GUEST COLUMN: Always do a reality check when setting business goals

GUEST COLUMN: Always do a reality check when setting business goals. Jason Li is an advsior with Enterprise Toronto. Photo/COURTESY

The fact, however, is that just like setting new year's resolutions, setting and especially achieving business goals is easier said than done.

A small business survey in the United States by Staples reveals that more than 80 percent of the small business owners polled said that they don't keep track of their business goals.

So why aren't we very good at setting and achieving our goals? Many entrepreneurs strive to increase their sales every year. But a goal that is articulated simply as "getting more businesses" has little meaning because of the difficulty in judging whether or not the goal has been achieved.

On the other hand, a retailer or hair salon that sets out to increase sales by 100 per cent as the result of one advertising campaign has perhaps been unrealistic.

A more common excuse for many business owners who do not set goals or fail to pursue them is the lack of time. Wishful goals can quickly get lost in the daily grind of managing a business.

In my experience working with thousands of Enterprise Toronto clients, I find that a SMART approach to goal setting really works. SMART stands for:

Specific - goals clearly defined and well focused

Measurable - goals quantified with numbers

Attainable - goals that are challenging but realistic

Relevant - goals are in line with entrepreneurs' overall business vision

Time bound - goals with milestones and deadlines

While the S, M and T in SMART goals are more self explanatory, "attainable" and "relevant" are often more challenging for business owners.

Attainable is arguably the hardest step in the five. Stretch goals can motivate entrepreneurs. But over-stretching may lead to discouragement.

The challenge is to set the goal far enough to push you out your comfort zone, but not so far as to become a barrier.

Business goals also need to be put into perspective. That's where relevance comes in. A relevant business goal is not just a good idea or a "should," but one that is in line with your business vision and values, customer expectations and market realities.

At Enterprise Toronto we always encourage business owners to set goals because those who do are generally more successful. Come and talk to us if you would like some help in setting your business goals for 2012.