Set Goals for Next Year’s Growth

This concludes our 3-part series on year-end activities to improve next year’s business

The end of the year provides you an opportunity to position your business for growth for the next year. We already discussed what you can do financially to prepare your business for the coming year. We also reviewed actions that show appreciation to your clients. Finally, you set business goals and establish an action plan to enhance your business for the next year.

Set Goals for What You Want to Accomplish

Businesses set multiple goals. You set specific goals for each aspect of the business:

• Increase profits your business will generate next year with quarterly milestones
• Lift revenues based on specific number of sales with quarterly/monthly forecasts
• Improve production for number of units manufactured or services rendered
• Reduce costs and overhead through bulk buying, discounts & finding new vendors
• Introduce new products or product enhancements to increase client satisfaction
• Expand a market niche or open a new market niche based on market research
• Increase traffic to your store, web site, or phone bank
• Shorten time needed to process accounts payables & receivables

These represent  merely a sample of the goals you may set for your business.

Create a Business Dashboard with Benchmarks

In addition to setting goals, you may wish to establish a dashboard for your business. Just as the dashboard of a car allows you to monitor the vehicle’s speed, oil, battery, and temperature. Business dashboards allow you to quickly see the vital statistics for your business. Each business monitors different elements. For example, restaurants monitor how frequently they turnover clients per table per day. Clothing stores monitor the number of times a rack of clothes turns over.

Businesses also use a system called benchmarking. Benchmarks establish the base standard for industries. Benchmarks may include table turns for restaurants, clothing turns, times for auto repairs, and more. Benchmarks allow you to compare your production to the norm in your industry. They also provide the standard you work to improve.

Set SMART Goals

The word SMART in SMART Goals is an acronym for

• Specific: Your goal is so clear, specific, and detailed anyone can understand it
• Measurable: You can measure when you achieve the goal, usually with a number
• Achievable:  You can realistically enjoy success because you can achieve the goal
• Relevant: Achieving the goal leads to the purpose & direction of your business
• Timely: You set a deadline—with milestones—for when you will achieve the goal

You may want to consult KPI Dashboard for additional ideas on goals, dashboards, and benchmarks. Your local Small Business Development Center (SBDC) and Service Corps of Retired Executives (SCORE) can advise you about your dashboard and benchmarks if needed.

Join me Tuesday to continue the series on year-end activities by updating your business plan