Why Goal Setting is the Key of your Money Making Plan
Setting financial goals is starting point for every successful business. Lot of people decide to skip this step and start spending their savings on luxury items while expecting a big cash influx from their business scheme.
This is nothing else than a “Highway to bankruptcy”. While working on your money making plan it is important to cut all the unnecessary spending. This is the time when you need to be completely solvent, so you can always have enough money if something goes wrong with your business.
First step of setting your goals is the categorization. There are two kinds of categorization that need to be done. First one is to determine each goal on your list a “want” or a “need”.
You thought you knew that already, but when you start reassessing each goal individually, you realize that this is not so easy after all. After you finish that you should jump to dividing goals into three categories according to the time you will need to accomplish each one.
Short-Term Goals
In life goal setting would be something like: buying some new clothes, organizing a party, fixing your car, paying for vacation etc.
When it comes to business these become stuff like: paying taxes, paying off smaller loans, going to a business seminar, adding small investments etc.
Basically short-term goals are everything you need to accomplish before you start some more serious expansion of your business or find someone who’s going to provide your company with more serious venture capital funds.
Medium-Term Goals
These are the goals that you will be able to accomplish in five year term. Soviets and Chinese called this a five year plan and their whole economy was based on them.
If you don’t want your business to end up like Soviet Union, you need to be much more realistic when setting your medium-term goals. This can include expanding your business to other areas, hiring more workers, buying new technical equipment etc.
Long-Term Goals
Long-term goals will move your business to another level. You will need more then five years to accomplish them. When you realize at least one goal from this group, it will be the proof that your business is standing on stable foundation and that it has nice perspective.
Final Adjustments of Your List
Before you start with accomplishing your categorized goals, you’ll need to give them one more reassessment. From your list you should take out the ones that can’t be considered as SMART goals.
Here SMART stands for: Specific, Measurable, Attainable, Realistic, and Timeline. Establishing which items from your list can fall under this category, will be much easier with making a small table that should look something like this:
| Goal: | ||||
| Tasks | Priority | Approximate cost | Target start date | Target completion date |
| Short Term | ||||
| Medium-term | ||||
| Long Term | ||||
In the end some serious business venture might seem far to you, but remember, all successful people who later made millions, started from setting their goals and drawing tables like these. With smart and systematic approach to business and finance you will be able to calculate all the risks and give yourself enough time to overcome any problems that might come ahead.
By accomplishing your goals one by one your venture will constantly upgrade and you will see your profit grow every single day.
Share this:
Category: Financial Planning
