Goal setting is more than just giving yourself a to-do list. You should set yourself a really meaningful long-term goal and then break it down into smaller achievable targets. Business owners should articulate this long term goal to the team through various mediums. Having a really well defined vision for the company provides clarity for all of your team members.
Once you have set the long-term goal then you can establish financial metrics on how to achieve it. For example, one of our clients wanted to start a new business venture that would run parallel to his existing company. When he came to the office he had some basic income targets and not much of an idea of an end result. In the meeting we gave him the following goals:
1. Review your performance for the full year and set measures in place to achieve your target turnover (reduce purchase costs, increase sale prices, cut overhead expenses)
2. Work out how many clients you need to have to achieve the set turnover based on average sale per client
3. Work out your gross profit and net profit margins and budget your wages accordingly
4. Create a budget that corresponds to your marketing strategy
5. Once marketing strategy is set, an estimate of client acquisition cost can be worked out
The above list is a basic outline for a plan. Starting with an end in mind and focusing on simple financial metrics required will achieve the long-term goal. The easy part is to have a plan, but the hard part is to implement and follow through on the plan. The reason we offer quarterly consulting sessions is to hold clients accountable to their quarterly targets. Implementation of quarterly targets results in achieving the long-term goals. Everyone in business knows that you can have the greatest idea in the world that goes nowhere but the real art of business is in the execution of the idea.
At Tradies Accountant, we can help you set the financial aspects of your goals and then through quarterly consulting we can hold you accountable on achieving the set targets.