Before you go into any new business, the first thing about any business is the business idea. In the business idea, is found the goal of the business. Your business idea is not complete if you cannot state clearly, what the overall purpose and goals of your business are.  Read this post about How to get a working Feasibility Study / Business Plan.

Many business persons does not know that one major cause of business failures is lack of clear business goals which lead to the achievement of the overall business purpose. Your business goals are the driving forces of your business and without them, you are not far from being lost. Where you are, where you intend to be in the next 2, 3, 4, 5 to 10 years in business, and how you plan to get there are all aspects revealed by your business goals.

In this post, I shared nine powerful benefits of having a business goal. Read on…

1.    Provide Needed Direction

So many people in business are lost. They are directionless. Ask them what plan of action they have to move the business from where it is to where they dream to have it in a few years, and you will find out that there is no such plan. They lack direction. Nothing gives direction as having well formulated goals that point to where the business hopes to be in the next few years. When goals are so clear, everyone on the business knows where the business is heading and how it will get there.

In setting goals, you decide on where you are going and the road that leads you there and unless you are blind, you will become more directed in the pursuit of your goal. There could even be many directions but you know just which one you must take. You cannot be directed if you don’t know where you are going. So, goals are like the compass that guides you from getting lost.

2.    Provide Needed Focus

One reason why people fail in business is lack of focus. They are unable to direct their energies to one or few things which are most important to the success of their business. Rather they try to follow everything that looks promising and at the end of the day, they achieve nothing.

When you have a well-formulated goal, you know what constitutes a distraction, even when it looks so appealing and promising. There will be business deals which you will need to turn down, new products which you will need to reject, new markets calling, which you will need not to answer, and other distractions which have nothing to do with business, which you will have to be able to identify and say NO to.

3.    Enables Optimal Utilization of Resources

Resources are never enough. They have never been and will never be. And so one thing that can really be a deciding factor in your business success is the ability to allocate and utilize your limited resources, optimally.

Your resources include men, money, materials, machines and space. When you set goals, you plan on how to allocate these resources in such a way that you can make the best use of them. You are interested in achieving the highest priority goals first and the lesser, last. Without setting goals, you are will be very likely to waste your resources by allocating them wrongly.

4.    Facilitates Decision Making

In business, and on a daily basis, you will be making decisions. Decision to hire a new staff and what kind of person to hire; decision to set up a new office and where to set it up; decision to purchase a new machine and what kind of machine to purchase; decision to expand the business and when to expand; decision to get into partnership and with who to get in with; and so on.

What kind of decision you make will strongly depend on what goals you have set and how that decision will enhance the achievement of that goal. Your goals are always going to give you a lead in making decisions.

5.    Provokes Actions

What you carry out on a daily basis on your business, are actions and activities. Daily you make phone calls, organize and attend meetings, go out to survey markets, make purchases, meet with new clients and customers, carry out productions, work on your brand, study the competition, get feed-back on your services, and so on.

Having goals spurs you up to take action instead of sitting back to relax. When you have goals, at every point in time, you have a clear picture of how much work you have to do and how much grounds still need to be covered, if you must achieve your overall business purpose. This spurs up action. You can’t know that you have so much in your hands to achieve in a day, and still be able to go to sleep and wake at 10 am.

6.    Simplifies & Clarifies Work

Having goals makes work clearer and simpler, thus requiring less energy to achieve success. When you set clear goals, you set specific goals and when your goals are specific, they make work easy and clear for everyone. Your workers can easily take initiative because they have a clear understanding of where you intend to get to and know exactly how to get there. In that case you can sit back securely and trust that your staff will be able to do the right thing in your absence.

Proper goals-setting goes into breaking down big and abstract theories, ideologies and philosophies into little easy-to-accomplish daily tasks and activities which can easily be carried out by your workers. I have come across businesses where the workers personify the vision and goals to the extent that you hardly know who owns the business.

7.    Organizes Work

When you set goals you can be clear on what you want to achieve at each point in time, know what will be needed to achieve each thing, know what actions that will be taken to achieve each and know who will be responsible for taking each necessary action. This is organization.

When there are goals, it is easy for each worker to determine the work that is needed to be done each day, week and month on the business. With goals, you can compartmentalize your business and be able to handle each different aspect separately while thinking of them as a collective group of aspects that all together enhance the achievement of your goals.

Well set goals will tell you what has to be done on Monday and Saturday. They tell you who are working well and who is not and what has to be done to improve.

Staffs and Employers should Read

8.    Ensures Ownership

Setting goals with your team will create a sense of belonging and ownership of the business, amongst your team members. When your workers can bring their desires for the business, to the goals-setting table and be able to share them and see them considered, they go on with this strong feeling that whatever the business is, it is because of their contribution. Such a feeling is capable of making any worker put in 100% into the business. 

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9.    Helps Measure Success

When you have business goals, you can always stop to look back and see how far you have come and be able to determine how much still lies ahead to cover. The reason why this is possible is that well formulated goals are measurable. Which means you should be able to say exactly how much has been achieved for a given time period.

Without well formulated goals, you will never be very sure of how much you have achieved on your business and how much you still have left.

These are 9 powerful benefits of having well formulated goals for your business. I am sure you now want to know how to set your business goals. See my post titled “How To Set SMART Goals For Your Business for Poultry Farm". Leave your comments below.

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