A lot of business owners pour in their interest, capital and effort into setting up a company, thinking that these are enough to keep the business afloat. WRONG. In order to attain and gauge your success as a company, you need FIRST to have clear business goals. Your company must have a direction and a purpose.
How Important are Business Goals?
So how important are goals, really, to a business? Here are some reasons why:
Your employees need guidance.
Sure, you will have employees who work only because they want to earn money for their families, but most employees also use these company goals to establish their own professional paths. Who would want to work for a business with no direction? Of course doing so will also mean that their careers are temporary – and no good employee wants that. People work to improve themselves and to establish self-esteem. Letting them know that their professional life is just as important as earning money is a great way to develop employee loyalty.
Customers want to know if they can rely on your business from the long run
It is very rare to find customers who intend to do business with your company once – well, unless they are dissatisfied with your goods or services. Customers always need assurance that they can run back to your company in case they need something, or most especially if they encounter problems with your products. This is true for companies that guarantee satisfaction, or issue warranties for products. Having business goals helps the customers feel at ease. It gives them reason to believe that your company has a future.
Who’s going to invest in a company with no goals?
Most companies need investors to keep the company afloat. They may be needed at start-up, or when expanding. But who is the silly lender or investor who will risk their money on a company with no promise of business success? Business goals help convince the investors to take a chance on you – if they want to see their money grow. These goals makes all the difference between being considered an “investment”, as opposed to being a simple interest-bearing “capital loan.”
Putting up a business with no goals is just like driving aimlessly around the country with no clear destination. Goals serve as personal assurances – that you are personally giving the company the best possible thought and action, that you care for your employees, that you are conscious about reaching financial returns and targets, and that you have desires to help the company grow. A business is not some short-term contractual job – it should last for as long as you keep reaching for that ultimate dream.
But before you write down those dreams, remember the ways you must keep your goals realistic:
- They should be specific.
- They must be measurable.
- They must be do-able and plausible.
- They must complement your line of business.
- They must be accomplished within a specific time frame.
There’s no sense in setting unattainable dreams. You will only set up yourself for disappointment. Aim high, but be realistic.
Recommended Books on Setting Business Goals:
- Goals! How to Get Everything You Want Faster Than You Ever Thought Possible
- Strategic Business Partner: Aligning People Strategies with Business Goals
- The Goal: A Process of Ongoing Improvement
- Goal Setting: 21 Days To Achieving Life Changing Goals And Being Happy Happy Happy (Goal Setting Success Series)
- Goals: Setting And Achieving Them On Schedule
- The Enthusiastic Employee: 16 Myths on Employee and Performance Management
- Hiring and Retaining Good Employees
- Pros and Cons of Financing a Business
- How to Live Up to Your Greatest Potential
- The Costs of Pay Scale and Employee Turnover on the Bottomline