If you don’t determine where you want to go, how will you know when you get there? So that you know where you want to go and you know when you get there, you must set specific goals for your startup.
Setting goals is a key part of the planning process. Why? Because a successful plan contains goals to aim for. Clearly established goals provide direction, clarity, and motivation for you, your employees, and your organization.
But you can’t merely set goals. You must learn how to describe and achieve your goals, and compare your goals with the results.
“You can set a direct course for your future by defining your goals, or you can take the opposite position and just let the future haphazardly unfold by itself,” says author Catherine Pulsifer.
Here, we’ll explore how to set strategic goals for your startup. We recommend adopting the SMART goal model. SMART stands for specific, measurable, achievable, relevant, and time-bound.
Key Takeaways
- A goal is a statement of a desired outcome
- Every goal should be specific, measurable, achievable, relevant, and time-bound (SMART)
- Regular reviews of your goals ensures they meet SMART criteria
What Is a Goal?
So, before we dig too deeply into setting strategic goals, let’s go over what a goal is compared with a strategy, objective, and tactic.
A goal is a statement of a desired outcome that supports your company’s vision. It is a big, measurable idea, and describes what you want to achieve. For example, you might set a goal of selling your productivity software to the 50 largest hospitals in your state.
A strategy is the approach you take to achieve a goal. For example, your strategy might be to persuade hospital procurement managers to choose your productivity software because it’s effective and cost-efficient.
An objective is a measurable step taken to fulfill a strategy. For example, your objective might be to boost your market share of hospitals that use your productivity software by 5% this year.
A tactic is an activity that supports objectives and strategies. For example, your tactic might be to compile a list of email addresses of hospital procurement managers who are prospects for your productivity software.
How to Set a Goal
Choosing the right goals for your startup can be challenging. You probably want to achieve a lot of goals, such as launching new products, increasing sales by 20% or expanding your market share. However, you can’t invest all of your resources into achieving every goal.
So, how do you decide to set and pursue specific goals?
One answer: Create a SMART goal. A SMART goal is a detailed statement of your intent that includes clear criteria for defining your goal. It’s specific, measurable, achievable, relevant, and time-bound.
“The SMART method helps push you further, gives you a sense of direction, and helps you organize and reach your goals,” says the Corporate Finance Institute.
To evaluate whether your goal is a SMART goal, you must meet the following criteria.
Specific
Is the goal fully defined, and is it distinctly described and unique?
Treat your goal like a mission statement. Determine who will be involved, what you want to achieve, why you want to achieve your goal, and which resources and obstacles are involved.
For example, start with the goal described above: You want the 20 largest hospitals in your state to adopt your productivity software. Break this down to a specific goal. You might decide, for instance, that you’d like to add 10 hospital clients for our company’s productivity software by the end of the second quarter.
Measurable
Can you quantitatively measure your progress toward achieving this goal? Use metrics to measure your progress.
Using the example above, you set a desired number of new clients, so it’s a measurable goal. In addition to counting the number of clients land, you can embrace metrics to gauge your lead generation efforts, such as:
- Number of calls made or emails sent.
- Number of meetings scheduled with prospects.
- Costs of pursuing the goal.
Achievable
Can you realistically accomplish this goal? Determine the importance of the goal to your organization and what you’ll need to reach the goal.
Be realistic about what is doable and identify where you might be lacking in abilities or resources. Do not set lofty or unrealistic goals. Failing to achieve these types of goals can set you back and dampen motivation.
Using our hospital example, identify how many clients you have now and how long it took to add 10 clients. If it took around 90 days to add 10 clients in the past, then you can count this as an achievable goal. If it took more than six to nine months, determine what you need to do to achieve your goal. This might include bringing aboard more sales staff, increasing your marketing outreach, investing in a CRM (customer relationship management) system, or attending industry events.
Relevant
If you reach this goal, will your business get closer to achieving your vision?
Determine how vital this goal is to achieving your startup’s mission.
Using the hospital example, this is a relevant goal because growing your business in this market is a component of your growth plan.
“Setting goals that are completely out of reach will not make you strive harder while setting goals that are too easy will not challenge you,” says Yale University. “Make sure your goals are relevant to business objectives over time, and it is OK to adjust criteria as time passes.”
Time-bound
Provide a target date for the goal and any deliverables along the way that help achieve the goal. Set time constraints and benchmarks to track your progress. Avoid longer time frames, as internal and external factors can affect a goal over longer periods of time.
Going back to our hospital example, you could set a three-month period to achieve this goal, making it a time-bound goal. You can also establish two-week benchmarks to see how you’re progressing toward reaching the goal.
“If the goal is not time-constrained, there will be no sense of urgency and, therefore, less motivation to achieve the goal,” the Corporate Finance Institute explains.
Take the Next Step to Setting Your Strategic Goals
SMART goals are essential to your startup’s strategic plans. They help you make informed decisions, align stakeholders with key activities, and support your startup’s vision.
Be selective about which (and how many) goals you pick so you can clearly focus on achieving those goals. Otherwise, you’ll randomly head somewhere you don’t want to be — without having checked any goals off your list.
Need help developing strategic goals for your startup or identifying SMART goals? Sellerant can guide the way.