The new year is the perfect time for small business owners to start looking ahead at opportunities for growth. The question is: how can I make it happen? No matter how big or small, setting goals is the key to moving your business forward and developing a framework for measuring business outcomes.
Of course, as a small business owner, you’re in charge of setting your own business goals — a factor that can make it hard to know where to start. With this in mind, we invite you to consider a proven strategy to help you through the process, the SMART goal-making system. (University of California, 2016)
Where to start when setting goals
Whether you’re thinking of opening a second restaurant, expanding into online sales, or opening a small business from the ground up, the SMART goal-making system can help you get there.
The system works by breaking down the process of goal setting into 5 components. The idea is to ensure any goal you set is specific, measurable, achievable, relevant and timely (SMART). It’s great for small businesses since it provides a good model for tracking progress, identifying strengths and highlighting areas for improvement.1
Here’s how to get started:
Getting SMART with goal setting2,3
1. Specific
The first step to making SMART goals3 is to have a clear, specific outcome in mind. Narrowing your focus can give you a clearer picture of what you want to achieve and the steps you need to get there.
Ask:
• What do I want to accomplish?
• Do I have the business funding I need?
• Why is the goal important?
• Who is involved?
• Where is this goal happening?
2. Measurable
Next, you’ll want to know what metrics are in place to help you evaluate when and whether you’ve hit your goal. Are you setting a quantitative or qualitative target? Now is the time to consider your options.
Ask:
• How will I know that I have accomplished the goal?
• Are there any resources I can use to measure my goal against?
3. Achievable
Remember the adage, “Never bite off more than you can chew”? It applies here. Nothing can derail a business plan like setting unrealistic goals. That’s why it’s crucial that the ones you set can be realistically accomplished.
Ask:
• How can I achieve my goal?
• What resources do I need (small business funding, personnel or raw materials) to achieve my goal, and do I have them on hand?
• If not, when and where can I get them?
Relevant
When setting goals, you want to make sure they achieve specific milestones to help your business grow. Let’s say you want to increase new customer visits to an online store by 25%. Since new customers are a critical component of business growth, the goal is relevant.
Ask:
• Does this goal match our other business efforts?
• Is now the right time to be setting this goal?
• Is this goal worthwhile for prolonged business success?
• Is my small business the right company to achieve this goal?
Timely
Finally, you want to ensure you’ve got a timeframe in place to help keep your goal-setting organized and on track. Setting key dates and deadlines encourages you to keep going.
Ask:
• Do I have any deadlines I need to hit?
• What can be accomplished in that timeframe?
• What can I do to achieve this goal immediately? (In the next six weeks?)
• What efforts are needed over the longer term?
Putting your plan in motion
Now that you’ve worked through the SMART system and have a solid goal in mind, it’s time to put your plans in motion. Reach out to your mentor if you have one, or check out TD’s small business market research page or our other tools and resources to help you on your way.
If you feel like you might still need some help refining your idea or goal, download our Business Plan template, an easy-to-use tool that addresses product and service information, competitive analyses, financial feasibility and more. A solid plan will also come in handy when you're looking for money. Speaking of which, if you need funding, TD is currently offering complimentary access to Fundica, an easy-to-use AI-powered search engine that finds relevant government funding recommendations based on your business situation and needs.
While the SMART system is a great way to set and achieve goals, it’s only one of the many tools out there to help get you going. Other places to start include Canadian Industry Statistics, a site that offers business-related data including average revenue and ROI across a range of industries,4 or various other small business online resources.
With a new year underway and talk of a recession on the horizon, the need for setting realistic goals for growth has never been more important. And whether your goals are small, large or somewhere in between, the smarter your strategy, the better your chances of achieving them. Now’s your chance to make this year your best yet.
Citations
1 Office of the President, University of California. "SMART Goals: A How To Guide." UCOP Human Resources. University of California, December 1, 2016. https://www.ucop.edu/local-human-resources/_files/performance-appraisal/How%20to%20write%20SMART%20Goals%20v2.pdf.
2 Futurpreneur - Understanding Entrepreneurship. Futurpreneur, November 12, 2017. https://www.futurpreneur.ca/
3 Boogaard, Kat. "How to Write SMART Goals." Atlassian. Atlassian, Accessed December 1, 2022. https://www.atlassian.com/blog/productivity/how-to-write-smart-goals.
4. Innovation, Science and Economic Development Canada. "Canadian Industry Statistics." Government of Canada. Government of Canada, July 19, 2022. https://www.ic.gc.ca/app/scr/app/cis/search-recherche?lang=eng.
Customer Service and Support Research Team. "Align Customer Service Reps With Organizational Goals." Gartner. Gartner, Inc., May 8, 2020.
If Needed: Inline Citations
Inline: (University of California, 2016)
Inline: (Futurpreneur. 2017)
Inline: (Boogaard, Kat. Atlassian. 2022)
Inline: (Innovation, Science and Economic Development Canada. 2022)
Inline: (Gartner,Inc. 2020)