What are business goals?
A business goal is an objective that a company strives to achieve. A business goal can be short-term, such as increasing profits in the next quarter, or long-term, such as doubling the size of the business in the next five years.
There are four main types of business goals:
- Financial goals
- Customer goals
- Operational goals
- Employee goals.
These can further be split into short, medium, and long-term timeframes. I
The first step in setting business goals is to identify the company’s mission and vision. From there, you can set goals that align with the company’s overall objectives.
Let’s explore:
What is the purpose of goals?
If we define goals as an observable and measurable end result having one or more objectives to be met within a specified timeframe. Then we can borrow from a model such as SMART goals to define business goals. Smart stands for Specific, Measurable, Attainable, Relevant, and Time-bound. This can be used to set a target that an organization uses in order to achieve its desired results.
The main purpose of setting business goals is to provide guidance and direction for the business. business goals should be aligned with the company’s mission and vision. If you are a business owner or manager, it is important to have a clear understanding of what type of business and personal goals there are and why they are important.
Understanding the different types of business goals
Before we go on to learning how to set business goals, it is important that we deepen our understanding of the different types. Depending on your role in the company, your desired type may change, however having an understanding of all four will deepen your insight into the topic and provide you with better results once you start setting your targets!
Financial Goals
Businesses have different reasons for wanting to save money, but there are some common financial goals that most share. Some common financial goals include building an emergency fund, increasing profit, paying off debt, and raising capital for growing existing avenues and starting new undertakings.
Emergency fund: An emergency fund is a savings account that is used to cover unexpected expenses. It’s usually used in a personal capacity, however, any good business should have capital reserves available. This could even be a goal to self-insure as many of the largest and most successful companies out there do.
Growth: As you’ll see in the rest of this article there are many types of business goals, but once we get rid of moral semantics a business usually only has two goals. Create value for its customers and generate profit for its shareholders.
Debt: Debt can be a major financial burden, so paying it off is a common financial goal. Some businesses even use it as a tool, structuring it in ways to avoid taxes or accelerate growth.
Customer goals
When a company sets out to achieve its goals, it must first understand what its customers want. Only then can it develop a strategy to win them over and achieve its own objectives.
There are a variety of ways to learn about customer goals. Market research, surveys, interviews, and focus groups are all effective methods. Once you have a good understanding of what your customer’s goals are, you can begin to develop a plan to achieve them.
Keep in mind that customer goals can change over time, so it’s important to stay up-to-date on their ever-evolving needs. By always keeping your finger on the pulse of the customer, you can ensure that your company is always working towards its goals.
Operational goals
Operational goals are specific objectives that a company intends to achieve in order to improve its overall operations. These goals can be short-term or long-term, and they can be specific to a certain area of the business or company-wide.
Operational goals are important because they help to keep a business focused on its overall objectives. Without these goals, it would be easy for a company to get sidetracked and lose sight of what it is trying to achieve.
Some examples of operational goals include:
- Increasing production efficiency
- Reducing costs
- Improving customer service
- Implementing new technology
- Streamlining processes
Employee goals
Companies invest in their employees because they want them to be productive and efficient. When employees are engaged and performing well, it benefits the company as a whole. There are a few different employer goals that are usually targeted when it comes to employee development.
- improve employee satisfaction.
This can be done by offering benefits and perks, or by creating a positive work environment. - Increase employee productivity.
This can be done by providing training and development opportunities, or by ensuring that employees have the resources they need to do their jobs well. - decrease employee turnover.
This can be done by offering competitive salaries and benefits, or by investing in employee retention programs.
Setting goals is a critical part of any successful employee development plan. By setting goals, employees can identify specific areas where they need to improve and work towards attainable targets. This not only benefits the employee but also the employer, as it can lead to increased productivity and a more motivated workforce.
Be sure to check out our article on the different types of business and personal goals for more information on the subject. The more you know!
Essential tools for optimizing your business goals
Before we go any further, we already have articles dedicated to the Top goal-setting tools as well as one dedicated to Optimizing your business for efficiency We have detailed reviews and pricing plans and both posts have some great options for anyone looking to make a success of their business. For the purpose of this article, we will focus on goal setting and 4 high-value tools that will have you hitting targets, satisfying customers and employees as well as outperforming your competition!
- ClickUp – All-in-one management
- Pipedrive – CRM
- Engagedly – HR orientated
- Xero – Micro accounting (small businesses)
These are the essentials for a business that is trying to grow. Streamlining processes and making your life easier is what they are all about. It is an investment that will reward you many times over!
Right Model for the right job
Now that we understand what business goals are as well as the different types and what tools we can use to make the process easier, we can almost get into the actual goal setting. This is another topic that we cover quite extensively on the site and if you want to become an expert at setting business goals, there are two must-read articles :
- Master achievable goals setting – This article defines goal setting and provides detailed oversight and practical instruction on how to set realistic and achievable goals.
- 4 best goal-setting techniques – Provides a detailed breakdown of the SMART, GROW, CLEAR, and PACT goal-setting strategies.
These two articles will lay the foundation for understanding what goals are, how they are related to purpose, and how to define them. Knowing their function and being able to choose the correct model based on the type of goal you want to set create will greatly increase your chances of creating effective and attainable ones for your business.
The final step is setting your goals!
You now have the knowledge, application, and tools at your disposal to create realistic, achievable goals. They should be actionable, and trackable. Consider obstacles and constraints, while offering solutions. Most importantly they should be adaptable and scalable to meet the everchanging environment of today’s competitive market.
As a final bonus, similar to what we did in our pillar post on fixing your life, we have created a goal-setting template to assist you with the process, which can be downloaded here.
Keep making good life decisions and investing in your foundation by increasing your knowledge and you will soon find that your dreams start turning into reality! We look forward to hearing about the amazing things you accomplish along your journey, so let us know in the comments or get in touch!
Be sure to check out our goal-setting archives for more great insights on turning your dreams into reality after you’ve learned how to set and achieved your business goals.
TLAT is reader-supported, when you buy through the links on our site, we may earn an affiliate Commission. Learn More
