if you have a social media manager, their KPIs would focus on insights, how much engagement and growth do you expect per page in a given month, and if they spend any money, what is the expected return on investment?
- Achievable
Two things could happen when you’re setting a target, you either fix your goals too high or too low. Ideally, whatever you want your company to attain should be within your reach, and every area of your business should have attainable goals. When trying to see how much you can achieve, you must ask yourself if you have the budget to fully equip your employees with what they need to achieve their goals.
For example, you cannot ask a professional photographer to take high-quality photos if you have not invested in a high-quality camera. You must assess your limitations, strengths and weaknesses all at once for you to see if all your goals are truly attainable.
- Realistic
Before you jump the gun, you need to do your research and project how long it would take before you start earning real profit from your business. One shoe doesn’t fit all; it’s good to be realistic. Setting unrealistic goals may cause you and your team to be overwhelmed.
Manage expectations, and if you have staff, it’s best to ask them to provide them with realistic, attainable goals that they are sure they would be able to deliver.
- Time-Bound
For all your SMART goals to come to pass, you need deadlines and not just for you but everyone in your business. You may end up passing the time on Facebook watching funny memes, and you haven’t completed your report. Setting deadlines gives people time to work on their goals, but everyone must also remember that they are accountable for their work, which will help you know who is competent.
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