Business Goal Setting Made Simple
Business Goal Setting Made Simple: A Guide for Australian Business Owners
It’s crucial for business owners and entrepreneurs to look ahead and set their business goals for the coming 12 months. As we like to remind our clients, “Most people in life aim for nothing and hit it with amazing accuracy.” This profound quote underscores the importance of setting clear and actionable goals to steer your business toward success.
Setting financial targets and business goals can significantly impact your business’s trajectory. Unlike merely working hard and “hoping” for profit increases, establishing specific targets and formulating a strategic plan to achieve them is a proven approach to driving growth and achieving success.
Free download: Click here to get your copy of our Smash the Roadblocks to Profit Workbook
The Power of Goal Setting
Research consistently highlights the effectiveness of goal setting for individuals and business owners alike. According to a study by Dr. Gail Matthews, a psychology professor at the Dominican University of California, people who write down their goals are 42% more likely to achieve them; and businesses that set goals are 10 times more likely to succeed than those that don’t. That’s almost half!
For entrepreneurs and business owners, goal setting:
- provides a clear roadmap,
- identifies potential obstacles from the start,
- allows you to create a prioritised plan focusing on the right things at the right time,
- is a source of motivation, and
- improves performance.
Goal setting helps to transform abstract ambitions into concrete, actionable steps, ensuring that efforts are focused and aligned with the broader vision of the business.
So how do you transform your business and financial ambitions into actionable steps?
Your Annual Goal Setting Exercise
At The Hendrie Group, we recommend all business owners conduct a comprehensive goal-setting exercise at the start of each financial year, but the process can also be done at any stage throughout the year.
This exercise involves a systematic review and planning process that can be broken down into the following eight steps:
- Where Do You Want to Be: Define your vision for the business, your personal financial position, and your lifestyle. What are your long-term objectives? What does success look like for you?
- What That Will Mean for You: Consider the implications of achieving these goals. Write down how will this success impact your business, your personal life, and your team.
- Where Are You Now: Conduct a thorough assessment of your current business and financial position. This includes financial performance, market position, operational efficiency, and other relevant metrics.
- Define The Gap: What is the gap between where you are now and where you want to be? Identify the measurable differences between your current state and your desired future. This will help you pinpoint areas that need improvement or change.
- Identify The Obstacles: What lies between where you are now, and bridging the gap? Identify potential challenges and obstacles that might hinder your progress. These could be internal, such as resource limitations, or external, like market or regulatory conditions. It’s essential to acknowledge and document these, and not put your head in the sand about them, because each obstacle is simply a rung on the ladder you will climb to your goals.
- Brainstorm The Required Actions: Write down a list of potential actions and strategies that can help bridge the gap. Whatever comes to mind, document it. You’re just brainstorming at this point, not evaluating which task to do when. Potential actions might include new marketing strategies, operational improvements, financial restructuring, or product or service development.
- Prioritise and Date Those Actions for Completion: Organise the brainstormed actions based on priority and set specific deadlines for their completion. It can help to rate from 1 to 10 each action on:
- Ease — How easy the task will be; and
- Impact — The difference it will make
Multiply the Ease by the Impact for each action to give a Priority Score. The highest scored items go at the top of your list to be done first, unless there are other considerations meaning other tasks need to precede them.
This approach can identify some quick wins, as often you don’t need to start with the most difficult tasks. Dating and scheduling the actions too, ensures that your plan is structured and realistic.
- Implement an Accountability System: Put in place a support system to keep you on track and focused on completing the actions by their due dates. This involves regular check-ins, progress reviews, and working with a business advisor who can provide guidance and keep you on track.
Supporting clients in this way is our passion at The Hendrie Group.
The Role of Business Advisors
While goal setting is crucial, having the right support to achieve these goals is equally important. Many business owners see their accounting firm as merely a tax preparation and tax advice service. However, an accounting firm with business advisors, like The Hendrie Group, can offer much more.
The way we see it, our role is to help you win, not just keep the score.
Our team at The Hendrie Group specialises sees the core of our role in guiding clients as helping you set and achieve business targets, not just help you with your tax and compliance. (But sure, saving tax is important too!)
From working with many hundreds of business owners over the past 4 decades, we understand that each business is unique, which is why we tailor our services to meet each client’s specific goals. That’s why we always start there with clients: Where do you want to be?
Our business advisors work closely with you to develop and implement strategic plans, provide financial insights, and offer the accountability needed to ensure you stay on track.
Start Your Goal Setting Today
If you’re ready to set your business on a path to success, now is the time to take action. Start by engaging in the goal-setting exercise outlined above.
Contact us today after you download your complimentary copy of our ‘Smash the Roadblocks to Profit’ Goal Setting Workbook. This comprehensive guide is designed to assist you in systematically planning and achieving your business goals. It’s a great tool. Combine that with an accountability system, and your goals are right there in front of you for achieving, step by step.
Don’t aim for nothing!
Setting business goals is a crucial process that drives long-term success. By taking the time to define your objectives, assess your current position, and develop a strategic plan, you position your business for growth and prosperity.
Remember, aiming for nothing guarantees hitting nothing. Set your sights high, plan diligently, and watch your business flourish.
Reach out to The Hendrie Group today and let us help you turn your business goals into reality. Together, we can make this your best year ever.
