Set Goals for Your Business

Goal-setting is crucial to the success of any business, but is particularly important for entrepreneurs who can become distracted without focus. Goals direct actions, give you something to aim for, and can serve as a yardstick for measuring your business' success.

The way you approach goal-setting will determine whether you are able to attain your goals. Most people agree that goals are important, but less than five percent of people write down goals or have action plans for attaining them. Fear is most often the culprit. People don't like to write goals down on paper (a crucial part of goal setting) because they are afraid to commit to them. If this is your problem, try to remember that a goal can be changed at any time after you write it down. Also keep in mind that goal-setting becomes easier the more times you undertake it. When you have set goals and attained them, the power of goal setting will compel you to set more.

If you avoid goal-setting, the tips and hints below should help.

Have short-term and long-term goals

You might want to set weekly goals, quarterly goals, annual goals, and even 3-year or 5-year goals. One way to generate short-term goals is to first consider your long-term goals. Is there a certain dollar amount you want to earn or a number of clients you need to sign up by a certain time? If nothing like that comes to mind immediately, take a few minutes and think about what professional goal you would like to attain. Once you have determined long-term goals, you can work backward. If your goal is to make $100,000 this year, you should make a list of what it would entail to make that money. If you encounter difficulty creating your list, ask peers or friends for help. When your list is complete, break those small steps down into goals.

Make your goals specific and measurable with a deadline

"Increase my sales" is a good goal, but it's so vague that it does not provide a means by which you can judge your success. Modify your goals by making them specific. All goals should be specific (Get new clients), measurable (Get three new clients), and have a time frame (Get three new clients by November).

Don't set yourself up for failure

Make sure your goals are attainable. If you aim too high, you're dooming yourself to defeat.

Don't be lazy

On the other hand, some entrepreneurs set goals that are too easily attained. If you tend in this direction, look for ways to challenge yourself. If you usually aim to add one new client every quarter, push yourself to shoot for two or three.

Be relevant

Goals should help you attain a specific aim. Look out for goals that are just going to keep you busy, but are not appropriate to the overall success of your business. If you don't believe your goals are worthwhile, you won't make the necessary effort to achieve them.

Be patient and persistent

It your system of setting goals does not seem to be working because you are not attaining much of what you write down, do not give up. Keep setting goals for several months and you will find that your goal setting skills improve.

Review your goals constantly

Keep your weekly or other short-term goals in plain view -- by your desk, or next to your computer, for example -- so you know what you need to attain. Look at your annual goals monthly to see if you're on track. If your business' focus changes, don't be afraid to alter your goals. Flexibility is a crucial component of goal-setting.

THINK FIRST BEFORE START UP BUSINESS

Common Startup Mistakes

For most people, starting a business is an exciting time during which they are invigorated by the possibility of success and the fun of tackling new challenges. It is also a time to make lots of mistakes!

Many of the mistakes entrepreneurs make during the start-up phase can be avoided. One of the best ways to steer clear of foibles is to talk to established business owners about what they learned during the process. Ask your attorney or accountant for referrals to business owners who have relevant experience and attend trade association meetings and talk to people in the industry you are entering.

No matter how much research and preparation you do, you will make mistakes when you start a business, but the common errors listed here may help you avoid a few.

Common mistakes include:

Incorporating too quickly

The first step for many people when they launch a business is to file with the state office of incorporation. While incorporating is an appropriate step for many businesses, it pays to wait until your business idea is well formed before taking the plunge. The reason: the concept of your business and therefore the name is likely to change during the first few months of operation.

Not researching the market

A frequently overlooked component of business start up is determining whether the target market for your product or service will buy from you. The best way to derive the answer to this question is to ask them. Arrange to speak to as many of your potential customers as possible. Questions to ask include: Would you buy my product or service? Where do you currently obtain this product or service? How much would you be willing to pay for it? What do you like/dislike about your current provider? Where would you look for this product or service when you need it?

Wanting to over-use an attorney

Attorneys' hourly fees add up extremely quickly and newly-minted business owners are often shocked by their first few legal bills. The temptation when you start is to involve your attorney in all aspects of your business for counsel and drafting of documents. Many business owners quickly learn that it pays to do your own research, draft your own documents, and call on the expertise of your attorney to refine your work.

Spending too much money on office space and decorations

A nice office and great computer equipment make many entrepreneurs feel as though their dream of entrepreneurism is coming true. While one of the pleasures of launching a business is setting up an office that you are proud of, expensive trappings have put many businesses out of business before they got off the ground.