Goal Setting in Small BusinessSetting goals are an essential part of success in small businesses providing a set of targets that motivate and guide owners on the best way to run their business. Setting goals is more than writing down a “wish list” and rather a clear way to measure financial objectives and to identify weaknesses that can hold you back. Here at M.A.S Partners, we have some small business accounting tips to help identify your business goals on your way to success.
SMART Goals
S.M.A.R.T is an acronym for a set of criteria to establish and measure your business goals. Standing for specific, measurable, achievable, realistic and timely, S.M.A.R.T transforms your goals into a specific and clear guide to motivate you in the right direction.
Specific Goals
Specific goals are just that, clear and distinct objectives that turn a vague idea into a concrete decision. Specific questions to ask are what you want to achieve in the business, why it’s important and who is involved. For example, wanting to increase revenue is a good goal, but a specific goal would be to increase revenue by 15% or to have a growth rate of 25% annually.
Measurable Goals
To ensure you’re staying on track to reach your goals, it’s important then to measure progress which can differ depending on your goal. For financial goals, look to the data from monthly bookkeeping to gauge if the numbers match your projected goal. A small business accountant can help you monitor your goals and provide a progress report to take the stress out of goalkeeping.
Achievable Goals
Your goals not only need to be clear but also achievable in that they should be attainable and not out of reach. To find if your goals are achievable consider if you have the resources and people available to reach your goals and the possibility of readjusting your goals if they seem impossible.
Realistic Goals
Achievable and realistic are similar measurements, but realistic goals relate to your overall business vision and if your goals match the business direction you want to go. Finding if your goals are realistic can be difficult and a small business accounting firm can help guide you to find if your goal is relevant.
Timely Goals
Placing an end date to achieve your goal, gives direction and urgency to reaching your goal and helps to measure your success. If your goal is to increase revenue by 25% annually, that gives a year to work towards reaching your financial target and can be further broken down as quarterly and monthly to keep you on track.
Ask a Business Accountant
M.A.S Partners are Australia’s original accounting firm for small businesses, with our experienced accountants helping you to achieve your goals to take the stress out of accounting. With almost sixty years of experience, we’re here to help take your business to the next level. To find out more about our small business accounting services in Sydney, contact us here or call us on (02) 9211 5000. |
