Tips for Setting SMART Goals for Your Business Plan: Part 1 – Specific
Tips for Setting SMART Goals for Your Business Plan: Part 2 – Measurable
Tips for Setting SMART Goals for Your Business Plan: Part 3 – Achievable
Tips for Setting SMART Goals for Your Business Plan: Part 4 – Relevant
Tips for Setting SMART Goals for Your Business Plan: Part 5 – Time-Based
Tips for Setting SMART Goals for Your Business Plan: Part 6 – Creating the Final SMART Goal
This article breaks down the 2nd part of a SMART goal setting, along with tips to help complete the Measurable section and apply it to your business planning. We have also included a template so you can write down your business’s Measurable goal.
Most business owners are aware of how important a business plan is for the success of their companies. It lays out the different goals that the business aims to achieve, along with the plan for achieving those specific goals. However, do we truly understand what should be included in setting a business goal? Both in our personal lives and in business, it is essential to have clear objectives! Without goals we are not truly in charge of the direction we are heading, and usually end up drifting haphazardly hoping not to run into any problems that will set us back from success – which it’s also hard to measure success without having set goals to accomplish in the first place! So, what is one of the best ways to set a business goal, you may be asking? Well, we think it’s a smart idea to set SMART goals! These are goals that are specific, measurable, achievable, relevant, and time-based. Let’s take a look at what the 2nd part of SMART goal setting is, along with Measurable tips to help.
Having a measurable goal is important to both the end result as well as the milestones along the way. Using the measurements that you set out in the goals for your business plan will help you to assess if you are on the right track when you review the checkpoints. Setting a goal without a measurement is like a sports competition with no scoreboard or scorekeeper. Remember, what gets measured, gets done! Here are 3 great questions to answer when setting out the Measurable components of your SMART business goals:
1. How Much: What is your goal number? How much ___ are you looking to reach? This would be the measurement you are trying to reach for your goal to be accomplished.
2. How Often: How often will you assess the measurements of your goal? This is where you will need to decide how often you would like to check in on the progress of your goal to measure its success thus far.
3. What Indicator: What specific indicators will you use to measure the success of your goal? If it involves sales, you could be using the dollar amount of sales, the profit margin of sales, or the quantity of a specific product that sells to name a few.
Let’s say you have set a goal to reach sales of $180,000 per year. The answer to the first question would be $180,000 sales revenue in one year. For the second question, you could break this down further into monthly sales in order to set you on the right track. So, your milestones would be to hit $15,000 in monthly sales every month for the year. By focusing on $15,000 per month in sales, you would achieve $180,000 in the year. By splitting this up into monthly milestones it becomes easier to attain as there are multiple things that can be done in a month, and it is less stressful on our minds to think in smaller segments. As for the third question of what indicators to use, you would be using sales revenue in dollars! If there are numerous forms of income for your business, it is important to differentiate which sales numbers you would like to use as the indicator for accomplishing your goal.
Are Your Business Goals SMART?
Goal setting can be fun! With the right understanding of the milestones you are working towards, along with measurable checkpoints, you will set a road map to achieve your business goals. Having a plan set out will also empower you to keep moving forward and seek resolution when you run into the bumps in the road – which will happen! Now that you have a better understanding of the Measurable aspects of SMART goal setting, the question left to ask is: “Are your business goals Measurable?”
As this is only the 2nd step of 6 in SMART goal setting, we think it would be a smart idea to check out the next part in this series: “Tips for Setting SMART Goals for Your Business Plan: Part 3 – Attainable”.
Download the SMART Goal Setting: Measurable – Template.