Do you know? According to the Small Business Administration, only about 50% of small businesses survive five years. Meanwhile, about 30% of small businesses are able to survive for ten years. Of course, this should not make you pessimistic. Instead, you have to prepare a strategy so that the business you are running can continue to be profitable and sustainable.

 

One of the important aspects that you have to do is set business goals. However, these business goals must be made in detail and based on certain considerations. To make it more practical, you can apply SMART goals. Let’s get to know what a SMART goal is and its benefits for business through the following review!

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Definition of Smart goals

 

SMART stands for specific, measurable, achievable, relevant and timely. In doing business, SMART goals are considered important for preparing strategies for business development and development. You see, this system helps you to see the target market and evaluate the business. Besides that, SMART goals will also make it easier for you to monitor business achievements. The following details the SMART goal definition.

 

Specific

 

When you want to set goals, then make detailed goals so you can focus more. For business owners, these goals can be in the form of sales, customer relationships, and marketing. Find out what you want to get and what are the steps you have to go through to fulfill this goal.

 

Measurable

 

One of the aspects that must be considered in setting goals is goals that you can monitor. This is important so that you can evaluate what you have done and whether you can achieve your goals or not. You can set these measurable goals quantitatively, namely based on numbers, or qualitatively, namely based on the quality of the results that have been achieved.

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Achievable

 

Business actors who are implementing business goals must be able to prioritize what achievements they want to get. This achievable category is not always a big goal, but goals that can help you understand your business, customers, and strategies to improve your business. When you can apply goals that you can achieve, then you are able to know what the best way you can do it.

 

Relevant

 

Every business actor certainly wants to expand target customers while increasing revenue. For that, you must have relevant goals that help you know what plans need to be carried out. One example is when you open a bookstore and want to increase sales by 20% within six months. In this case, sales relate to the success of your business and fit SMART criteria.

 

Timely

 

When setting goals, you also need to consider a time frame that outlines when you will achieve your goals. Through timing, you can become more motivated to execute your business plan. In addition, implementing a time frame will also help businesses understand your business trends.

 

What is the function of SMART goals?

 

Through SMART goals, you can get the following benefits.

 

  • Motivates You
  • Evaluate strengths and weaknesses
  • Help get out of the comfort zone
  • Increase productivity
  • Making business more effective

 

Without goals that are made in detail and measurably, you will find it difficult to determine the achievements that you have obtained. In fact, in doing business, your achievements are very important as an evaluation to determine future business plans. To make it easier for you to monitor business achievements, you can use Cashlez Reporting, access sales reports that record all transactions automatically.

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