Business goals examples provide notable guides for small business owners and startups who may encounter challenges with the writing process. As a small business owner, dealing with paperwork might be unpleasant for you. However, it helps to sit down and write the goals for your business.
This article will go over business goals, what they are, business goals examples, types, and why you need them. So, read on to learn more!
What are business goals?
Business goals are written down statements that describe the intention of any entrepreneurial venture. Essentially, they are the desired accomplishment of any enterprise for a particular time frame. Also, business goals represent the expected performance of individuals associated with the company.
For instance, you can have goals for your managers, marketers, or even customers. Your goals represent your company’s big picture, direction, and blueprint. Furthermore, your business goals may not be specific and only represent a wider outcome.
Types of business goals
Knowing the types of business goals is critical for your organizational strategy. Fundamentally, there are three types of business goals.
Strategic goals are generally broad company goals, usually drafted by the management. The board of directors, CEO, managing directors are all company personnel saddled with this responsibility. Essentially, their input when writing business goals is to create a broad picture for others to follow. For example, a strategic business goal might be to automate several business processes within the company.
The middle-level managers develop and carry out tactical goals on behalf of the company. The tactical goals reflect a more actionable element of the strategic goal. Going by our previous example, a tactical move might be generating W-2 forms for employees as a business automation process.
The operational goals are the most specific in the goal chain and are executed by the general employees or workforce. Essentially, operational goals are more targeted at specific company members at their duty posts. The workers in a company earn their pay by executing or carrying out its operational goals. A typical example is customer service, maintenance, cleaning, accounting, etc.
Time-bound classification of business goals
Business goals must be time-bound and are classified into two groups based on duration. As a result, we have short-term goals and long-term goals.
Short-term business goals
Short-term business goals are those business objectives and targets to be attained with the shortest possible time. Generally, the benchmark for short-term goals is 3-4 months.
Here are some examples of business goals examples for the short-term:
- Get new work equipment
- To increase traffic on your company’s blog
- Create social media handles to enhance digital marketing
- Boost your business social media presence and engagement
- To start an employee recognition program
- Increase product and service prices by 2%, etc
Long-term business goals
Long-term business goals constitute a permanent change in your company. As a result, they take a gradual process to implement and attain. Generally, a long-term goal can take up to 6 months to 1 year, depending on the nature of the goals. Also, some companies can chart a 5year plan for the long term. Here are some examples of business goals examples for the long-term:
- Aggressive advertising over the next year
- Set up branch offices across the United States
- Reduce production cost by 10% over the next four years
- Increase business revenue by 20% over the next 6years
- Create and launch a new product within two years, etc.
Benefits of writing business goals
An ancient African proverb quotes, “the shortest pencil is greater than the longest memory.” From this standpoint, the importance of writing company goals cannot be overstated. Here are a few benefits of writing company goals:
- It serves as a viable metric to measure business success
- All employees are well-aligned towards the general goals and objectives of the company
- Workers are up-to-date on the decision-making process of the company
- Employees are well acquainted with the steps towards business execution
- Business goals serve as a map for the proper direction of the company.
Now that you know the benefits of setting goals for your business, it’s time to consider certain factors to keep in mind. Here are a few factors to consider when setting business goals.
Factors to consider when writing business goals
Feasibility is the first factor that comes to mind when writing down your business goals. Essentially, it would help to ascertain whether your goals are attainable in real-time.
Here is what we mean!
If your business goals examples seem too easy, it could give you a false sense of accomplishment. On the other hand, if your business goal examples seem too complex, it could cause a depletion of your resources. As a result, balance is key when trying to ascertain the feasibility of your business goals. You want to make sure that your goals are achievable by all standards.
Here are a few tools to measure the feasibility of your business goals examples:
- Your historical business analysis
- Year-to-date calculations
- Market trends
- Company resources, etc.
This way, you can write attainable business goals and not jeopardize your success.
Your business goals should be time-bound, which is why you should consider the time frame. While ensuring that your time frame is realistic as possible, you must also be cautious with your speculation. You might want to get your team together to brainstorm whether a short or long duration is good for your business.
Resources are key catalysts to actualizing any goals, and business goals examples are no exception. As a result, your available resources, both human and material, are significant determinants for your business goals examples.
For instance, you might need to hire more workers and realize you don’t have sufficient finances for their paystubs. From that example, the entrepreneur has to balance human and financial resources. Therefore, balancing your resources is critical for attaining your company goals.
According to Sir Winston Churchill, “Those who fail to learn from history are doomed to repeat it.” As a result, your company records are essential when considering your goals. Before writing any business goals, you should look through your company’s previous achievements. That way, you can create a track record and find out what you need to do differently.
How to write business goals
Writing business goals incorporates a few steps. It is akin to writing a business plan. While several people implement the SMART goals for writing business goals, others like to freestyle.
Whether or not you want to follow a format depends on the size of your business. If you are a solopreneur, you might write the business goals solo. However, if you run a big business, there are chances that you will require a meeting with your workers and associates before writing the goals.
A practical system for writing business goals is the SMART format. Here is how:
- Specific: You need to be clear on your goals before writing them down.
- Measurable: Quantifying your goals will make for proper documentation and execution.
- Attainable: You have to consider the feasibility. Your goals should not only look good on paper but be achievable.
- Realistic: Being realistic when writing your goals requires paying attention to the problems and challenges likely to arise. Ask yourself what the worst-case scenario could be and think of a solution.
- Timely: Your timeline for attaining your goals–Due dates, deadlines, etc.
What’s next after writing your business goals? Execution!
After writing your business goals, the next thing to do is take action. Without execution, your business goals are no better than paperwork and remain unattained. Hopefully, this guide sets you up for success concerning writing business goals.
FAQS: What are the types of business goals?
What are the types of business goals?
Business goals are classified based on organizational strategy and timeframe. As a result, there are three types of business goals by organizational strategy (strategic, tactical, and operational). Similarly, there are two types of business goals by time (short-term and long-term)
What are the five smart goals?
SMART is an acronym for outlining organizational strategies, goals, and objectives. It is a useful tool that several groups employ to successfully attain their group goals. Therefore, SMART goals are specific, measurable, attainable, realistic, and timely.
What is an employment goal?
An employment goal represents the specific areas an employee desires to pursue in their job. Usually, you can utilize several provisions and opportunities in your company to pursue your employment goals. Also, your employment goals reflect the level of progress you desire to achieve in the workplace.