We’ve talked a lot lately about the proper steps for setting various types of New Year’s resolutions for your business. From cutting costs to improving employee morale, we’ve provided you with a basic framework for meeting virtually any goal you may imagine setting this year. However, one thing that we haven’t discussed is exactly why you should be setting goals for your business in the first place.
The short answer to this is that goals will help your business to grow and improve, but there are actually many potential benefits of business goal-setting. Here are just a few of them.
Measure Your Success
How do you know if your company is doing well—it’s just turning a profit every month? But what if the profit is actually declining from the previous month? Do you still think your business is doing well? Without clear goals, it’s difficult to accurately assess the success of your business.
When you set goals, you take a step back and examine your business from more of a “big picture” perspective. Clear goals will help to steer you toward your overall vision for the company and keep you on track for the growth you’re hoping to achieve.
Is everyone in your company striving for the same thing, or are you all pushing and pulling in different directions? Clear business goals ensure that everyone in your company—from the highest levels of management down to the last employee—understands what they are working toward. This cohesion guides the day-to-day decisions, like who to hire, where to allocate resources, how to market your company, and so on. When everyone is on board and pushing toward a clear goal, your company is more likely to succeed.
Once you have defined the goals for your business, you don’t just sit back and hope it’ll happen. You spend time planning, strategizing, and figuring out what has worked for other businesses similar to yours. This all requires research, which means you’ll be gaining valuable knowledge about various tactical decisions and how they impact your strategic goals. Knowledge is power, and setting goals helps you to get more knowledge under your belt to help your business thrive.
Finally, by setting goals for your business, you rely less on luck to become successful and more on your own skills and experience. Of course, everyone would love to get lucky and be the next big thing, but that doesn’t usually happen in the business world. Setting goals puts you in control of the direction your company will take and allows you to focus your efforts on achieving the kind of success you envision. Isn’t that what any business owner wants?
January is winding down, so start setting some clear goals for your business right away to get everything on track for 2016. By setting goals and utilizing proper tools to meet those goals, your business can grow and thrive.