Objective:
- Develop and understand SMART Business goals and objectives (Specific, Measurable, Achievable, Realistic and Timebound)
- Give a framework within which to work to achieve business growth
Setting goals is the clearest way to measure the success of the business.
Overview:
The activity is designed to assist the entrepreneur/ small business owner to define SMART business goals and objectives,especially before starting, and use them as an ongoing powerful tool/process for a successful business.
Activity:
This is broken to four smaller step by step tasks to assist understanding of meaning and differences of goals and then how can be set.
Does the entrepreneur/ small business owner understand the differences between:
- What is the personal goal? = ( I want to set up a business )
- What is the business goal? = ( I want to make my business successful )
Does the entrepreneur/ small business owner understand the differences between:
- What is the business goal?
- What is the business objective?
Aim = WHAT your business plans to do/achieve
(Business aims describe what a company expects to accomplish over a specific period of time).
Objective = HOW you are going to achieve your aims.
(Objectives help to rule out actions that won't contribute to achieving the goals set and are influenced by time tables usually incorporating deadlines and quantifiable measures)
This third stage is to present to the Entrepreneur an example of a business goal and objectives, as follow:
Aim: To provide a highly competitive cleaning service
Objectives
- Review all feedback from customers;
- Inspect and monitor all completed cleaning services;
- Review our cleaning rates monthly.
Instructions
This stage explains the importance of setting at least three business aims and their objectives (tools and actions to achieve those aims) for the business
Life-time. In depth explanation on level of business aims is required at this stage. The difference between short-, medium- and long-term objectives is the time frame of each. It’s best to tackle one goal at a time.
- Short term business aim
Short term is a period of time of less than 12 months and is the foundation steps necessary to achieve the longer-term future aims for the business. Short-term goals are generally smaller in scope and achievable in the more immediate future. Short-term objectives are generally those relating to that financial year, in a time frame from start to the end of the year
- Medium term business goal
intermediate business aim take slightly longer and more of a financial commitment
Medium-term aims are generally those that relate to a period from 18 months to three years or sometimes five years (whichever is appropriate for the business and people setting the aims). These aims will therefore be broader, can be reviewed and may need to be amended with time.
- Long term business goal
Long-term goals usually should have a time-line of about three to five years to accomplish and require a disciplined saving and investing strategy over a long time period.
The final section is a practical exercise can be done in a small group or by an individual. Ask the Entrepreneur / small business owner /group to consider their business idea and think and decide on at least three important business aims that they intend to achieve in the next 1-5 years, set priorities of those aims and break them down to:
- Short term business goal
- Medium term business goal
- Long term business goal
To assist the small group or the individual completing this task/exercise of setting up/drawing their business aims and objectives, further examples of business short, mid and long terms and objectives for a Training & Development Company is given here:
Short Term Goal:
To establish working links with SME’s and professional individuals in the region
Objectives:
- By joining the local chamber in (January) and establishing links with SMEs members of Chamber of Commerce and attend meetings
- By networking with non-Chamber SMEs locally and regionally ( Dec – June)
- By producing information pack detailing business services (by December)
- By building connections via professional social media and website – (December)
Mid Term Goal:
To provide a range of quality tailored services for SME’s and individuals
Objectives:
- By offering a free ½ hour consultancy to selected SME’s individual requirements
- By implementing a set of standard procedures that can be tailored to suit organisations/individuals
- By conducting in depth need analysis, reviews and solutions tailored to each business customer needs and requirements
Long Term Goal:
To grow and expand the business
Objectives:
- By acquiring offices for a training centre (year 3)
- By recruiting additional staff (year 3)
By providing wider range of services/training activities (year 3)
Skill Development:
Developing business strategy skills and planning for the future by setting clear defined business SMART goals, Identify and apply methods of attainment. Clear understanding of what to working towards and trying to accomplish/achieve and can possibly modify goals along the way as changes happen or achieved. This increases confidence and present greater chance of business success by demonstrating planning for the business to improve, grow, and become more profitable.
Resources:
- Post-its or similar sticky pads
- Pens
- Papers/pads
- Flip charts