Setting the right business targets can seem daunting, but it need not be. We will help you to choose the right targets for your business, and provide tips on how to reach them.
Why targets are important
The first thing that we want to make sure of is explain why setting business targets is one of the most important things you can do. It’s because targets give you a goal to aim for, and help you measure your progress along the way. Many small businesses set their goals too high and then struggle to reach them. In this blog post, we’ll show you how to choose the right targets for your business and give you tips on how to achieve them. So, whether you’re just starting out or looking to make a change, watch the video or read on for inspiration!
What kind of targets you should be setting
I’ve seen many businesses make the mistake of setting only financial goals. The trouble with that is that it doesn’t give us the complete picture. The reason why you’re not achieving your goals might of a different nature than pricing or proper markups. It could, in fact, be some kind of issue with the quality of the product, or perhaps something entirely different.
This is why, business owners need to include non-financial goals as well. To be able to see how successful a company is, you also need to be looking at factors like:
- Customer satisfaction
- Returning customers
- Staff loyalty, etc.
Setting business targets – choosing the level of difficulty
We could look at three options in terms of how difficult the business targets you’re setting for your company.
1. Setting business targets that are too easy
Should you be guilty of this, then you could be facing with one of the following issues:
- You could end up being more relaxed than you really should be because you’ve easily reached your goals. This can lead to putting in less effort in the future. And the same would go for your team. So, the consequence of that is that it leads to demotivation. I’m guessing a very laid back team isn’t what you’ve envisioned – as it doesn’t scream success.
- There’s also the chance of you becoming too cautious when it comes to setting your next year’s goals. You may be drawn to setting the same business targets again just because reaching them is within your comfort zone.
2. Setting business targets that are too difficult
Naturally, some business owners may do quite the contrary, and set business goals that are too challenging i.e. difficult or impossible to accomplish. If you happen to set targets that are too demanding, it may be that:
- You’ll most likely (or always) fail because they’re unrealistic.
- You won’t get any insight – there’ll be too many discrepancies between the goals set and reality.
- You and your team will get demotivated because no matter what you do, you’ll never be able to match the desired outcome.
3. The right way to go with business targets
So how do you find the sweet spot?
What you should be aiming for when setting the right business targets for your company is adding a challenging element that pushes you a bit further. This means that you’ll look at what targets have been reached and set ones that are slightly higher. This kind of challenge will not discourage you or your team as it will be perceived as feasible.
In order to hit your targets, it’s important to set the right ones and at the right level. You don’t want to set them too high and then struggle to reach them – that can be demoralising and lead to a lot of stress. On the other hand, you also don’t want to set them too low and not challenge yourself. The key is in setting business targets that are a bit stretching.
Once you have your targets in place, it’s time to start achieving them!
If you want that for your business, but you find that your relationship with your numbers is not the best, then grab a copy of my book I Hate Numbers. According to one reviewer:
“This is the best, most straightforward, pragmatic and enjoyable book I’ve ever read on finance for business. It’s a must-read for all entrepreneurs. Your clarity, humour, wisdom and great advice shine through as you make numbers accessible and easy for everyone.”
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