A little more than 50% of new businesses probably won’t make it past their first five years. That’s a number compiled by the researchers at Statistic Brain as reported by the Entrepreneur magazine.
The experts have one more interesting figure. Studies also show that 70% of businesses will fail in 10 year’s time.
As an entrepreneur looking to make a success of your business, where would you like to see your company in the next 5 years?
That’s a good question to ask. Because it indicates the objectives you have for the organization. Further, it shows that goal setting is one of the key strategies you’ve adopted.
Experts Reveal the Importance of Goal Setting for Long-Term Success
Arman Sadeghi is an expert Business Coach and Motivational Speaker at Titanium Success. He is also the author of the best seller, “The Business Bible.” In an interview, Arman reveals, “The best way to grow your business is to become more efficient at what you currently do so you can do more of it in a shorter time and then come up with new things to do.”
In other words, to improve efficiency and ensure long-term success, you need to create a series of achievable monthly goals. Work with your team to attain those goals one at a time. Without goal setting, you’ll end up leading a bunch of people who have no definite objective or clear purpose to strive for. With only a string of meaningless accomplishments, your company is sure to stagnate and go downhill very soon. But, by having defined milestones in front of you, it’s easy to prevent such a situation from arising.
1. You’ll Create a Team in Place of a Bunch of Disconnected Workers
When you adopt goal setting, you’ll have a team of professionals working towards a single milestone that they must achieve within a month. In place of people doing a set of assigned tasks that they are good at, you’ll have a team integrating their efforts with camaraderie and a common idea in mind. Each employee will work with the single-minded question, “How can I contribute to attaining the objectives for the month.” Further, your people will understand the decisions you make and stand behind their leader 100%.
2. You’ll have Concrete Targets to Achieve
Like this feature on Chron explains, an essential part of setting objectives is to have concrete numbers to work towards. For instance, you may have targets like, making sales worth $50,000 in the next 4 weeks, or contacting 1,000 potential clients in the same time frame. Here’s another one – the target of completing the development and releasing a new product within 6 weeks. Goal setting will have your workplace bustling with energy and enthusiasm to make the deadlines.
3. You’ll Keep Stagnation at Bay
When you create new goals for the next month or set time frame, you’ll design them around changing market conditions and trends in customers’ likes and dislikes. This factor ensures the constant growth of your company and prevents stagnation. You’ll study the arena where you work and perhaps, develop a new product line that customers will be looking for. You may also widen the scope of your business by identifying new markets outside your current geographic reach. To help with stagnation you can consider CulverServices who offer employee satisfaction consulting. If your employees are satisfied with new projects and tasks then there will be no more stagnation.
4. You’ll Develop a Better View of the Capabilities of Your Business
Every smart entrepreneur is well aware of the importance of setting achievable objectives. Aim higher than that and you set your team up for failure and frustration. Accordingly, you’ll work your goal setting process around the capabilities of the team and company. This is a good time to take stock of how well you’re performing and what you can do to expand the scope of your operations.
Do you need to hire more specialized talent? Do you need to expand the business premises? Do you need to incorporate more advanced technology? Have your questions answered even as you plan for what you hope to achieve in say, the next one month.
5. You’ll Raise Your Chances of Success
A determined and dedicated entrepreneur is sure to work out alternative roads to achieving the goals she sets her heart on. As Keith Krach advises on the Medium, you probably have backup strategies in place in case you aren’t successful the first time round. This drive and determination to succeed is sure to take your business to new heights. Preparing for failure is a good indication that you’re flexible and willing to adapt to the current situation and move forward no matter what.
6. You’ll Track the Progress of Your Business More Efficiently
As you continue with the regular goal setting for each specific time frame, you’ll find it easy to track how your business is progressing. Were you able to achieve the objectives for the previous month? Or, did you fall short? What were the factorss that made the success possible? Can you use the positives and improve on them for the future months? Can you hope to raise expectations and do better moving forward? The hard copies and graphs you create during the planning will help you keep careful records and measure the success of the company in real time.
For every entrepreneur, setting up a new company is a labor of love, one that takes a lot of hard and determination. Often times, the new business is also about professional and personal growth and satisfaction. It is understandable that you want your brand-new venture to succeed and reach that elusive 10-year milestone. To get your company to that point, use the all-important strategy of goal setting. And, you’re sure to see your efforts pay off.