Tips for Setting Business Goals

Written by Emily Liu

On May 7, 2020

Running a small business is not an easy thing. Small business owners need to monitor every department of the company and make the final decisions for all business actions. Therefore, it is vital to have a set of business goals to let them know what’s the right direction for the company. Setting business goals is also essential for employees. It keeps employees motivated and helps them measure their progress. The following are tips that business owners should keep in mind when setting their business goals.
 

Use Goal Setting Framework

 
Creating business goals according to a specific framework can make the goal more reasonable and actionable. The first framework we recommend is OKR. The OKR framework consists of Objectives and Key Results. The objectives are something that the team needs to accomplish, and the key results are the metrics that measure how far they are from the goal. This framework maintains the clarity of companies’ focus and increases the transparency of each department’s progress. Another framework business owners can use is SMART, which stands for Specific, Measurable, Achievable, Relevant, and Time-bound. SMART provides business owners with a criteria list to help them ensure the quality of the goal.
 

Define the Long-Term Aim

 
The long-term goal is the objective that the company wants to achieve in three or five years. It is essential for every business. It not only describes the company’s overarching vision but also reflects the reason why the company is founded. Business owners can set their long-term goals related to profit increase, company expansion, or contribution to the community. Ensure that the long-term goal is realistic, but don’t be too cautious. According to the research, an audacious long-term goal can motivate and inspire employees. It makes employees feel more confident in the company and attracts more talented people.
 

Have Correct Short-Term Goals

 
If running a business is like a marathon, short-term goals would be the mile marker along the way. The short-term goal is something the company can do now or shortly. It has effects on a company’s long-term success. If a company sets the wrong short-term goals, even if they achieve all of them, they will not have the eventual victory. Therefore, business owners must ensure that their short-term goals are correct. When setting the short-term goal, they need to break them into various milestones, describe each milestone in detail, and write them down. This process helps them have a manifest train of thought to make sure that every aspect of the short-term goal is right.

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