Your Prime Business Goal

I address thousands of business owners each year. They own businesses in the United States, Brazil, Peru, Africa, and other nations. They may gather in Chambers of Commerce, business associations, international conventions, and other groups. I ask each group the same question "What is the number one goal you have set for your business?"

Sadly, too many small-business owners respond that they have not set a goal. The chaos of running the business, the extinguishing of business brush fires, prevent them from analyzing their business, setting an annual goal, or implementing a plan to achieve the goal. Their plight resonates with many of us, doesn't it? As a result, too many of us frantically rush wherever that day's crisis drives us. We respond to our business storms like a ship without a rudder, then wonder how we arrived at unplanned destination.

Other business owners respond "introduce a new product", "refine our service", "increase traffic to our shop (or site)", "lower overhead"and "stay in business". While I commend those who took the time to plan a goal, I grieve that they missed the prime goal. The goals they set represent means to an end. They cannot survive if they consider these the prime goals of their business.

Let me share the story of Annette who ran a home-based craft business. She set her goal to "triple my sales", a worthy goal. Plus, she accomplished her goal and tripled sales in one year. Unfortunately, Annette failed to do an effective cost analysis of her product. Unknown to her, she lost $1.45 on every $5.00 she sold. So, tripling her sales also tripled her losses and ran her business into $78,000 debt in one year. She not only lost her business. She lost the home that they had mortgaged to finance the business.

The prime goal of any business is to make $XX profit.

Business owners must focus on that prime goal, or lose their business. All other goals or objectives (subsets or small goals that lead to the prime goal) remain subservient to the prime goal "make money". "Making money", however, cannot remain unqualified. You will notice that I qualified my statement with "$XX". Successful business owners not only focus on "making money". They set a goal of how much profit they will earn.

Large businesses calls this weekly, monthly, or quarterly earnings projections. Sam Walton created a worldwide brand by establishing and evaluating daily earning projections. He built systems that gave him the information he wanted every evening. He established 10 rules for business and shared them with every person in the company. Stephen Covey calls this habit of effective leaders "Beginning with the End in Mind".

So, ask yourself "How much profit do I want (plan, need, or desire) to make this year?". If the answer eludes you for even four seconds, to set an amount. Then, post it on your bathroom mirror, tape it to your desk, make it your screen saver, and ensure that you and everyone in your business see it constantly.

After all, that is the prime goal of your business.