business team using a tablet

The Small Business Owner’s Guide to Setting SMART Business Goals

Many small business owners who set goals
for company performance are disappointed when they fail to achieve them. It’s a
common issue that can be remedied with a tried-and-true business tool – SMART
goal setting.

The acronym SMART outlines a winning way
to develop business and goals and reach them. SMART goals are:

S – Specific
(well-defined and focused on a single element)

M – Measurable (how you
will track and know if you’ve hit your goal)

A – Attainable (how
realistic it is based on past performance or industry standards)

R – Relevant (a goal
related directly to your overall business strategy)

T – Time-Bound (a
specific timeframe to reach the goal)

The SMART formula has been around for nearly 40 years, but that
doesn’t mean it’s easy! It’s always helpful to see real-life examples to learn
a new method, so let’s look at three potential SMART goals to grow your
business that you could potentially build out using your own facts and
figures. 

  1. “I Want to Grow Revenue”

Specific: We will grow
revenue by enhancing our product and increase pricing by 20%.

Measurable: Average Order
Value (AOV) will increase by 20% from $120/unit to $144.

Attainable: Market
research indicates this product enhancement is one of the Top 5 requested by
customers.

Relevant: Enhancing the
product line is part of our business plan to grow organically.

Time-bound: We will see
increased revenues by Q3.

  • “I Want My Business Operations to be More
    Efficient”

Specific: We will be
more efficient by decreasing the time employees spend on non-revenue producing
activities.

Measurable: Our high-value
employees will increase the time they spend on high-value activities by 35%.

Attainable: Other
businesses in our industry have similar high-value efficiency ratings.

Relevant: Our business
model relies on a healthy benefit-to-cost ratio for our workforce.

Time-bound: In 3 months,
high-value activities will have increased by 15%; by six months, we will reach
the 35% goal.

  • “I Want to Reduce My Costs”

Specific: We will cut
labor costs by decreasing employee development costs.

Measurable: Our spending
on training and onboarding employees will decrease by 25% without impacting
performance.

Attainable: We will poll
the management team to see if they feel this idea will work.

Relevant: Our business
success relies on continuing to cut expenses.

Time-bound: We should
determine within four months if we’ve reached the goal and maintained quality.

You’ve set your SMART goals—now what?

Break down your goals to the 3-5 steps
or tasks you will undertake to set them in motion. From there, you can create a
master project management plan to ensure you
stay on track.

You will have many decisions to make on
how to reach your goals, so consider all your options carefully. Make sure you
review progress regularly so you can adjust quickly if you find it necessary.

How
Goodwill business outsourcing can be the right fit for your goals

If
your goals include efforts to increase production, save time, streamline
fulfillment processes, or reduce overhead costs, Ohio Valley Goodwill can help!
From product assembly enhancements to specialized contract labor that help you
increase efficiency and cut overhead costs, Ohio Valley Goodwill Industrial
Sources is a proven partner you can
trust for your small business needs. We partner
with businesses of all sizes in Cincinnati, Northern Kentucky, and Southeast
Indiana to assist them with their goals and pave the way for growth.

Best
of all, by partnering with Ohio Valley Goodwill Industrial Services Division,
your business becomes a part of our mission to change lives through the power
of work and provide meaningful employment opportunities to individuals with
disabilities. Contact us today
to learn more and take a free tour of our facilities!

MENU