Importance of Goal Setting
Every business brings new beginnings and challenges for an entrepreneur. Whether it is a large organization or an SME, business leaders try to supercharge their work environments by working hard and smart. And they are likely to achieve success by following a structured process. Despite a great deal of hard work that drives their performance, what is the quality that sets companies like Google, Netflix, Amazon, and Adobe apart from others in terms of success? Do they use a special methodology? All entrepreneurs carry a dream. So how is it that some of them can realize their dreams while not others?
The answer is simple. Successful entrepreneurs put a deadline on their dreams. Then, it becomes a goal. Setting goals in business is one of the most significant and primary skills. And yes, successful companies use proven goal-setting methodologies for success.
Goal-setting is a dynamic activity like building muscles. We need to practice it regularly till we get it. But we have to keep the momentum with discipline, determination, and dedication. According to Norman Vincent Peale, an American minister & author, ‘All successful people have a goal. No one can get anywhere unless he knows where he wants to go and what he wants to be or do.’
This has greater relevance in the business realm where the desired outcome is required in the form of profitability and expansion. And thus, performance excellence matters a lot along with its continuous measurement. Goal-setting facilitates this process. It is most effective when we set SMART goals i.e. Specific, Measurable, Actionable, Realistic, and Time-bound. This requires thoughtful development of an action plan that keeps motivating a business owner towards success. A business coach acts like a mentor here guiding your way throughout the journey. Here is why entrepreneurs need a crystal clear vision of where they are going:
Achieve Behavioural change and Kindle Learning
- The entrepreneurial journey starts with a novice. The novice changes into a learner and eventually an expert. But this change is a product of determination and practice done under the purview of the goal-setting process. E.g. increasing sales is your objective. It remains wishful thinking until it is specified and quantified, say 50% growth in sales. To achieve this, concrete steps are needed in planning and action, like:
- Spending more on advertising,
- Giving a target to the sales team and motivating them,
- Collecting feedback from the customers, and
- Adding more product value through marketing.
- Working harder & smarter
- Establishing new & improved channels of communication
- Developing an appetite for information
- Analysing the information collected to derive conclusive insights and much more.
Business performance gathers momentum
The excitement and motivation that entrepreneurs feel in the beginning can soon disappear if it is not supported by the goal-setting mechanism. Objectives should be identified and set under 5 dimensions:
Company's working business model.
If they move in parallel, the business gains momentum and can be scaled in due time.
Helps the business reach its Selling-point
Every business has a unique selling proposition (USP) but it is discovered by identifying the target market and obstacles in the path, their key challenges, how you can solve them, creating unique design elements, developing key salient features addressing those key challenges of your target market, creating an action plan to reach the target market, and monitoring the progress. When the focus becomes clear, it is easy to highlight the creative part of your venture and find out the unique selling point that will pull your prospects to buy. Growth and profitability start from here.
Keep your eyes on the ball
- Focused approach,
- Cost estimation,
- Setting the right culture,
- Intelligent planning,
- Customer relationship management (CRM), and
- Establishing a support team
Many important factors need to be considered and prioritized when running a business:
Review & Monitoring Systems are some of them.
Without a goal in sight, it is difficult to keep attention on these components thus losing to determine one’s market size effectively.
Do you want to avoid goal-setting pitfalls? It is never too late. Connect with the Best Business Coach in Delhi, Mrs Uma Mansharamani.