Growing your start-up business is no small task. Careful planning is required to implement a solid growth strategy.
But where do you start when creating a strategy? The first step is to define clear goals to achieve.
In this article, learn more about the SMART method and how it can help you set the right goals for your business.
The SMART approach to goal setting: What is it?
The SMART method is an easy-to-remember acronym that simplifies the goal setting process for a company, whether it is for project management, employee performance management, personal development or business development.
We will focus on the latter to demonstrate how this mnemonic tool works.
S for Specific
The S in the SMART acronym stands for "Specific". This means that the business goals you set should be precise, simple, observable and clearly stated, so that all those involved in achieving them can easily understand them.
An example of a "Specific" goal in a business setting could be: "Increase the amount of the average customer's cart to $50 by the end of the fiscal year". With this objective in mind, you can establish a business or marketing strategy that will allow you to achieve the desired results.
M for Measurable
Next, using the SMART method, your goals should be "Measurable". In other words, you will need to set a number of key performance indicators to track and thresholds to reach in order to measure your progress and determine if you are on track to meet your targets.
For example, if your goal is to increase your number of online sales, you could determine a specific conversion rate to reach in order to measure the effectiveness and performance of your marketing strategy and adjust it accordingly.
A for Achievable
The letter "A" in the SMART method most often means "Achievable", but could also be defined as "ambitious" or "appropriate".
In short, your business goals should be ambitious enough to stimulate your team's motivation and creativity, but not so difficult that they are impossible to achieve. Your team must embrace this challenge and believe it can be achieved.
R for Realistic
This aspect of the SMART method goes hand in hand with the previous one. The goal you are aiming for should be achievable depending on the experience and skills of your team.
For example, if you want to increase your number of customers, you will need to determine how much work your project managers and different teams will be able to handle. You may therefore want to determine whether you need to expand your team in order to achieve your goal.
T for Timely
Finally, the last letter of the acronym SMART stands for "Timely". This is because the amount of time you allocate to achieving your goals needs to be determined beforehand to motivate you to achieve them. Without time limits, it will be easier for you and your team to lose motivation and let your projects fall by the wayside.
Another way to motivate your teams is to set shorter-term goals. For example, if the total time frame for completing your project is one month, you could set a weekly schedule so that you can better monitor your progress.
T2inc: your accounting and tax strategy partner
In short, the SMART approach to setting business goals helps you set realistic goals that will help you grow your small or medium-sized business.
At T2inc, our accounting and tax specialists will help you determine appropriate goals for your company. Moreover, we offer many training courses for entrepreneurs, including business start-up and management, to help you lead your business to success.
Contact us to find out more about our services!