A goal sets a clear roadmap to achieving the company vision
Visions, both business & life, are vital to success but without aligning them with goals these are just ideas. When you set yourself clear goals you are taking your dreams and turning them into a clear map to follow that:
- Defines where you’ll actually be when you achieve the end goal (the vision)
- What milestones you’ll achieve on the way so you know you’re succeeding
- Which path you’ll need to take to hit those milestones
You’d never set off on a new journey without a map of some kind, and the same is true of the world of entrepreneurship.
Setting goals shares accountability within a whole team
As our teams grow it should become the responsibility of everyone to work towards achieve the vision of the company. If you have defined the goals that are moving the company towards that vision, and shared that with your team, you’re inspiring team members to work towards something bigger than themselves and accountability keeps motivation high – even when times are difficult (and let’s face it, we all have difficult times in business)
Goals encourage a laser focused approach
The online world we now live in, means that we’re forever bombarded with new ideas, new trends and new platforms that inspire us. This also means that business owners are challenged by “shiny object syndrome” as they see things they want to try for themselves. Although this is a great way to keep striving for innovation, it can also be detrimental by diverting focus away from what you have committed to work on in your business.
Goals should stay fixed and the way you get there should be flexible, but if you aren’t clear on your goals then this “flexible approach” can also serve as a major distraction.
Setting clear goals ensures that you are laser focused on your path to achievement and when shiny objects appear you are able to make better strategic decisions on whether it will move you towards the goal or just distract you.
Goals enable better forecasting
Setting goals and tracking them shows you with accuracy what has worked in your business, and equally what hasn’t. Although nothing in business is predictable, likely future trends are far easier to forecast when business owners know this information. It helps to identify trends, resource requirements, opportunities and potential problems. It sounds so simple when you read this, right? If you want to feel better about the future of your business, then start tracking your goals!
Tracking metrics with goals keeps you on the path to success
When setting goals and tracking your success, it’s equally important to track the metrics & KPI’s associated with them. What’s a metric and KPI I hear you ask?
Well, a metric is a piece of data that you can measure and specifically in business, a KPI (key performance indicator) is a metric that tells you how well a business is performing in achieving their objectives. Goals need KPI’s aligned with them to show accurately if they are going to be achieved, and what factors determined their success.
For example if I’m an ecommerce business my goal might be to double the size of my business this year so one of the KPI’s I might measure I would measure would the number of new customers we gained – some of the metrics I might track to determine the success of our company working towards that goal would be the conversion rate on our email marketing campaigns, the size of our email list or Facebook page.
If you are clear on your company vision, have set goals that move you towards that and you measure all the KPI’s that tell you how well you’re performing then you’re already well on your path to success as you know with more accuracy what is working and what isn’t.