It’s hard to believe 2016 is well and truly upon us. While the new year presents exciting opportunities for established and first-time business owners, it’s important not to get caught up in the excitement by making business resolutions without thinking about and planning how these resolutions can actually be achieved.
An important first step is to understand the distinction between a resolution and a goal. A resolution, as the name suggests, is a resolve or determination to do something. While a resolution is useful in providing a long-term picture of where you want to be, your goal(s) are the calculated steps you need to take to achieve this resolution. The best kind of goal is one that is SMART:
- Specific: the goal should have a specific purpose and focus
- Measurable: the goal should be able to be measured to monitor its progress and effectiveness
- Attainable: the goal should be challenging for your business, but achievable
- Realistic: the goal should be realistic within your means
- Time bound: the goal must fit within a time frame
For example, your resolution might be to increase profit. Clearly increasing profit is a great step forward for a business, but telling yourself you want to increase profit is not an effective target to strive toward. Instead, you could set a goal to achieve a 7% profit increase since last financial year by June 30 of this year. Unlike a resolution, this goal you have set yourself is SMART.
So as you start planning for the new year, remember that although making business resolutions may seem like a great idea, it’s important to break these resolutions down into SMART goals to get you where you want to be in 2016.
If you need help setting goals for your business whether you’re starting, growing, or selling your business this year, give us a call on 3862 8777 and our business consultancy team will be happy to help.