more information before you're ready to set specific targets. Eventually,
you'll probably want to put those goals together in the form of a business
plan.
But before we move on to the process of getting that information, let's
take a look at some of the guidelines you should follow when quantifying
your goals:
* Be specific establish targets that can be easily measured, and use
numbers as targets whenever possible. For example, you may set a goal of
selling your goods or services across a particular number of counties or
states, having a certain number of employees, or reaching a particular
level of sales. Tie those numbers to specific time frames (within six
months, within two years, within 10 years, etc.).
* Be realistic having high expectations is great, but make sure that you
establish targets that are reasonable and potentially achievable. If you're
opening a fast-food restaurant, to say that you want to be bigger than
McDonald's within six months is not realistic.
* Be aggressive you can be realistic and still aim high. Don't set goals
that are too easily achieved; also, set both short-term and long-term
goals. If, after six months in business, you accomplish all of your goals,
then what? Don't sell yourself short; if you want to be bigger than
McDonald's within 20 years, go for it.
* Be consistent Beware of inadvertently setting inconsistent goals. For
example, a goal of growing fast enough to have three employees within two
years might be inconsistent with a goal of earning a particular amount of
money if the cost of adding the employees ends up temporarily reducing your
income below the target level. There is nothing wrong with having both
goals. Just be aware that the potential conflict exists, and establish
priorities among your goals so that you'll know which ones are most
important to you.
In developing your goals and objectives, you should be specific where
achievements can be measured. Normally you would have a numbered list of a
few selected objectives. Keep your list to about ten, because long lists
make it hard to focus.
Making your goals concrete is the best way, possibly the only way, to tell
when you've achieved them. Your chance of implementation depends on your
being able to track progress toward goals and measure results, and
implementation is critical. Set measurable objectives such as sales or
sales growth, profits or profitability, market share as published by an
objective and accessible source, gross margin as percent of sales, for example.
Avoid listing vague goals that can't be tracked. Where general or
intangible goals are important to your business, find a way to make them
specific. For example, if customer satisfaction is a priority, put your
objectives in terms of percent of returns, specific numbers of complaints,
or letters of praise, or some other measure related to satisfaction. If
image or awareness is a priority, include a survey to measure the change in
percentages in your plan. You can build a customer satisfaction survey into
your plan, set the sample size and satisfaction scores you want to achieve,
then carry out the survey to check on success.
Since you deal with products, you might watch gross margin or unit sales,
so you should set objectives for these key factors. If you are a
distribution company, for example, then you will also want to focus on
tight management of logistics, working capital, and personnel costs. If you
are a publisher, then you might focus on product quality, titles, or
marketing. This obviously depends on your type of business.
About the Author:
Brian Hazelgren is a globally recognized expert in business planning,
strategic planning, infrastructure development, training, sales and operations.
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