If you are thinking of starting your own home-office business, setting realistic goals will provide you with a firm direction. Business goals endow you with a rigid framework and prevent you from straying away. Setting attainable goals is in fact the first step of a successful business.
Realistic goals are characterized by the following features:
- Specific - The goals should be clear and devoid of vague description. You must clearly define the goals in a concise and specific way.
- Measurable - The goals should be measured with relation to a quantifiable description. Setting a goal like "more profits" or "better quality" will not really help you in any way. Goals should be measurable so that you can evaluate your success in achieving them.
- Timely - Efficient goals are time bound with a strict commencement and end date. Without any time limitations, your goals may become redundant.
- Simple - The goals should not contain any jargon. They should be easy enough to be understood by everyone involved with your business.
Business goals are also necessary to achieve the desirable sales target. Realistic and achievable goals will help your business in the following ways:
Decide the Course of Action
Fix firm goals can be achieved by a specific course of action. Realistic goals will help the employees to understand the amount of work that needs to be done to achieve the company's goals. A realistic goal is a well-thought out statement, which leads to a very good business plan (and eventually translates into an efficient marketing strategy). Goals are also needed to measure the progress.
Evaluate and Enhance the Performance
Specific short-term and long-term goals help you to evaluate your company's performance. The same practice can be used for the employees. The goal-setting approach helps to improve the performance of the entire organization.
Determine the Success Ratio
Shortcomings, if any, in the goals can be estimated by comparing with the business goals. Short term business goals, like monthly targets, help to understand the failure or success ratio.
Realistic goals will encourage your employees to perform better to achieve those goals. This behavior can be further encouraged by a performance appraisal system. Clearly laid goals induce a higher commitment level from the work-force. They will help you to maintain a consistent level of dedication and enthusiastic atmosphere in your work-place.
Estimation of Resources
Realistic goals will enable you to estimate the type of resources that will be required to achieve them. Resources like work-force and capital are necessary for smooth functioning of a business. You can assign or allocate the necessary resources depending upon the nature of your business goals.
Mission and Strategy
The overall performance of the company can also be gauged via such goals. You can compare the progress of the company throughout the year. Goals will help you to focus on the mission of your company and will help to concentrate all your activities in achieving the goal. Goals will also encourage the employees to come up with efficient strategies to deal with difficult tasks and challenges at hand.