Short Term Business Goals Will Lead to Short Term Success
One of the earliest and biggest mistakes that I made in my business was thinking and acting like I was my business.
Admittedly, I didn’t have any business goals, I just knew that I wanted to own my own business
I worked in every department: marketing, sales, delivery, administration…
When I was sick, the business was sick.
If I was too sick to work, my business didn’t work at all.
This was some Indiana Jones, seat your pants version of business building that I was making up as I went along.
Exciting at times but ultimately useless at helping support my life – or my family
My business was not born from a position of clarity about its overall purpose.
It was little more than an idealised replacement for my day job.
Separating Yourself From Your Business
You and your business are not the same things and you will obtain success a lot more efficiently if you strategically plan to separate yourself from your business as soon as possible.
It’s important to start this process by creating a vision for your personal life however for now let’s concentrate on creating a vision for your business.
It really doesn’t matter if you are starting a business or have been in business for a little while. This is an important exercise for envisioning your dream business.
Your thoughts and ideas about the possibilities and opportunities for your future business should excite you.
If they don’t, you should keep envisioning until you literally feel excited.
This business vision will include goals (what you want to achieve) and objectives (the actual steps you take to achieve your goals).
The Importance of Creating S.M.A.R.T. Goals
Let's take a moment here to discuss S.M.A.R.T. goals.
S.M.A.R.T. goals (and objectives) are easier to understand and measure.
Therefore, when creating your goals, ensure that they are:
Timely or Time-bound
Creating Long-Term Business Goals
For my business to become as successful as I imagined, I needed to set good long term goals and objectives.
But first, I had to understand the difference and relationship between goals and objectives.
This is what I learned…
- Goals are general statements about your desired achievement
- Objectives are the specific steps or actions you take to reach your goals
Examples of Long Term Goals For Your Small Business
These are the five long term business goals that lead to increased profits:
1. Increasing Your Qualified Leads
The number of people showing an active interest in your service or product
2. Increasing Your Conversion Rate
Percentage of qualified leads that become customers
3. Increasing Your Transactions
The number of times each person purchases your products
4. Increasing Your Average Sales Value
The average amount a customer pays for your product or service
5. Increasing Your Profit Margin
Percentage of your revenue left after taxes and expenses.
Using The Business Growth Calculator to Set Your Business Goals
Most business owners don’t have a clue about how many leads, sales or transactions they need to reach their profit goal in the next 6 to 12 months.
That’s why I created a tool called the Business Growth Calculator.
It will help you set goals that increase your leads, conversions, transactions, average sales value and profit margin.
How to Use The Business Growth Calculator
1. Add your number of Leads for the past year e.g. 1000
2. Add your Conversion Rate e.g. 25%
This will result in 250 customers.
Basically, 1 in 4 people that hear or see your sales message decide to buy what you are selling.
3. Add your average amount of Transactions per customers e.g. each customer buys from you once a month throughout the year.
4. Add your Average Sales Value e.g. each customer spends around £100 per transaction.
This will result in £300,000 in Revenue.
5. Add your Profit Margin e.g. you keep 25% of every sale you make (after paying taxes and expenses).
This means that you will have £75,000 in Profit.
Small Increases Equal Big Returns
Finally, use the buttons in the top right-hand corner to discover what will happen when you increase these five business growth areas by 10%, 20% and 50%…
Your Business Structure
What Business Structure Do You Need to Achieve Your Vision of Success?
We need to discover and define the business structure that you are going to use for your business.
Far too often, business owners are too quick to jump into creating a business, without reviewing their overall business structure.
Many times, business owners become stuck when they realise their business isn’t gaining the traction that they desire.
Many of us start a business of one with no one else helping us or working with us.
However, that doesn’t mean that we shouldn’t allocate time and energy for creating and focusing on a strategy for our business.
All too often, the process of creating a business vision and business mission are completely ignored by solo business owners and solo entrepreneurs.
They start off on their business building journey without a clear destination or any clear idea of how to get there.
Your Business Vision and Purpose
Your business vision and business purpose are your personal success GPS.
They guide your business – especially at those times when you are unsure about what to do next or why.
Creating long-term business goals begin with you affirming WHY your business in is the marketplace.
This means thinking about your business purpose.
For example, if your business purpose is to help female entrepreneurs overcome their emotional obstacles so that they can unleash their potential and achieve their revenue goals.
Your mission objective could be to help 20 female entrepreneurs transform the way they think, feel about and operate their businesses so that they can generate 5 figures in revenue.
Your mission objective is the measurable metric or result that confirms that you have reached your purpose.
We then want to list out the ways that you can help someone achieve this.
What we’re doing is creating options for using our business to achieve our mission and reach our purpose.
We are creating different methods to serve our market.
Business Purpose Examples
One of your ultimate business goals has to be realising your business purpose.
This begins with the creation of a business purpose statement.
A purpose statement answers the “why” in “why are you in business?” – What Is a Business Purpose Statement?
Here are some example business purpose statements:
“Empowering people to stay a step ahead in life and in business” – ING
“Nourishing families so they can flourish and thrive” – The Kellogg Food Company
“To help people manage risk and recover from the hardship of unexpected loss” – IAG.
“To help people use empathy, strategy and technology to build businesses that positively change their lives and the lives of others” – Kase Dean Limited
What is your business purpose?
Creating Business Goals Worksheet
Okay, that is a lot of information and work related to setting business goals.
Here is a resource to help you…
Download this worksheet and answer the 16 questions that will help you define your purpose-driven goals, vision, mission and purpose for your business and your clients.
Get Personalised 1:1 Help Creating Your Business Goals
If you would like help creating your game-changing business goals, click the green button in the top-right-hand corner of this page.