Goal Setting, Why?
I have worked in many different types of businesses and I have found the ones that are most successful are those small businesses owners who focus on setting goals. They are focused in 3 key areas; Financial planning, market planning and customer service. Financial planning within a small business does not address investment strategies. Although investment planning may be part of your financial planning, it’s only one piece of a larger puzzle. These goals for small business owners are similar to larger business goals, but are uniquely challenged by having only one or two people involved in making them a reality.
Goal Setting Examples:
Financials goals could include debt reduction, purchasing equipment/software to make your business run more effectively, planning for leaner times or vacations, or planning for paying taxes timely. The list will vary from business to business.
First Things First:
Realistically, financial planning cannot be done effectively without having up to date financial information and for small business owners this can be challenging. While focusing on doing business, the priorities of keeping financial information upto date is often buried under a heavy customer centered to do list. Financial planning should ultimately lead to market planning and market planning should lead to assuring customer satisfaction.
Accountability and Goal Setting:
Every business owner has things they want to achieve financially and the best way to achieve this success is to plan for it. Once you have decided to start the process of goal setting, you need someone to help you set goals and then be accountable to your goals. They are your goals and you are working to achieve them, so having someone help you prioritize and track progress will help you be a more successful business owner.
Ultimately, if you start this process you will achieve a better financial picture and a more targeted approach to your business. All small business owners need someone on their team who will help them achieve success and keep them accountable.
What’s The Alternative?
You can simply close your eyes and throw darts at your chances of success. According to Georgia McIntyre at Fundera Ledger: “About 80% (four-fifths) of businesses with employees will survive their first year in business. (The most recent data shows that of the small businesses that opened in March of 2015, 79.9% made it to March of 2016.)” This information was taken from Bureau of Labor Statistics’ Business Employment Dynamics.