In my series on small businesses, this week I want to focus on goal setting. You might wonder why I have included goal setting in a business series but I believe that, without a target, it is very difficult to know what you are aiming at and how to get there.
Once you have set your goal, you can map how you will achieve your goal in easy, achievable steps. It is also easier to make sacrifices when you know what you are working towards.
So what are goals? Wikipedia describes a goal as “a desired result that a person or a system envisions, plans and commits to achieve: a personal or organizational desired end-point in some sort of assumed development. Many people endeavor to reach goals within a finite time by setting deadlines. It is roughly similar to purpose or aim, the anticipated result which guides reaction, or an end, which is an object, either a physical object or an abstract object, that has intrinsic value.” In short, a goal is a target you wish to achieve in different aspects of your life—business, personal, physical and spiritual.
‘Most “impossible” goals can be met simply by breaking them down into bite size chunks, writing them down, believing them, and then going full speed ahead as if they were routine.’ – Don Lancaster
Goal setting can include anything from writing down your goals to cutting out pictures and sticking them on a huge poster. Whichever means you choose, I would recommend at least writing them down. By writing down your goals you have 30% more chance of achieving them and, by regularly reviewing them, you have 80% more chance of achieving your goals versus never having written them down. We all differ—some prefer just the goal, and others prefer lots of detail around the goal. Choose what suits you best and add a time by when you want to achieve your goals.
Once you have your goal you can break it down into small, achievable steps. For example, your goal is for your business to have Rx turnover and employ 5-7 fulltime staff. To achieve it, you need to increase turnover, which can be done by converting leads into clients, by using social and print media. Once you know your target it is easier to focus on the how to get there. Review your methods and goal regularly to make sure you keep your eye on the ball and keep focusing on your goals.
A goal that is very close to my heart is saving. I know for myself that, unless I make it a priority, it will never happen. We live in a consumer driven society and, unless you are goal driven about saving, it can easily fall behind and never get achieved. I advise everyone to start by saving 10% of your gross income every month. If 10% is not doable start with 3% or 5% and increase it to 10%. Once you have successfully been saving for 12 months, you can divide the amount you are saving into emergency, medium term and retirement savings. For example, you can put 2% into emergency savings, 3% into medium term and 5% into retirement savings. The emergency savings can be used for any unplanned event such as a larger than planned car service. Medium term savings can be used towards a longer term saving such as tertiary education or a second home, and retirement saving is towards your retirement.
If you do not save you are living hand to mouth. By saving you are providing for your future; you are “paying yourself first”; you are putting money away for a rainy day, for your child’s university degree, or a second home.
Goal setting gives your business vision and direction, it gives you reasons why you get up early and work late. It enables you to make wise choices and sets direction for your business. Achieving goals requires focus, long term diligence, and effort.
I encourage you to set one or two days aside a month to firstly write down your goals and set achievable steps to achieve your goals, and then to regularly review your goals. By setting goals your business becomes your passion.
‘The great and glorious masterpiece of man is to know how to live to purpose.’ – Michel de Montaigne
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