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Why goals are important

Setting goals is an important part of running a successful business. They can help you:

  • focus on what's important
  • motivate employees
  • give you specific targets to work towards
  • track if your business is succeeding. 

Clear, well-defined goals help you take control of your business’s direction and achieve your larger business aims.

Setting SMART goals

Specific, measurable, achievable, relevant and time-bound (SMART) goals help you focus your efforts and make it more likely you'll achieve those goals.

Consider all these aspects when setting your business goals. 

Specific

Be specific about what you want to accomplish. Specific goals have a much greater chance of being achieved.

Ask yourself:

  • What do I want to accomplish?
  • Why is this important?
  • Who needs to be involved?
  • Where will this happen?

Measurable

Setting measurable targets helps keep you on track and know when you've reached your goal.

You can use specific data, such as money saved or number of customers. Or you can measure things like customer sentiment using feedback and surveys.

Ask yourself:

  • How will I know I have achieved this goal?
  • What target am I aiming for?
  • Where can I get the information I need to measure progress?

Achievable

Your goal needs to be something you can realistically achieve with your time, money and resources. If it's not, try changing the goal to something more achievable. 

Ask yourself:

  • What do I need to do to achieve this goal?
  • Do I have the right skills?
  • What resources do I need?
  • Does my business have these resources? If not, can I get them?
  • Are there any external factors that could stop me achieving this goal?

Relevant

Think about the big picture and make sure your goal is relevant to the direction you want your business to go in. 

Ask yourself:

  • Does this align with my other efforts?
  • Does it actually help with my broader business aims?
  • Is it the right time to be setting this goal?

Time-bound

Set a specific timeframe to achieve the goal. This helps you and your staff stay on track and make sure the work gets done.

For larger goals, set smaller milestones along the way. 

Ask yourself:

  • When does the goal need to be achieved?
  • What can I realistically do in this timeframe?
  • Can I break this goal up into smaller steps or milestones?

Example of a SMART goal

General goal: Increase revenue from my gardening business.

Specific: Increase revenue by getting more regular fortnightly clients.

Measurable: Get 4 new regular clients without losing any of my current clients

Achievable: People keep asking my local nursery to recommend a gardener, showing there is a demand. I have 4 regular spaces available in my fortnightly schedule. 

Relevant: More regular customers will help me grow my business, increase my income and become a leading gardening service in the area.

Timely: Achieve this within the next 2 months. Start by putting flyers at the local nursery and shopping centre this week.

SMART goal: I will get 4 new fortnightly clients for my gardening business in in next 2 months. I'll do this by putting flyers at the local nursery and shops. This will help me to grow my business, increase my revenue and become a leading gardening service in the area.

Achieving your goals

Once you’ve set your goals, you need to work out exactly how to achieve them. Here are some things to consider when planning how to achieve a business goal:

  • Actions – Describe the individual actions you'll take to reach your goal.
  • Timeframe – Set a realistic deadline for completing your goal and any milestones along the way.
  • Resources – Detail your budget, staffing requirements and any tools or supplies you’ll need to accomplish the goal.
  • Accountability – Share your goals with your staff, customers or a group of people you trust. They can help you to stay on track and make sure you're working towards your goal.
  • Review – Decide how you will measure success for your goal. Set time aside to regularly review how you are tracking towards it. Think about actions you can take if you are not on track.

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