You need to know your business’s current status in order to set goals. SWOT stands for Strengths Weaknesses Opportunities Threats. You can use a SWOT analysis to determine where your business needs to improve, and how to grow.
- Strengths : What is working in your business?
- Weaknesses : Things that you need to fix about your business.
- Opportunities : Markets, products, processes and other factors that can help your business grow.
- Threats : Competitors, changing demand, etc., can all pose a threat to your success.
How to use the SMART method to set business goals
You can then set SMART goals that are realistic and achievable. You’ll need to be familiar with SMART goals, which stands for Specific, Measurable Attainable Realistic Timely. This is a tried-and-true technique that has been proven to be effective by countless companies. For advice from a Gloucester Business Coach, visit www.randall-payne.co.uk/services/business-advisory/business-coaching/
Business owners who use the SMART method when setting goals evaluate their goals based on:
- Specific : Can you clearly explain your goals to your employees? Your overall goal might be to increase your revenue and market share. What specific actions can you take to achieve your goals?
- Measurable : Can you track your progress towards achieving your goals? If your goal is to increase customer satisfaction, what metrics will you use?
- Attainable : Based on the research you have done about your company, your industry and your competitors, can you achieve your goal.
- Realistic : Have you considered all the factors which will affect your ability to reach your goal? What are the obstacles you will face? Are you able to meet your needs?
- Timely : Have you established a deadline for your goal. Will you be able to reach your goal within a reasonable time frame?
What is the difference between goals and objectives?
Business objectives are usually more specific than business goals. Your goals should include objectives as a way to achieve them.
- Business objectives are long-term and generalised. After establishing your business goals, you will be able to break them down into specific business objectives.
- Business goals are short-term and specific. These milestones help you to track your progress towards your business goals. You may set a goal to launch a new product every six months in order to keep customers interested.
You’ll want to create business objectives that are attainable for your employees as you strive to reach your business goals. Business objectives are a way to help your team achieve company goals.