Have you ever heard of SMART goals? Why spend time on creating these types of goals? What’s their use and does your business actually need them?
What are SMART goals?
SMART stands for: Specific, Measurable, Achievable, Relevant and Time-Bound.
That means that when you’re about to set goals for yourself and your business, they should be based on the above.
A simple (personal) example would be:
As someone who’s passionate about traveling, my goal is to visit Italy and Spain (Specific & Relevant) by the summer of 2023 (Time-Bound). I will achieve this goal by saving $500 per month for the next 12 months (Achievable & Measurable).
Why spend time on creating these goals?
There are many books and experts out there that have said time and again that “what doesn’t get measured, doesn’t get done.” As with anything, it could be true or false, but I personally believe in it as I’ve tried setting goals that weren’t ‘SMART’ in the past, and have only been partially successful or completely failed. It also doesn’t mean that making them SMART instantly equals success, as you still have to work towards the goals and not everything depends on you, but the chances would probably be in your favor.
So, as hard as it is to come up with your goals in this manner, it’s worth it. Even if you’re semi-successful, you can always go back and analyze the reasons for that, adjust for the future and start over again.
How do we use these?
There are many methods to tackling this, but when it comes to your business, I recommend starting with the following aspects in mind:
Sales and Marketing
Then, drill down for each of those and think about splitting your goals between short and long terms.
Next, consider the KPIs you’d like to measure / review. KPIs are Key Performance Indicators. Some examples would be:
Let’s look at sales and marketing for a landscaping company -
To add another 10 residential retainer clients for 2023 by posting on social media pictures of previous landscaping work done at least twice a week
To increase our ROI (Return on Investment) for our marketing campaigns from a ratio of 3:1 to 6:1 by June 2025. We will achieve this by redesigning our website, adding direct mail and keep using different social media platforms
Does your business actually need them?
In short: Yes. SMART goals provide businesses with more certainty and direction. Sure, you can run a business without it but at some point you might feel “stuck” or unsure about the way things are going. You can always start and make adjustments as you go, because things around you, circumstances, change from time to time and that’s a given in life and in business. However, as long as you have a base, something to ‘rely’ on that keeps pushing you forward, that sense of purpose cannot be replaced and once achieved, it is time to celebrate and move on to the next (SMART) goals.
If you're ready to work on your business' goals and make them SMART, then book a free consultation here.