You know how important it is to set effective goals for your business. It’s those very goals that will drive every action you take. But how do you know if you’ve chosen the right ones?
No more playing games of chance because today we’re sharing the 3 things you absolutely must do before you can set effective goals for your business.
TIME-STAMPED SHOW NOTES:
[00:51] The Purpose of Creating Effective Goals
[03:32] Creating Effective Goals Starts with Thinking
[06:15] How to Focus Your Thinking
[10:04] Your Mission Statement is Key to Setting Effective Goals
[11:47] Know Where You are to Know Where You’re Going
[13:43] Effective Goals Are Key to Your Business Growth
[15:04] Bloopers
The Purpose of Creating Effective Goals
[Theresa] Setting constructive goals is necessary to grow and be productive in business. In episode 21, we shared 3 reasons why writing down your goals helps you succeed. When you write your goals down, it makes it so much easier to create a clear, strategic path to achieving them.
[Meghan] That’s right. Most of what you’ll read on the Internet about how to set effective goals focus on the mechanics of goal creation. For example, you’ve probably heard about S. M. A. R. T. goals. S. M. A. R. T. is an acronym that stands for: Specific, Measurable, Achievable, Realistic, and Time-Bound. It’s designed to act as a guide to creating your goals.
While it’s smart to set S. M. A. R. T. goals, today we want to give you a different set of criteria to think about when it comes to setting goals. Think of it as a precursor to selecting your goals.
[Theresa] Writing out clearly defined goals is the key to achieving them. Every action you take in your business hinges on knowing those goals. The goals drive your action.
Every action you take in your business hinges on knowing your goals.
But before deciding what those goals are, committing to them, and creating an action plan, you need to know where you are now and where you want to be.
[Meghan] Knowing those things is so important. For a goal to be truly effective, it should always move you in a direction you want to go.
So today, Theresa is going to share with us three things you must consider before you ever put that pen to paper.
[Theresa] Before we get started with that, Meghan, I want to put a lens on this. Today, we’re specifically discussing what to do before you set business goals, but there are two things I want you all to keep in your mind as we move forward today.
- This process can be used for setting personal goals as well.
- You’re more than your work. So even when setting business goals, keep your personal life in mind.
[Meghan] Good to know. What’s the first step, Theresa?
Creating Effective Goals Starts with Thinking
[Theresa] The first thing you must do before you set a single goal is to devote time to think. This is by far the most important first step to creating effective goals. And I can tell you for certain that you’re not spending enough time thinking.
[bctt tweet=”The first step to creating effective goals is to spend time thinking about your bigger vision.” username=”@TheresaCifali”]
You might be saying to yourself, “I’m always thinking about my goals. In order to create them in the first place, I have to think.”
Well, of course, you’re thinking. But the question is, are you doing the right kind of thinking?
[Meghan] Ok, stop right there. Are you saying that there is a wrong and right way to think?
[Theresa] It sounds silly when you say it that way. So, no, I’m not saying that you’re doing it wrong, I’m saying you’re doing it backward. The act of creating a goal involves more granular thinking. There’s nothing wrong with that. Except that too often you choose your goals without thinking about the bigger vision. You choose your goals haphazardly.
I believe it should be the other way around. You need to think about the bigger vision first. Then create your goals from there.
[Meghan] Will you give us an example, please?
[Theresa] Sure, let’s use list building as an example. You’ve decided to grow your email list. That’s great. You first think about how big you want that list to be, so you create the following goal:
I will add 5,000 new, relevant email subscribers to my list in the next 6 months.
That’s a very clear goal. It’s certainly S. M. A. R. T., but what is the purpose of the list? What is it helping you do, have or be?
Did you consider the bigger picture before creating the goal? Is it relevant for the type of business you’re growing? Will it take you in a direction you want to go?
Having a list of 5,000 relevant email subscribers would be super helpful if your vision is to create a business that sells digital courses. But it might not be so helpful if you’re building a high-end coaching business that survives on networking and referrals.
[Meghan] I get it. So what you’re saying is that you first need to think about what you truly want. Then you can decide the goals that will help you get it.
So how should you focus your thinking then?
Spend time thinking about what you truly want, then decide what goals will help you get it.
How to Focus Your Thinking
[Theresa] There is no set of rules to use when it comes to thinking. But you’ll want to create the right environment and make sure you’re asking yourself the right questions.
[Meghan] Let’s start with the environment. How do you create the right type of environment for thinking?
[Theresa] Ok. First, carve out time when you can be alone. Go into a room where you can close a door or choose a time when the house is going to be empty.
[Meghan] We understand that some people may have kids at home doing remote learning or significant others still working from home. So if you have people in the house, make sure you communicate that you need a couple of hours of quiet.
[Theresa] Communicating is always a good idea. If you like to be out in nature, go for it. Go to a park or a nature preserve. As long as it’s just you and your brain.
Wherever you’ve created your space, it’s time to daydream. You know, like you used to do in Math class back in high school. Dream about what you want your life to look like.
Since we’re talking about business today, here are some questions to consider:
- How do I feel about my business right now?
- Do I currently have the business I intended to create?
