Establishing company goals is a common business practice—and for good reason. Setting clear business goals influences motivation and increases performance. Whether you work at a small business, large enterprise company, or as an individual, you are more likely to succeed with strong business goals.
What are business goals?
Business goals are a predetermined target that a business or individual plans to achieve in a set period of time. These goals are often split into short-term goals and long-term goals. Business goals can be general and high level, or they can focus on specific measurable actions.
A good example of a general business goal is a mission statement. Missions statements are a general goal because they don’t have one metric that defines their success. They’re more often used as a guiding North Star—something your team can strive for as opposed to hitting hard numbers.
Alternatively, you can set specific goals—measurable goals that are easy to track as your team progresses towards them. When someone talks about “setting goals” or the “goal setting process,” they’re talking about specific goals. A common goal setting process to use is the SMART goals process.
Short-term goals are often bound by a set period of time, usually ranging from a few hours to a full year. Long-term goals can also be time-bound, but if they are, they’re typically set further into the future.
Short-term goals are often used as building blocks towards larger goals. A common strategy in business is to set multiple short-term goals to make the long-term goals more achievable.
Long-term goals are bigger visions—goals you want to achieve further into the future. A common long-term goal is a 10-year goal. Think about where you want your business to be 10 years from now. What business objectives do you want to have achieved by then? What new businesses do you want to break into, if any?
Long-term goals are often used as vision or mission statements—these goals serve as a compass for your business to help you move in the right direction. Think of your goals as a map to get you where you want to go. Long-term goals may not tell you how to get there exactly, but they point you in the right direction.
Business goals are a predetermined target that a business or individual plans to achieve in a set period of time. This article discusses the importance of business goals and reasons why you should set them for your team.