Want To Build A Profitable Business? Set Goals
- Feb 8, 2023
- 4 min read
Written by: Tuesday P. Brooks, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Goals are seriously overlooked when it comes to business. When you think about the profitability of your small business, you probably wonder if you’re undercharging for your products or incurring too many overhead costs. But do you spend much time at all – if any – contemplating your business goals and the critical role they play in your company’s profitability?
If your answer to that question is no, it’s definitely time to do so. Setting business goals will help you stay on track so your company can achieve profitability. Read on to learn more.
Why Do Business Goals Matter?
We set New Year’s resolutions and then promptly break them. But business goals are different. If we set them up right, they guide us, motivate us, and prevent us from going in circles. They increase our accountability and keep our business moving in the right direction.
Poor strategies (or lacking them altogether) are one major reason businesses fail. It’s essential to put thoughtful goals, strategies, objectives, and action steps in place and then pursue them with passion and determination.
You’re probably aware that goals can be short-, mid-, or long-term in length. When it comes to business goals, they’re generally categorized as financial, performance, or a blend of both. (Even when they fall into a distinct category, note that they’ll likely still be interconnected.) No matter the classification, it’s crucial that they are SMART.
What does this mean, and why does it matter?
SMART goals are specific, measurable, achievable, realistic, and time-bound. Pay attention to this acronym as you set your business goals. If you ignore it, you’ll likely end up with goals that are too broad, too ambiguous, and too ambitious. And without deadlines, there’s a good chance you’ll never fully commit and see them through.
SMB Owners Must Set Annual Goals
To build a profitable business, you should set goals annually. But don’t stop there. Turn these goals into quarterly objectives, and from there, into monthly, weekly, and daily actions (also known as tactics).
You’ve probably heard it before, and I’ll say it again: breaking down large goals into smaller, more manageable pieces will make them much less intimidating. Shorter-term action steps will help you get closer to your overall goals.
A Simple 3-Step Process to Achieve Your Business Goals
Here is how you can put this into practice in real life. Let’s say you decide that your annual financial goal is to earn $150k by December 31st.
The first step is to break this big goal into easier-to-manage quarterly objectives. When you do this, account for the seasonality of your business in your quarterly sales targets and projections.
Next, with these projections in mind, design your marketing strategy so you can meet your quarterly objectives. For example, you might focus on marketing and publicity during slower months and concentrate on closing deals during the months you anticipate higher sales.
Finally, turn these (connecting) strategies into monthly, weekly, and daily action steps. Make these tactics actionable and specific so you can successfully track your progress and adjust as needed.
Here’s an example:
Annual Goal ‒ Increase sales to $150k by December 31st of this year.
(1st Quarter: $25k; 2nd Quarter: $50k; 3rd Quarter: $50k; 4th Quarter: $25k)
1st Quarter Objective ‒ Achieve $25,000 in sales by selling 10 clients the $2,500 service package.
1st Quarter Connecting Strategies ‒ Upsell: Increase how much our current clients spend with us. Generate awareness of additional service offerings. Offer a discounted rate on the premium package (e.g. $2,500 - down from $4,000).
1st Quarter Tactics (broken down into weekly/daily tactics) ‒ All three team members (or one if it’s just you) will seek to book up to 15 clients each on their calendar over a 12-week period to discuss the benefits of the premium package (at a temporarily reduced price). Each of the team members should contact 10 - 15 clients to offer this special incentive. The objective is to each close five deals at $2,500 each to reach or exceed the $25k goal for the quarter. Make five phone calls per day; send follow-up emails; text clients who respond better via text. Send an invitation for a client appreciation lunch & learn, etc.
Repeat this process each quarter with different connecting strategies, such as:
Events (host event, partnering in events, speaking, workshops...)
Loyalty campaigns (love campaigns, milestone celebrations, thank you’s...)
Media (pitch articles, publicity, expert positioning...)
Online campaigns (online courses, newsletter, customer reviews drive, podcast, v/blog, website listings, social media plan, go live...)
Partnerships (cross referrals, sponsors, cross selling...)
Special deals (limited time offer, buy x get x, launch a contest, VIP offer...)
While it will take some time and effort, this process is more than doable. The main requirement is to establish annual goals for your business and then build a plan around them. Follow the three steps above and be consistent. And the next time you find yourself worrying about the profitability of your small business, shift your thoughts to goal-setting. Before you know it, you’ll be well on your way to achieving all you can imagine and more.
Tuesday P. Brooks, Executive Contributor Brainz Magazine
Tuesday P. Brooks, MBA is a business owner, educator, trusted tax & accounting advisor, and fierce champion of small business. Unwaveringly devoted to financial fluency Tuesday’s mission is to accelerate the profitability of financially-sound, women-led companies that employ across the U.S. As such, she works tirelessly helping women founders gain the confidence to take a leap of faith towards growth so they can tap further into their joy of business ownership more easily.
