It is traditional at the start of the year to set yourself personal targets. This could be anything from trying to be healthier to saving money towards a holiday. But what about your business? There are two crucial reasons why as a business owner you should set yourself goals.
The first reason is, goals will help to keep your business on track and focus on the work you are completing. Aiming for a goal will help to keep all work on a focused path and avoid spending time on unrelated work or work which has no use to the key objective.
Secondly, the main benefit of setting goals is the advantage that you can track how well something is working for your business. It gives you the ability to see data about a certain section of your business and how well it is doing in comparison to where you want to be. This in turn gives you the opportunity to alter aspects of your business so it works more efficiently and more in tune to your objective.
What should be my goals?
Your primary goal is your business objective, what your business is aiming to do. A good idea is to look at a similar business of the same scale as your company and see what they have achieved. This is a good foundation for what you may want to achieve and what is reasonable to achieve. You need to think, what you would love for your business to achieve, such as, a certain amount of revenue each month or a certain number of new customers signed up to your services a year. This is your main business objective.
To reach the key objective you must set yourself sub goals, these are short-term goals that you need to achieve in order to succeed, these are combined of both financial and non-financial goals which work cohesively. To set sub goals you need to keep the objective in mind, what will help you achieve that goal and what is realistic for your business. You may not be able to handle 1,000 new orders next week but if your business grew then in a years’ time you would be able handle this. You need to set these goals from your main objective plan.
In order to achieve these goals, you need to plan actions that will ensure you stay on track, these are smaller actions which could be done on a day to day basis that ultimately help you to succeed. For example, an action you may take is to plan one hour into every day where you are dedicated to ringing prospects to try and increase sales.
Financial stability is extremely important when looking to achieve your business goals, you need to have the available funds in order to achieve this objective. This is where setting financial goals can aid your business goals. They work hand in hand to achieve your goals and both are equally as important when it comes to having success in your business. Your business cannot run on thin air and achieving your business objective when you have no financial goals set would be almost impossible.
Measuring your goals using bookkeeping software
You can measure your success by monitoring your goals and objectives regularly. This will help you stay on track to achieve all your goals and on the right track for your final objective. It allows you to fix any problems which may be occurring within your business or stop any larger problems arising.
A Cloud Bookkeeping system, such as Quickbooks or Xero is a great tool to aid you in tracking your goals. This allows you to track where your business is financially and monitor your progression over time. Cash flow is important when it comes to planning your goals because this is a big factor in whether you can afford to achieve your primary goals. Tracking your cash flow through cloud systems allows you to track the distance you are from your key objective, and prevent any issues that may arise in your cash flow.
The biggest advantage of using a cloud based system is that you can access it anywhere you go, so it gives you the flexibility to monitor your business anytime you wish too. Many of my clients have benefitted immensely from using cloud bookkeeping, however this is not the only way to track your financial goals. You need to find the method which works for you.
If you need any more information or advice regarding cloud bookkeeping or other bookkeeping service to aid your financial goals feel free to get in touch. I’m happy to help!