Did you reach any of your goals this year? How do you know?
Business goals are a necessary part of our work life. The actual process of goal setting helps us identify what we want to achieve. It better helps us understand and plan the actions necessary to take in order to accomplish the goals set.
It's been said, "A person who aims at nothing has a target he can't miss."
All great business people had short term and long term goals. Henry Ford's goal was for every person in America to own a Ford automobile.
First, the goal you set must be concrete and measurable. People set goals for all sorts of things. Here are some you might consider.
- Increase Number of Sales Made
- Increase in New Customers
- Increase Gross Revenues
- Increasing Gross Profit Margins
- Increasing Net Income
- Retirement Contribution Goals
- Increase Savings
- Decrease Cost Percentages
- Decrease Golf Score
It is important to have net income goals as well as revenue goals otherwise you may achieve the revenue goals but have nothing to show for them at the end of the year.
So, now that you have set your goals, how do you measure them? The best way is by using a budget to monitor your goals by comparing them to the actual figures reported on your income statement. The comparison of your budget (or goals) to your current progress for the month and year to date is a way to reward yourself and keep yourself on track in case you have slipped a little. Comparing this year's progress to last can also be very enlightening.
There is not a business alive that would not benefit from reviewing and analyzing their goals monthly. You need to know why you succeeded and you especially need to know the reasons for falling short.