A goal is a specific, measurable, attainable, relevant, and time-bound objective that you set for your business. Why are goals important? Because they give you direction and keep you focused on what’s important. They also help you track your progress and gauge your success.
There are many benefits to setting goals. Goals help you make better decisions by taking into account what you want to achieve. They also motivate you and your team to stay focused and work hard to achieve results. Finally, goals help you measure progress so you can adjust your course as needed.
Now that we’ve gone over why setting goals is important, let’s talk about how to establish them.
The first step in establishing goals is determining your business’s north star metric. This is the metric that best represents the success of your business. For example, if you’re a SaaS company, your north star metric might be monthly recurring revenue (MRR). If you’re an ecommerce company, your north star metric might be gross merchandise volume (GMV). Once you’ve determined your north star metric, you can begin setting goals.
When setting goals, it’s important to keep them simple and concrete. Make sure each goal is specific, measurable, attainable, relevant, and time-bound. For example, a goal might be “increase MRR by 10% within 6 months.” This goal is specific (it targets MRR), measurable (you can track whether or not it’s been achieved), attainable (10% growth is realistic), relevant (it’s aligned with the company’s overall mission), and time-bound (it has a deadline of 6 months).
It’s also important to make sure that the goal is worthwhile and stable. A worthwhile goal is one that will have a positive impact on the business. A stable goal is one that won’t fluctuate too much from month to month or quarter to quarter. For example, increasing MRR by 10% within 6 months is a stable goal because MRR tends to grow steadily over time. But increasing website traffic by 10% within 6 months is not a stable goal because website traffic can fluctuate greatly from month to month or week to week.
Finally, when changes are made, it’s important to give quick feedback loops so that team members know whether or not they’re on track to achieving their goals. Feedback loops help keep team members motivated and focused on achieving results.
In conclusion, setting and achieving goals is important for businesses of all sizes. By taking the time to establish clear and concise goals, businesses can ensure that everyone is on the same page and working towards the same objectives. What’s more, by setting achievable goals, businesses can measure their progress and adjust their course as needed. So what are you waiting for? Start setting some goals today!