Guest Post by Kevin Foreman, Black Sheep Business Consulting, Business Plans + Strategic Plans in Vancouver, BC
Setting business goals – hard or easy? There have been various studies conducted to see what percentage of our goals are achieved. According to the University of Scranton only 8% of goals are ever accomplished. A sobering statistic for business owners looking to make the most out of a new year.
Which leads me to the topic of this article: “Setting Business Goals in 2021 That You’ll Actually Achieve.” Today I will share with you the five steps to ensuring you make goals that are not only achievable, but fulfilling.
1 – Ask yourself why?
Why do you wake up every morning and do what you do? Are you trying to provide a good life for your family, or is there more to it than that?
Maybe there’s an organization you support that needs your time and assistance with fundraising.
Maybe you work tirelessly, because you want the best for your team. You want your business to be so successful that your team has the opportunity to earn more, and advance the company without limitations.
Maybe your business is a part of our circular economy, and you want to advance sustainability at the corporate level?
Whatever your “why” is, make sure it is unapologetically your why. Make sure it is your purpose for getting up each and every morning. This will help shape your business goals.
2 – Develop a rough plan
Now that you have taken the time to realize your “why” you need to decide how you plan to make your goals happen. First, look out five years: where would you like your company to be?
Now, where should your company be three years out?
One year from now where does your business need to be in order to achieve your three and five year goals?
Write all this down. We will revisit it shortly.
3 – Know your environment before setting business goals
This article has been extremely simple up to this point.
Now we’ll do what the 8% of people setting business goals actually do: identify which industry we are in, and understand what type of a strategic environment your industry is a part of.
The reality is certain strategies are effective in certain environments. Most businesses have no knowledge of this and simply make goals and then walk out and try to achieve them.
“Your strategy is the roadmap to achieving your goals; therefore, your strategic style must be congruent with the competitive nature of your industry.”
Here’s an example:
Internet Software: Let’s say for hypothetical purposes that your business is in this industry. Your business goal is to grow gross revenue by 20% in 2021.
Your strategy to reach this goal is to focus on controlling costs by eliminating spending on research and development. Therefore, increasing your profit margin and enabling you to replace this spend on marketing, hence growing your revenue by 20%.
This strategy makes sense on paper, but not in the world of internet software. Why?
The internet software industry is incredibly unpredictable. With the snap of a finger one company can revolutionize how we go about our daily lives.
If your goal was to grow revenue by 20% you would need to actually invest into research and development to develop a technology that is disruptive to your industry.
I realize your business is likely involved in another industry. You may know your industry quite well, but you must understand the strategic style of your industry before you develop the strategy that will help you achieve your business goals.
With more on understanding your industry’s strategic style:
https://hbr.org/2012/09/your-strategy-needs-a-strategy
4 – Reevaluate
You know the reason why you’re motivated, and precisely what you want to achieve. You’ve checked your ego at the door and have done extensive research on your industry’s strategic style.
Now, develop the strategy that will help you achieve your 1, 2, 3 and 5 year goals.
5 – Set Key Performance Indicators
Develop quarterly key performance indicators to make sure you are on track to meet or exceed what you decided while setting business goals.
Now, make a list of each of your team members, and designate specific tasks for each of them to achieve every quarter.
You are going to review this plan. Remember, having goals that are achievable are incredibly valuable for boosting your team’s confidence and morale. Make sure your team has the tools and support for their success.
Lastly, organize a video call with your entire organization. This may include third-party marketing contractors. You want everyone you consider as a part of your team, or as an extension of your team to be here.
Welcome everyone.
Explain why you wake up every morning. Your why.
Now, explain where the organization will be in 5 years.
Next, review the competitive nature of your industry, whether it is classical, adaptive, shaping or visionary.
If you were in the internet software market you would explain that you must focus your efforts on research and development. You would state that you must establish a breakthrough technology because your industry is unpredictable (shaping). You would inspire your team to compete at the highest level for the sake of the organization.
Finally, explain how each team member will contribute, and work collaboratively to ensure your 2021 business goals are met.
Listen to your team. Get their feedback, and, if need be, adjust your plan. You and your team are going to do amazing things!
Cheers, and feel free to reach out if you have any questions.
Kevin Foreman
President, www.bsbcon.com
Black Sheep Business Consulting, Business Plans + Strategic Plans in Vancouver, BC