01/ 07/ 2008
by Pamela Mills-Senn
If you haven't already done so, now is the time to map out your objectives for the upcoming year. And unlike those New Year's resolutions, which—admit it—are pretty much made to be broken (come on, are you really going to run three miles every day and give up chocolate?) your business goals should be designed to last, getting you successfully through this year and positioning you for the next.
The first step in developing your future goals is looking backwards, conducting an objective year end review, determining where you wanted to go and looking at the core values you wanted to attain, says achievement expert Doug Vermeeren, who is based in Calgary, Alberta, Canada.
In examining how close you came to realizing your objectives, it's important that you are willing to look at your failures as well as at your successes, and to reassess what you are rather than what you thought you would be, says Lisa Gold, president of Long Beach, California-based Gold Consulting.
"And you have to start with a good set of books; you can't do anything if you don't know your numbers," says Gold, whose company specializes in small-business startups. "Look at this budget very carefully," she continues. "Look at where you spent money unwisely. For example, do you have a highly-paid employee who is not producing? Are sales in line with your incentives? What about your marketing and advertising budget? Is it producing the desired results or does it need to change? If you didn't have a budget, create a retrospective one for the past year, and then one for this year and look at how this will get you where you want to go."
Ah yes, where you want to go. Some small-business owners have a very clear and concise idea of where they want to end up and how they're going to get there. For others, the picture is decidedly murkier. In the latter case, determining your core values will help, says Vermeeren, because your goals should always be based on these.
Clearly understanding your products or services and your target market are also essential musts before setting your business objectives, says Gold, adding that small-business owners shouldn't tackle all this on their own.
"It's important to have at least two trusted advisors, one internal to the company and one external, such as a mentor, consultant or trusted friend," she explains. "You need advisors who don't have the same vested interest as a company owner does."
Solicit feedback from staff as well as customers, says Vermeeren. Ask employees how well they think your company has been meeting its objectives, and ask the same of customers ("Customer surveys are very helpful," he says). How effectively has your company been serving them? What are their perceptions of your business? What needs and/or problems are not being addressed?
"Also look to your competition to see where they're going and ask yourself why they're going there and what they might know that you might not," Vermeeren says. "I'm not saying to do what they do, but to ask why they're doing it. And look where they zig and see if you can zag. There may be customers they aren't serving that you can.
"Setting goals is not always a matter of thinking outside the box but finding the right box to think inside of," he continues. "I believe you can never set a goal too big. The challenge is understanding the right path to get there. We know people can think and dream big and achieve their dreams if they have the right path."
Begin with a concise picture of where you want to go, set a destination and then consider the consequences not just for this year but for next, Vermeeren says. Ask yourself: Does this take you where you want to be in 2009? If not, then you need to adjust. And then from here, just work backwards, determining what needs to happen, who should be on your team and so on.
Vermeeren says a common mistake is setting the bar too low, goal-wise. "Small goals tend not to be anchored to passion or drive," he explains. "You have to set goals that will strengthen and challenge you."
Gold agrees that, over time, some small-business owners can get a little soft.
"I've never seen an entrepreneur set goals that are too small—pessimists don't start businesses. But after a few years, some small-business owners become complacent and set small goals. Thinking too small also comes about by not delegating enough to trusted employees," Gold adds. "But, setting goals that are too lofty is common. If you're not careful this could kill your business. For example if you spend money that you don't yet have, or expand your market without first cementing relationships with existing customers.
"I believe businesses should have realistic and achievable goals," she cautions. "This doesn't mean that you can't dream big, just that the more your dreams are grounded in reality, the better your chances of success."
