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Why You Need to Set Goals for Business

By Edited Jun 4, 2016 1 2

Goal setting is one of the most important things you can do as a business owner. Without goals, how do you know you have achieved anything? It's the start of the year, and the perfect time to set some new goals for your business to work towards. It doesn't matter what type of business you have. Online or offline. Selling products or services. Local or international. All businesses will benefit from setting goals. Not too sure about that? Here are some of the ways you definitely will.

Businessman aiming at goals
Credit: bplanet/freedigitalphotos.net

Goals give you something to aim towards when running a business.

More Focus for Your Company

One of the biggest benefits of setting goals is that your company has focus and direction. Without goals, how do you know the work that you are doing is really worthwhile? Right now it may seem like you do a lot, but are you actually achieving anything? You could work 16 hours a day, but is that work really worthwhile or are you wasting a lot of time?

It is not just time that you could be wasting either. Without goals it is likely that you ar wasting money. You will spend it without determining whether it helps you towards your end needs. Something that seems great now could be a waste of time when you think about the direction that you want to take the business in.

This is not just about buying things or investing in services. You could waste money on hiring people. Since you feel like you are working too hard, you may hire a new member of staff to pick up the slack. However, without goals how do you know that is even worthwhile? Without goals how do you know which tasks to give this new employee?

Setting Goals - Quick & Easy Worksheet, Theory and SMART Goals!
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(price as of Jun 4, 2016)
You can't just set any goals. You need to set SMART goals for your business. Learn more about the SMART goals that you can set in Setting Goals by John James Santangelo.

Gain More Motivation

Everybody struggles with motivation now and then. Even the most successful people will have a difficult day--nobody is perfect. The difference is in setting goals for business. By having goals, you have a source of motivation. There is something to work towards and keep aiming for. Every step taken is worth it and will get you closer to reaching the end point.

This is great for employees too. They know they have something to work towards. While there may be no financial reward at the end, there is the sense of pride in reaching that end target.

Get a Result Sooner

By knowing what you want to achieve,  you are more likely to achieve it sooner. Once the goals are set, a plan can be created to work out the steps to reach them. Only tasks that will really help will then be performed, leading to a quicker outcome.

If the business is larg enough, it is possible to have multiple goals. Different departments can work on the different goals, again cutting time down to achieving them. There is more time to spend doing the things you enjoy, whether later in the day or at some point during the year.

Tips for Setting SMART Business Goals

Ability to Create a Business Plan

All businesses need a plan. This not only sets out the reason for the business. It helps with securing funding and getting investors later on. Setting goals for business helps towards creating the business plan. The above reason has already mentioned the ability to create a plan to get things done, but a business plan does more. It helps to create a financial plan, a marketing plan, and much more to be able to reach those goals.

Any business that starts without a full business plan will find it harder to succeed. Within six months, most money is spent and it is hard to gain funding without showing the aims, the competition and how that money is going to be spent and paid back.

Sinking Plans
Credit: Stuart Miles/Freedigitalphotos.net

Not having business goals will lead to your business plans sinking.

A General Reason for Existing

What is the reason for the business. Most business owners have a reason for their start-up. It could be to offer their services to the general public, to create a new and innovative product, or just to work from home without a boss breathing down their necks. There is really no right or wrong answer--it is whatever will drive you. Whatever it is, though, is the reason for the business to exist.

If there is no reason, then you may start to wonder why you are even bothering. This links to motivation and the point about wasting time.

Goals are more than just what you want to achieve in your business. They set out the steps your business will need to take, and improve motivation considerably. Now it is up to you about how you set those goals and how far into the future you consider them. Some businesses may want to set their immediate yearly goals, while others think five or 10 years into the future. There is no wrong or right answer, as long as you have them!

The Business Planning Guide
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Once you have your goals all set, it is time to focus on creating your full business plan. This book covers all the steps you need to focus on creating the best plan for your company to help keep focused and gain investors.
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Comments

Jan 15, 2014 11:13pm
Owriter
I agree, motivation is a driving force for every business. Sometimes it is hard to keep afloat but still it is workable. Great article!
Jan 16, 2014 1:06am
aingham69
Thanks, Owriter. You're right, it can be hard to keep afloat and I've been there. If it wasn't for the goals and the plan, I wouldn't have gotten past it. The goals gave me something to work towards and the plan gave me the steps to do it. It needed tweaking slightly but at least it was there.
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