Business Goal Setting
Business goal setting will help your business be
goals and measuring actual performance can
dramatically improve the
performance of large corporations, small businesses, and one-person website
I use it effectively for this south of Flagstaff Arizona
Business goal setting is an effective management tool. It's used
widely in "big business" and in other organizations of every size and discipline.
- For-profit businesses
- Non-profit organizations
- Government agencies
The reason successful people use business goal setting is so widespread is simple... it
||Click on the box...
and have Google start putting money in your bank account!
People are naturally competitive, and business
even more so. Setting goals takes you from the abstract "being
successful" to having specific targets to achieve.
Even if you should fall short of some business goals,
you'll have come closer to success than those people without specific targets.
Business goal setting is a very helpful tool that
you should use in managing your company, even if yours is a one-person
For several years I operated the performance monitoring
program for a nine billion dollar enterprise with thousands of professional and
technical employees. Now I set goals and track performance for my
websites and rental homes.
Business goal setting is the front half of the tool. Tracking
performance is the part that helps you achieve those objectives... and gives
you early warning when you're not achieving them.. We'll talk in detail about performance
monitoring on a following page.
Business goal setting is not a big mystery, nor is it
difficult. It isn't even time consuming, but there are a couple of things you
should do first.
You should define the reasons why your business exists... yes, write a simple
mission statement. And then you should do some basic planning.
Follow this link to the Mission
After you've defined your business's reason for being
and have then done some planning,
you can set a few goals. These should be expressed in
numbers. A larger company might have a goal such as:
Reduce OSHA Recordable Injuries by 10 percent
Business goal setting will cover every critical aspect of
an enterprise's operation... but not much more.
I try to limit my goals to six per enterprise. Even large corporations should
limit the number of goals they adopt. You want the tool to work for you, too many goals
will have you working for the tool.
When setting goals, keep this thought in
mind... In a for-profit enterprise we keep score in money.
A primary set of goals will focus on financial performance, and that means
budgets. Budgets are a product of the planning process.
For instance, I plan and budget for routine maintenance on our rental
homes. I also plan and budget for big ticket items like a new roof or carpet in
a particular property.
Every enterprise of every size needs budgets, and if you have a budget...
you have a goal!
A revenue budget and an operating expense
budget are musts. A larger enterprise may also need a payroll budget, overtime
budget, capital budget, and possibly other
special purpose budgets.
A budget-related goal for a one-person company might read:
"Keep 2004 operating expenses within the
established $16,300 limit as detailed in the Operating Expense Budget."
It may be a feel-your-way process in your first few months of operations, but it is helpful to have
when you start up your enterprise.
Your goals must share these features:
A goal like "Make more money" doesn't meet the criteria
above. The goal should include a time frame and be measurable. "Achieve a
net profit of $70,000 in 2006." is specific enough to build budgets around.
Now you can do some detailed planning and build budgets. During this phase you
that you must adjust your goals to make them achievable.
After you've established goals, you need to decide what
to measure as indicators of how well you're succeeding.
Establish specific targets and track
monthly performance against them. If you track performance as you go
along, you'll know which parts of your operation are weak and need more attention.
Follow this link for more on business
A Google search using
the keyword phrase business goals will lead you to a variety of
resources. Be sure to notice the relevant ads down the right side... those are resources
They don't have to be fancy or complicated to be
Business Performance Page
indicators for Small Business
Business Performance Program
Performance indicators for Large Business... and how to set up and
administer the program
Critical performance indicators for web site
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