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Added for You - Setting Business Goals-Use the SMART Method to Achieve Dramatic Results
I have often mentioned the need for balance between your family life and your business. This is a little bit trickier of a proposition for work at home parents, particularly those who have little ones pattering about. But there is some benefit to working around and along with the little ones. The first of these major benefits is the fact that they force you to take breaks whether you think you want one or not.For most of us, it is difficult to get into our work first thing in the morning and if we don't have an outstanding amount of self-di
Measurable - The statement, "…reducing the time it takes her clients to pay" is not measurable. Simply stopping here would make it difficult to ac
Often in the small business there are only a few other employees besides the owner/manager. Because of this the owner and employees have to be able to multitask to take care of all the business needs. This is often referred to as wearing many hats. One day the hat might be accounting and the next it will be customer service. The best way to deal with employees who have to wear many different hats is to have a firm plan.A small business is usually thought of as someone's baby. It is often difficult for the owner to give up any kind of contro
For many entrepreneurs, goal setting is not always the easiest endeavor. Most business owners are so focused on their daily operations that they may often confuse tasks with goals. To be clear, goals are used to directly support a strategic objective or business plan. Tasks are short-term activities that keep the business running. Finally, goals consist of a series of actionable tasks to achieve the desired results.
To help in the goal setting process, most successful businesses follow the S.M.A.R.T ("SMART") methodology. This handy acronym helps simplify the process of goal setting and ensures that objectives are defined in the most effective manner possible. When following the SMART process, all goals must be Specific, Measurable, Achievable, Realistic and Time-limited. How does this work? Let us take a simple business example and walk through each of the SMART steps.
Sophie is an entrepreneur who owns and manages an architectural design firm. Her business is growing rapidly. She has grown from four employees to 15 in less than two years. She has a solid client base with several concurrent projects. Despite her firm's growth, her cash flow is a concern. Several of Sophie's clients rarely pay on time. This delinquency, if left unchecked, could cause a financial burden when trying to cover fixed costs such as salaries and office rent.
To help improve her cash flow situation, Sophie uses the SMART methodology to assist her in defining a cash flow improvement goal.
Specific - The statement, "Improving cash flow" is not a specific goal and would not prove useful to anyone trying to accomplish this objective. The goal must include more specific and actionable language. In this instance, Sophie wants to improve cash flow by reducing the time it takes her clients to pay.
Measurable - The statement, "…reducing the time it takes her clients to pay" is not measurable. Simply stopping here would make it difficult to ach
Your personal focus needs to be on the company and not yourself. This means that the company has your full support and you are willing to work towards a common goal - the success of the brand. You need to believe in what you are doing. You also need to know all about the products and services you are selling. If you talk to a potential customer, and they ask an important question, if you do not know the answer, find someone who does. Do not make something up; you will get caught every time. I have been to so many computer stores and ask a really d
To help in the goal setting process, most successful businesses follow the S.M.A.R.T ("SMART") methodology. This handy acronym helps simplify the process of goal setting and ensures that objectives are defined in the most effective manner possible. When following the SMART process, all goals must be Specific, Measurable, Achievable, Realistic and Time-limited. How does this work? Let us take a simple business example and walk through each of the SMART steps.
Sophie is an entrepreneur who owns and manages an architectural design firm. Her business is growing rapidly. She has grown from four employees to 15 in less than two years. She has a solid client base with several concurrent projects. Despite her firm's growth, her cash flow is a concern. Several of Sophie's clients rarely pay on time. This delinquency, if left unchecked, could cause a financial burden when trying to cover fixed costs such as salaries and office rent.
To help improve her cash flow situation, Sophie uses the SMART methodology to assist her in defining a cash flow improvement goal.
Specific - The statement, "Improving cash flow" is not a specific goal and would not prove useful to anyone trying to accomplish this objective. The goal must include more specific and actionable language. In this instance, Sophie wants to improve cash flow by reducing the time it takes her clients to pay.
