The Small Business Owner’s Guide to Setting SMART Business Goals
Many small business owners who set goals for company performance are disappointed when they fail to achieve them. It’s a common issue that can be remedied with a tried-and-true business tool ““ SMART goal setting.
The acronym SMART outlines a winning way to develop business and goals and reach them. SMART goals are:
S ““ Specific (well-defined and focused on a single element)
M ““ Measurable (how you will track and know if you’ve hit your goal)
A ““ Attainable (how realistic it is based on past performance or industry standards)
R ““ Relevant (a goal related directly to your overall business strategy)
T – Time-Bound (a specific timeframe to reach the goal)
The SMART formula has been around for nearly 40 years, but that doesn’t mean it’s easy! It’s always helpful to see real-life examples to learn a new method, so let’s look at three potential SMART goals to grow your business that you could potentially build out using your own facts and figures.
- ” I Want to Grow Revenue”
Specific: We will grow revenue by enhancing our product and increase pricing by 20%.
Measurable: Average Order Value (AOV) will increase by 20% from $120/unit to $144.
Attainable: Market research indicates this product enhancement is one of the Top 5 requested by customers.
Relevant: Enhancing the product line is part of our business plan to grow organically.
Time-bound: We will see increased revenues by Q3.
- ” I Want My Business Operations to be More Efficient”
Specific: We will be more efficient by decreasing the time employees spend on non-revenue producing activities.
Measurable: Our high-value employees will increase the time they spend on high-value activities by 35%.
Attainable: Other businesses in our industry have similar high-value efficiency ratings.
Relevant: Our business model relies on a healthy benefit-to-cost ratio for our workforce.
Time-bound: In 3 months, high-value activities will have increased by 15%; by six months, we will reach the 35% goal.
- ” I Want to Reduce My Costs”
Specific: We will cut labor costs by decreasing employee development costs.
Measurable: Our spending on training and onboarding employees will decrease by 25% without impacting performance.
Attainable: We will poll the management team to see if they feel this idea will work.
Relevant: Our business success relies on continuing to cut expenses.
Time-bound: We should determine within four months if we’ve reached the goal and maintained quality.
You’ve set your SMART goals””now what?
Break down your goals to the 3-5 steps or tasks you will undertake to set them in motion. From there, you can create a master project management plan to ensure you stay on track.
You will have many decisions to make on how to reach your goals, so consider all your options carefully. Make sure you review progress regularly so you can adjust quickly if you find it necessary.
How Goodwill business outsourcing can be the right fit for your goals
If your goals include efforts to increase production, save time, streamline fulfillment processes, or reduce overhead costs, Ohio Valley Goodwill can help! From product assembly enhancements to specialized contract labor that help you increase efficiency and cut overhead costs, Ohio Valley Goodwill Industrial Sources is a proven partner you can trust for your small business needs. We partner with businesses of all sizes in Cincinnati, Northern Kentucky, and Southeast Indiana to assist them with their goals and pave the way for growth.
Best of all, by partnering with Ohio Valley Goodwill Industrial Services Division, your business becomes a part of our mission to change lives through the power of work and provide meaningful employment opportunities to individuals with disabilities. Contact us today to learn more and take a free tour of our facilities!
