The Importance of Goal Setting

Many people start a business with only a hope that it will prove profitable.  They may fail to think through the planning and goal setting stages that are critical to the foundation of a business. If you are going to invest your hard-earned money in a potential business, it’s vital that you start with a clear blueprint to guide your future decisions and actions.  Hundreds of studies have shown that people who write down their goals are far more likely to achieve those milestones than those who do not commit them to writing.

As you set goals for your business, don’t limit them to strictly revenue-based achievements.  Your goals should also apply to employee retention, innovation, service offerings, and other aspects of your operations.

 

 

Here are just a few of the perks of setting goals:

• They gauge success – When you look at your company from a broad perspective, you can see all aspects of your business and how they work together. A wide-angle view can help you assess how to help your business grow and become more competitive.  Goals can keep you focused on the big picture.  You may have small failings, but if you are making strides toward your overarching goals, you can see success.
• They unify the company – In the world of business, goal setting should not be a solo sport. Goals help leaders and their team get on the same page when it comes to a company’s trajectory. It should be a collaborative effort between the company team as a whole.  That way, everyone will be working toward the same end.  If everyone is onboard with the same goals, they will be more understanding of the rationale behind decisions.  For example, if a goal includes parameters for spending, individual departments will be able to see why certain expenditures can and cannot be made.
• They help companies reassess – Every business should periodically reassess its operations. Goals will serve as a guide for those reassessment efforts. You can sit down mid-year and evaluate your progress in working toward goals. If you are lacking, you can work as a team to figure out how to get back on track.

Some people are cynical when it comes to goals and resolutions.  They may not be a panacea, but their track record is clear.  Challenging and clearly written goals can lift a company to the next level and provide strong support in helping them achieve financial success.