Setting The Right Financial Goals Drives Your Business Forward
By Precious Mvulane
And no one said it was easy. It takes a lot of thought and discipline but it’s so worthwhile.
Financial goals for a small business may involve achieving an attractive profit margin or reaching a specific tangible objective such as saving enough money to buy a particular piece of equipment. Whether financial goals are numerical or tangible, they are important to have and if you understand why they’re so important, it will hopefully motivate you to do the exercise. Here are six reasons to consider:
- Be clear about where you’re going
You wouldn’t go travelling without understanding where you’re heading, how long it will take to get there and, at the very least, knowing which direction you need to head off in. Would you? Managing your business shouldn’t be any different. Having targets and goals gives you direction.
- Understand how much you need to earn (and possibly save)
Financial goals help you to understand how much you need to earn in order to reach them – and specifically how that breaks down by product or service or hours (depending on the nature of your business).
They also help you understand what you have to save in order to achieve your overall goal – or some of your smaller goals (such as buying new equipment etc).
- Define your strategy
Different financial goals require different strategies and you might have to rethink your business strategy if the current set up isn’t aligned with what you’re trying to achieve.
- Make better decisions
When you have clear objectives, decision-making becomes easier. Opportunities and ideas are either aligned with your objectives or they aren’t. It’s as simple as that.
- Stay focused
Setting financial goals will help you stay on track by keeping your mind on the prize. This will help you stick with your plan when you’re tempted to deviate, help you keep going when your energy is flagging and will constantly remind you why you’re working so hard.
- Find the right help
This may be in the form of tools or it may be the right team, mentors or coaches to help you on your journey. You don’t have to do iton your own. In fact, those that ask for support are far more likely to achieve what they set out to do.
- Have a Sense of Achievement
Each achievement along the way towards achieving your ultimate goals will spur you on and give you the strength and energy to keep going. Having goals and monitoring progress helps with understanding how you’re doing, you must make sure you celebrate the successes.
Getting the results you want has to start with knowing WHAT you want!