These 3 key areas should be assessed on a regular basis. When I sit down with my clients one of the first questions I ask is “what are the business goals that you want to achieve by the end of the financial year? It is important to consider where the business is going and what needs to be achieved. I look at 1 year planning, 3 year planning and 5 year planning.
Business goals setting for 1 -3 -5 years will give clarity to those areas of importance. Goals need to be defined, specific and measured. We can’t manage what we can’t measure. Hazy goals will give hazy results. It’s a no brainer really; being clear about what has to be done is also good for motivation and commitment. Make sure the business goals are well researched with supporting information.
Financial goals setting for 1 – 3 – 5 years. Know the numbers and work out what Gross turnover, Gross Profit and Net profit is needed. What is also important is know the cost centers of the business, so analyze the running costs; made up of fixed costs, variable costs and semi-variable costs. This way it is helpful in understanding they have on the cash position. Forecasts are helpful in seeing ahead some of the impacts business initiatives have on cash flow, and net profit performance.
Personal Goals setting for 1 – 3 – 5 years. Does the business run your life or are you in business to support your lifestyle? It is worth giving careful consideration to how close we are to the business? It is a good idea to discuss with family the business commitments and the impact it is likely to have on family time. I have found through trial and error, organizing work and family time can be achieved. I used to double book some of my social events with business commitments until my family and I sat down and planned our lives better.
In summary, it will really help your business if you are specific about what needs to be achieved. Goal setting does work if you work at it and review them regularly.