Whether expressed explicitly or not, most small business owners and managers have goals for the business they would like to achieve. When developing a business strategy, goals need to be defined in the early stages of the process.
When embarking on a growth phase, goals are particularly important so all staff and key stakeholders understand where the business is going and what needs to be achieved.
Business goals should be:
- time bound – goals should be set with a timeframe for achievement in mind. They can be set for one or more time periods (ie 12 months, 2-3 years or 5 years +), and linked together. Goals expressed for time periods under 12 months, are generally considered to be business objectives or targets and will be part of a business plan
- formulated to achieve the company’s vision and mission
- easily understood, clear and concise, but can also be broad in scope
- realistic and achievable, given the company’s resources
- measurable, so they can be tracked and judged whether they have been achieved
- meaningful in that achievement of the goals will make a considerable difference to the company. It is best therefore that goals are outcomes focused versus input driven.
Goals can be financial, reputational, cultural, customer focussed or even community based. Along with goals striving to achieve the company’s vision and mission, they must also be aligned to the company’s values.
Goals should be seen as opportunities for the company, not a burden that is out of reach or a fanciful suggestion. Goals can be established for the entire company and/or for individual business or operational units. They can also provide a framework for developing key performance indicators (KPIs) at a company, business unit or individual level.
The most important aspect of developing goals is gaining commitment to achieve them from everyone involved in the company. Therefore, good communication during the developing process is needed, and once confirmed they should be shared widely and openly discussed.