- Aristotle

Successful business people know how to set goals, make plans and execute those plans. Goals are drivers for success. Without goals it is uncertain how you are going to achieve success. There are many different terms used to express goals such as vision and mission often used in the corporate business world. They are all goals or desired future destinations. Ask yourself the question “Where do I want to be 5 years from now with my business?”. This is a very simple question but it is not easy to answer it. Are you driven by profit only or there are other things you want to achieve along with your business?

Research on goal setting has shown that goal setting leads to improved business performance – it is the basis for success in business. Before starting your business you should take some time to think about what you are trying to achieve with your business. This is the first step you need to do before you develop your business plan. Business plans and strategy development are means for achieving business goals but they are not goals by themselves.

Once you start your business your employees expect you to set individuals goals for them and they need to understand the big picture of your business. Going to work without clear goals and expectations create frustration and does not motivate employees to do their best. Setting clear goals for your employees will improve their performances because they will know what is expected from them and they will know how to do their jobs.

Dreams, ideas and creativity are all parts of setting goals. All successful businesses have started with a good idea but before they jumped into business they crafted their ideas to stand the market and customer test and position their business successfully in the marketplace. Converting creative ideas into specific goals and objectives is very important process and it is the key for developing a successful business. Successful businesses have targets they try to achieve and convert their vision in measurable and specific goals. These goals are defined at the company level, team or department level and individual level. Once goals at all these levels are very well defined then the business plan, budget and strategy are developed. Effective business goals allow you to track your performances and know how successful you are. Effective goals allow businesses to measure and compare themselves with other similar businesses.

Goals allow you to focus your time, resources and effort and they motivate you and make you work hard to achieve success. Effective goals are specific, measurable and action oriented. Once everyone agrees on the goals it is easy to manage your business and communicate with your employees. Goals help you to stay on track and always have the big picture in front of you. Goals are not set in vacuum. In order to be realistic (not only dreaming) you should develop a good understanding of the market you are going to do business in, understanding competitors’ way of doing business and most important of all understanding your potential customers. Once you develop a good understanding of your business environment you should work on setting your business goals. During the process of setting your business goals you should take into consideration the SMART rule of goal setting.

Effective Goals are SMART:

Specific – Goals should be specific, clear and easy to understand.

Measurable – Goals should be quantified / expressed in numbers.   

Attainable – Goals should be attainable. 

Realistic – Goals should be realistic. People who are supposed to achieve the goals should be able and willing to do that.