When it comes to running a company and managing a team in order to create the most successful outcomes possible, it can often be confusing to know how and what to do to structure your business goals effectively.
Whether you’re a start-up company or hitting plateaus in your company, it may be worth looking into creating a consistent update of the goals that you want to achieve.
But, how do you set business goals and objectives? What structure can you use to be most productive? These are just a couple of questions we’ll be answering in this blog. Read more to find out more about setting specific business objectives and goals.
What are Business Goals?
With all this in mind, to create successful and sustainable businesses – all of the most elite businesses have set goals in mind that they need to achieve. These business goals are precise elaborations of what your business wants and will achieve within a certain time frame.
These set business goals are more detailed than the overall mission statement – as the goals can be broken down into little increments, whether that be a small goal every day, a monthly goal, etc.
Having business goals that are time-bound and achievable will give you the formula to grow your company in the right direction. But is there a difference between setting goals and to set business objectives when it comes to growing your business?
Is There a Difference Between Goals and Objectives?
The simple answer is yes, there are differences between the two in terms of results and planning. Therefore, you have to make sure that you have different and effective strategies for both. But what are the differences?
With business goals, it will be a lot more broad and generalised – meaning that they will be more of a long-term goal strategy. After establishing what you want your business’s goals to be in the long run the objectives should be integrated into your goals as a way of achieving them. Business goals are the holy grail of what the business wants to reach.
On the other hand, business objectives are more specific and set short-term financial goals way of reaching the bigger goals in smaller steps. These are milestones that essentially help you track your progress on the way to reaching the goal as a whole.
Let’s say a business’ goal was to get increase their sales by a certain amount each month – perhaps you will set little objectives along the way. For example, you may decide to advertise more to reach more potential customers and retain your current community when selling your services/ products.
These little objectives can be the difference between the end goal being reached or not if you correctly set them. But, how do you set goals and objectives effectively? Are there methods you can use to set goals and objectives properly?
What Methods to Use When Setting Business Goals and Objectives
Once you have gathered data on your business, can see where it stands in your market and how you can grow within your industry – then this is when you can start planning out your accurate and attainable goals. Here are some methods that are perfect for short, mid and long-term business goals:
SMART goals are a commonly recognised structure for setting out business goals within the top businesses in the world. Knowing what this means and applying it to your business will give you the edge you need to succeed over other businesses in your niche.
First of all, the acronym of this effective goal-setting method stands for Specific, Measurable, Attainable, Realistic and Time-Bound. The way the business evaluates and defines these separate parts is as follows:
Specific: The goal that you set needs to be clear to your staff in what you want to do, so is it easily explainable to your staff? Having specific steps and actions that go towards implementing and applying to move forward with these goals is an essential part of the SMART strategy.
Measurable: With the measurable part of the acronym – you must be able to track your progress on how far along you are coming with the set goal. Are you implementing a tracking system with everything that you are doing?
Attainable: When researching competitors in your market or just doing homework about the industry in general, you will need to make sure that the goal you’re planning to achieve is attainable. If not, then that leads to the next part of the goal-setting process.
Realistic: Taking into consideration that there will be several factors that affect your progress along the way – are your goals going to be realistic? If there are a few factors that may affect your progress – then your goals need to be given more thought and made sure they’re achievable and realistic to your situation.
Time-Bound: If you don’t have a timeline for when your goal needs to be achieved – then it will be hard to track progress and motivation and discipline will be lost in the process. In essence, a time frame to complete your task/ goal is paramount to reaching the desired goal.
In addition to the SMART goal process, there is also SWOT analysis which a business will use to measure the improvements they’re making – or the areas they’re good or bad in. The acronym for this method stands for Strengths, Weaknesses, Opportunities and Threats. Here is a breakdown of the elements in this analysis:
Strengths: This is where you will go through what your business is good at and what is currently working in your business strategies.
Weaknesses: You may have elements to your business that need improving and noting these down within your SWOT analysis is essential for future growth.
Opportunities: These are the potential ideas within your markets, processes, products and many more factors where your business could have the potential to grow. For example, you may see a gap in the market to promote a certain product or service (which is an opportunity).
Mark is a multi-award winner in business networking and relationship building. He is passionate about coaching and mentoring business owners and professionals through 1-1 & group coaching, team performance workshops and group mastermind sessions.