Measurable - The statement, "…reducing the time it takes her clients to pay" is not measurable. Simply stopping here would make it difficult to ac
The largest problem with getting leads involves working the hardest way possible Vs. working the easiest way. The vast majority of businesses today markets backwards, and then they act all surprised when there's no response.The vast majority of business owners do this. They Create or have services or products from their company and they expect to go out and find people to sell their products or services to.This is a huge mistake. This method of trying to make money can work if you have an unlimited capacity for spending mone
Sophie is an entrepreneur who owns and manages an architectural design firm. Her business is growing rapidly. She has grown from four employees to 15 in less than two years. She has a solid client base with several concurrent projects. Despite her firm's growth, her cash flow is a concern. Several of Sophie's clients rarely pay on time. This delinquency, if left unchecked, could cause a financial burden when trying to cover fixed costs such as salaries and office rent.
To help improve her cash flow situation, Sophie uses the SMART methodology to assist her in defining a cash flow improvement goal.
Specific - The statement, "Improving cash flow" is not a specific goal and would not prove useful to anyone trying to accomplish this objective. The goal must include more specific and actionable language. In this instance, Sophie wants to improve cash flow by reducing the time it takes her clients to pay.
Measurable - The statement, "…reducing the time it takes her clients to pay" is not measurable. Simply stopping here would make it difficult to ac
Your parents and friends always tell you that you’re priceless, but how much does your company think you are worth?With the improving economy and job market, people have more options in 2006. Companies are offering bigger salaries and better packages to gain and maintain the best employees. In light of this, it may be the perfect time to ask your company for the raise you deserve.Most companies aren’t going to throw more money at you “just because,” so it’s your job to state your case if you think you deserve more money. Of course
To help improve her cash flow situation, Sophie uses the SMART methodology to assist her in defining a cash flow improvement goal.
Specific - The statement, "Improving cash flow" is not a specific goal and would not prove useful to anyone trying to accomplish this objective. The goal must include more specific and actionable language. In this instance, Sophie wants to improve cash flow by reducing the time it takes her clients to pay.
Measurable - The statement, "…reducing the time it takes her clients to pay" is not measurable. Simply stopping here would make it difficult to ac
Your prospect mailing lists should be as targeted as possible. General-purpose mailings are less likely to succeed. What are the characteristics of your existing customers? Like as not, you should be targeting more of the same. Look for:Location: where are they?Size: how big are they (turnover or employees)?Business: are there any particular lines of business in which you specialise? If so you can make offers specific to that type of business (it may be a Unique Selling Proposition of yours)pecific - The statement, "Improving cash flow" is not a specific goal and would not prove useful to anyone trying to accomplish this objective. The goal must include more specific and actionable language. In this instance, Sophie wants to improve cash flow by reducing the time it takes her clients to pay.
Measurable - The statement, "…reducing the time it takes her clients to pay" is not measurable. Simply stopping here would make it difficult to achieve success. What amount of time is Sophie trying to reduce? After studying industry benchmarks, she quantifies her improvement goal. She wants to reduce the average payment cycle time from the current 45 days to a goal of 35 days.
Achievable - Is this goal achievable? Can she work with her clients and somehow encourage them to pay more quickly? After doing some analysis Sophie determines that part of the payment delay is the infrequency with which she sends out invoices. She also rarely calls her clients to follow up on past-due bills. A significant portion of this goal is within her immediate control. As such, Sophie feels this goal is clearly achievable.
Realistic - How realistic is it to expect a reduction in payment cycle time by 10 days? Again, using her research and industry benchmarks, Sophie feels that this amount of time is quite realistic. Besides, the payment term included in all of her project contracts is 30 days!
Time-limited - Finally, Sophie needs to place time limitations around her goal. A goal that lingers is not useful. Expectations must be set around when the objective is to be accomplished. Establishing time limits also helps business owners prioritize and plan for goals throughout the year. In this example, Sophie decides that she wants to achieve the reduction in client payment cycle time within six months.
Using the above process, Sophie's formal goal reads as follows: Within six months, reduce the average time it takes clients to pay invoices from 45 to 35 days.
Using the SMART approach to goal setting, business owners can set specific, measurable, achievable, realistic and time-limited objectives. While the process may seem difficult at first, it quickly can become second nature. This method ensures consistency across goals and helps business owners and employees alike clearly understa
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