Setting Measurable, Realistic Goals for Yourself and Your Company
In business and in life, planning ahead can make a big difference in how things turn out. As we near the end of another year, the Central Willamette business services team has put together some tips to help you set measurable goals that can benefit you and your business in the months ahead.
- Do a Year-End Review: Looking forward with clarity requires a look back. As you review the past year, focus on profitability by product or service (what brought in the most profit and what didn’t), client and customer retention rates (did you gain more new clients/customers than you lost), and customer acquisition costs (how much did it cost you to earn a new customer/client). Once you have those answers, use that data to double down on things that worked and eliminate those that didn’t.
- Create a Core Goal: Also called a BHAG (Big Hairy Audacious Goal), coined in a business book from 1994 titled “Built to Last: Successful Habits of Visionary Companies,” this goal should be incredibly long-term (at least 10 years out), clear, compelling, and serve as a rallying cry for your company moving forward. By focusing on a BHAG, every decision in the new year and the years to follow can and should help reach that core goal.
- Monitor Your Cash Flow: Yes, your profit and loss report is essential, but a cash flow map helps you look forward. To create your map, project your estimated income and expenses for each month and quarter in the new year. This will show you where your leaner months are located. You can then use your map to schedule large purchases or when to focus marketing initiatives to increase cash flow.
- Eliminate Subscription Creep: At home, you probably pay for streaming services you don’t use. What about your business? Are you paying for software or cloud services you don’t utilize? Find them and eliminate them for some added cash flow in the new year. Additionally, you’ll streamline processes, saving time and money.
- Schelde Strategic Planning: Successful companies review and update their strategic plans several times a year. While an annual, full day of planning may be needed, quarterly half-day sessions can ensure you’re still on the right track. This is a great way to find issues before they take you off course.
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