Setting Measurable Business Goals to Achieve Success
Setting goals and breaking them down will help you gain clarity and focus on your work. It makes it easier to say “no” to things that get in the way of achieving your goals. Think about it, this will help you focus while simplifying your work.
When looking at your goals, you want to identify your top 1-3 KPI’s that you need to improve to grow your business. What’s a KPI? A Key Performance Indicator is a measurable metric that you track, whether its revenue, profit, sales, margin, or inventory turn to name a few. The KPI will tell you how effectively a company is achieving key business objectives. Part of setting goals it to have a clear goal in mind. What do you want? Revenue growth? Increased margins?
Your goals need to be measurable. You can’t say your goal is to grow sales more. It’s hard to measure “more” and the goal is vague. If you make a statement, “I want each sales person to hit $1,000,000 in sales this year,” it becomes much easier to hold tension to this goal with a measurable number.
Once you have 1-3 important KPI’s, break those numbers down. It’s hard to say you will hit $1,000,000 in sales as an individual salesperson. That’s a lot of sales and can quite easily overwhelm your team. But if you break down the following it becomes much easier to comprehend.
$1,000,000 – Annual Sales Goal
$250,000 – Quarterly Sales Goal
$83,333 – Monthly Sales Goal
$19,380 – Weekly Sales Goal (assuming 4.3 weeks/month)
$3,875 – Daily Sales Goal
$3,876 is much easier to stomach than $1,000,000. String 5 days of $3,876 together and you hit your goal. Smaller victories help put on on a path to larger, and longer-term success. As you ride the momentum and energy for hitting daily or weekly goals, you will feel more enthusiastic about pushing and fighting for your goals.
With your goal broken down, you can now have laser focus on the outcome. If someone asks you to sit in on a meeting for the new warehouse layout, you can clearly see it will have zero impact on your sales and decline. Weeding out a lot of the busy work that has no impact on your goals will help achieve much more efficiency and effectiveness as you charge toward your goals.
Looking for more resources on goal setting? Check out our webinar that breaks down how to take control of your goals this year.
Brad Kreutz is an Advisor for small business owners with Cultivate. Brad has a passion for translating business goals into strategy. Pulling from more than 17 years of experience as a 4x co-founder/owner, Brad brings an outside perspective to help business owners overcome their challenges, create a scalable platform, and grow their business.