- What’s my favorite part about what I am doing professionally?
- What do I not enjoy about what I’m doing professionally?
- If I could do anything I wanted, would I still choose this business?
- Do I want to change anything about my business?
- What am I doing well?
- What can I improve?
- How much revenue do I want my business to generate in one year? In 5 years?
- How does my business fit into my personal life?
Just think. Don’t write anything down. Leave yourself space to be with your thoughts.
[Meghan] Those questions are a great place to start. Of course, there will be other things that you may want to consider. It’s not important to get it perfect, it’s important to start.
It takes practice to daydream. At first, you will feel like you’re goofing off. You will most likely resist this activity altogether because you think it’s a waste of time. It isn’t. You will learn so much about what you really want from work and from life.
[bctt tweet=”When you make time to daydream, you’ll learn so much about what you really want professionally and personally.” username=”@MeghanMonaghan1″]
[Theresa] Yes! And once you spend time thinking, what you want will become so much clearer. When you’re clear on what you want, it’s much easier to craft effective goals that support your vision.
When you’re clear on what you want, it’s much easier to craft effective goals that support your vision.
[Meghan] Theresa, I’m curious, at what point do you start writing things down? Because I’d be afraid that I’d forget everything I thought about! Plus, I enjoy the process of writing down my thoughts.
[Theresa] That’s a fair question. The goal of thinking is to free up your mind to wander with no constraints.
Once you stop that activity, your subconscious will continue to work in the background. New thoughts and visions will emerge. It’s not a process you can rush.
But you first must give yourself time to freely think. Once you’ve done that, then you can start putting pen to paper. Or you can make it even more fun by creating a vision board that contains imagery of what you want to build.
[Meghan] I love that suggestion. It’s kind of like the writing process. Before you can create effective content [LINK], you first need to know the goal of that content. With goal setting, you first need to know your vision before you can set effective goals.
So after you’ve spent time thinking. What should you do next?
Your Mission Statement is Key to Setting Effective Goals
[Theresa] Now that you know what you want, it’s important to be crystal clear on the main mission of your business. Because whatever your mission is, you’re going to want to make sure each goal you set is in alignment with this mission!
Set goals that are in alignment with your mission.
[Meghan] Having a mission is critical. If you already have a mission statement for your business, look it over. Does it align with where you’re thinking? If not, then spend time reworking that statement or just start over.
I actually just created three mission statements yesterday – one for each business website or channel. The mission helps set a North star for your business.
[bctt tweet=” Your mission statement helps set a North star for your business.” username=”@MeghanMonaghan1″]
So, if you have not created a mission statement, take time to create it. It will help you make decisions about the goals you set.
[Theresa] That’s right. So before you create a goal, know your company’s mission.
Some example mission statements could include:
To help busy professionals achieve optimal fitness by providing easy, healthy exercise plans so they look and feel great
Help business owners achieve success through improving their public speaking and leadership abilities so that they increase their influence and authority
To help entrepreneurs achieve their goals by teaching them how to identify the right actions to take in their business in order to create more happiness and prosperity
When you have clarity on your mission, it’s easier to decide on effective goals that move your business in the right direction.
[Meghan] And don’t let perfectionism keep you from completing this step. Your mission statement will evolve as you do, so make a “for now” choice. You can always change it up later. Remember, people–embrace the messy moments!
What’s the last thing to consider before you can set effective goals, Theresa?
Know Where You are to Know Where You’re Going
[Theresa] So you know what you really want when it comes to your business because you’ve spent time thinking about it. And you’ve crafted your mission statement so that you’re clear on your business direction. Next, you’ll want to know how your business is currently performing and if it aligns with the direction of your mission.
You’ll need to do a little digging to figure out where you are now in order to get where you want to be.
These are the key areas you want to look at, though they may vary depending on your business. They include:
- Sales
- Marketing (social media, content marketing, etc.)
- Budgeting
- Overall income or profit
- Client retention
- Market share
- Hiring or growing a team
- Customer satisfaction
To see how you’re doing in each of these areas, you’ll need to do some investigative work. Which I know Meghan loves!
[Meghan] You know it! Research is my favorite. Knowing the data for these key areas will be helpful when choosing your goals.
Knowing the data for certain key areas of your business is helpful for choosing effective goals.
Your research could involve digging into your website or social media analytics, doing some competitive analysis, talking with your employees, and looking at how you’ve performed in different areas year over year.
Which areas are you doing well in? Which areas are you struggling in? Where are your competitors doing well? What changes are coming in your industry that could impact your business success in the coming year(s)?
These are all important questions to ask as you do your review!
[Theresa] The review is so important because in order to know where you’re going you first need to know where you are. So be honest in your analysis. It’s not good or bad, it’s information. That information will help you craft the right goals.
Effective Goals Are Key to Your Business Growth
[Theresa] Now I know this may all seem like a lot of “busy work”, but I promise, taking time to do this pre-work is a necessary path to creating effective goals. And your goals are the cornerstone to actually growing your business and seeing RESULTS.
[Meghan] As you get used to using this process, you’ll start to find your confidence increases and your business actually moves forward in a really intentional way. And who doesn’t love that?
