Did you know the majority of start-up businesses fail within their first 5 years? According to experts, a big reason behind this is many business owners fail to plan ahead. Without adequate planning, it’s easy to lose direction and become overwhelmed by the day-to-day running of the company, a sad but common fate of startups. As the saying goes, "When you fail to plan, you plan to fail!" That’s why setting goals is extremely important.
Let's look at a few reasons why goal planning is crucial in business.
Goals are the building blocks to your success
Business goals help to propel your business forward toward success. No matter which part of the business you’re looking to improve, the right goals can help you move your business to the next level. Without goals, you won’t know which parts of the business to focus on in order to get the results you’re looking for. So, you’ll likely end up stuck in a rut, not really achieving anything of significance unless you have realistic, measurable goals.
They enable you to monitor your progress
In order to succeed in business, it’s crucial to monitor your progress. Which parts of the business are doing well, and which could use a little improvement? Metrics are not at all sexy but they are necessary to ensure a trajectory for success.
Unless you have a clear idea of where your efforts should be focused, it’s easy to waste your time, money and energy on the wrong tasks. So, setting goals and then reviewing them, helps you to see how far the business has come and the key areas which require additional focus.
Consider your marketing strategy: When you’re spending money trying to attract new customers, you need to know you’re not wasting your efforts. So, setting goals and then reviewing them will help you to see which marketing strategies are working, and which ones you should tweak or let go of completely.
Goals help to boost motivation
Remember that excitement and motivation you felt when you first started the business? It’s what pushed you to launch the company and get it off to a great start. However, it’s natural for that motivation and initial excitement to fade after a few months. That’s where goals can prove extremely useful.
Setting goals that can be easily achieved helps to keep your motivation intact. As you check off the goals, you’ll feel a renewed motivation to push forward and achieve the next one. Without motivation, it’s practically impossible to succeed in business.
Keeping your employees happy
Another reason that goals are important to businesses, is because they help to keep employees happy. While unrealistic goals can damage employee morale and motivation, effective ones can help to increase productivity and communication.
It also provides clarity, ensuring your employees know exactly what they are working towards. You’ll also find setting goals helps to ensure you’re hiring the right employees. If you know where the business is going, you’ll find it easier to hire the right talent to help you get there. Hiring for [business] culture alignment is a great way to set your employees up for success along with ensuring your customers have a great brand experience.
Holding you accountable
Business goals also help hold you accountable. You could have a vague goal in your head that you are working towards, but unless you write it down and monitor it, you’re unlikely to reach it.
When left to our own devices, we’re often not as productive or motivated as we could be. So, having clear goals helps to keep our focus and mind on the tasks required to push the business forward.
These are just some of the reasons why setting goals in business is crucial to your success. The thing to remember is that goal setting isn’t just a one-off thing. You need to continue to set goals once you’ve achieved the initial ones. That is how you ensure your business doesn’t just keep running, but that it thrives. Goal setting should never be considered a daunting task. When reframed as a success strategy, it becomes easier and more valuable, which spills over in your client attraction efforts.
This is Part 1 of our Goal Setting Series ...