Do You Set Goals for Your Small Business? Here’s Why You Should…

Growing a successful business from scratch is hard work – especially if you’re making it up as you go along. If you dream of being a successful entrepreneur with an ever-expanding enterprise, setting business goals is essential, both practically and psychologically.

This doesn’t just mean writing a wish list of what you want to achieve (we’re not talking New Year’s resolutions here!). Setting reachable goals is about creating an actionable plan designed to get you from A to B and so on.

It’s about knowing what you want to achieve and coming up with workable steps towards this ultimate goal. There are many ways this kind of approach will help you on your path to success.

Measure progression

Working towards goals requires you to regularly evaluate where you’re at. By keeping tabs on your progress to see if you’re meeting, exceeding or lagging behind on your goals for a particular month, quarter or year, you’re in a better position to action improvements, change direction and make tough decisions.

If you’re doing better than expected, you’re probably on the right track. On the other hand, if the results are below par, it might be time to make some changes.

Measuring your progression over a period of time, ensuring you take the natural ebbs and flows of different times of the year into account, means you can properly keep track of how your small business is doing overall.

Promote collaboration

As a small business owner, finding employees with the right skills and attitude is integral if you’re going to achieve your aims.

But it’s even more important to ensure your members of staff have purpose in their roles and know exactly what they’re working towards.

This is where your business goals will help promote collaboration.

Whether your targets are concerned with training, sales, attracting new clients or finding a better way of doing something, if everybody is on the same page, this makes reaching goals as part of a team more likely.

This also sets benchmarks for performance evaluation.

Stay motivated

Plugging away day by day without any real sense of direction makes those difficult periods all the more tedious.

However, having goals helps you to stay focused and keep your eye on the prize so you’re more likely to feel motivated and push onwards with fire in your belly!

Without a sense of purpose or clear direction in mind, motivation can quickly fade. If you have no idea where you want to go, how are you going to get there?

Attract investment

People want to invest in businesses destined for long-term success. By setting business goals, you’re sending a clear message that you’re fighting to succeed and in this for the long-run.

Whether you’re seeking new suppliers, business partners, financial investors or ambitious employees, having a solid business plan that you can discuss makes you more attractive to those who can help take your business to the next level.

Financial planning

Keeping on top of your finances is the most important element of your business and having goals in place makes budgeting and setting financial targets a lot easier. Linking your financial forecasting to your business plan is essential.

This way, you’ll have a better idea of how much credit you’re likely to need to cover costs and also implement any new plans month by month.

A big part of your financial planning when setting up your company or making any changes to an existing one is to check you’re fully protected with small business insurance cover.

Being properly insured is the only way you can prepare yourself for those unforeseen circumstances that can prevent you from reaching your goals.

Are you looking for bespoke business insurance specially designed to cover your line of work? Contact The Insurance Octopus for further details or to request a quote.