The most successful business owners have one thing in common. It’s something that is free, and can take as little as 5 minutes a week to implement.
I know what you’re thinking. You’re wondering what this amazing secret is and why haven’t you heard about it.
Well, you probably have. It’s not such a secret after all.
But you might not realize how powerful it really is.
It’s goal setting of course!
Richard Branson, Gary Vaynerchuk, Marie Forleo — all these business leaders are committed to goal setting. But is that all there is to it?
To grow your business, not all goals are created equal. Some goals will take your business further, faster.
An Example of an Incomplete Goal
You are trying to increase your profit – the money you take home at the end of the day.
So you set the goal to be at the office 40 hours per week in order to increase your sales.
That could be a good goal if you are able to bring in more customers by being at the office. But it might be an ineffective goal if you’re working efficiently while you are at the office, and adding more time at the office means you spend more time surfing Facebook, and NOT increasing your sales.
How to Set Goals to Make More Money
When you’re working on increasing the revenue in your business, there are 3 goals you should set:
1. A Revenue Goal
Revenue is all the money your business takes in. You could also call this number your sales.
When you measure how much money you’re taking in, you’re bound to increase that number. And when you increase your revenue, you’ll be a step closer to having more money in your pocket.
But don’t stop there. It’s possible to increase your revenue and have less money in your pocket at the end of the day.
For example, let’s say you sell cars and you buy those cars for $15,000. You could quickly increase your revenue by selling all your cars for $10,000, but it’s easy to see that would be a bad move on such a big scale.
On a smaller scale when you are putting many parts together, it’s hard to tell if you’re increasing your revenue AND putting more money in your profit.
That brings to our next goal.
2. A Profit Goal
Profit is how much revenue you made, less how much you spent to make that revenue.
Tracking your profit will allow you to identify when you’re selling $15,000 cars for $10,000. It will also tell you when you’re overspending on overhead, or if you’re priced too low. A profit goal is a must.
3. A Savings Goal
What’s all this for, anyway? That’s where your savings goal comes in.
Seeing your savings account increase month after month is an excellent reminder that you’re working towards something. Whether that something is a vacation, an instant pot, or a lump sum towards your retirement account, getting closer to your goal will motivate you to keep on going.
A Final Word on Goals
Goals only work if you work them. Many a goal has been written down only to be forgotten at the bottom of a desk drawer. Review your goal regularly and track your progress for best results.
Let’s Hear From You
What are you saving up for? Let me know in the comments.