Business Finance Goals
Profitability: That should be the goal of every business. As entrepreneurs, you need to have clear business goals that you aim to achieve, especially when it comes to business finances. Finances are the bottom-line of any business and having clear financial goals can help the business to scale more rapidly than having no goals.
There is a plethora of methods one can use to help them to set financial goals for their business, however here are the tips that I can provide that have yielded great returns for my businesses.
1. Adhere to the principles
Learning about finances is one of the best ways to help you to set financial goals. As an entrepreneur, you need to invest in educating yourself about how to generate cashflow, how to manage cashflow, how to read a financial statement and other relevant information. This can be done through reading books, enrolling in courses or following and subscribing to content from credible financial experts and more.
2. Set SMARTER goals
The most effective goals are SMARTER (Specific, Measurable, Attainable, Realistic, Time-Based, Evaluable and Results Orientated). Setting goals that are unrealistic can lead to disappointment. Yes, as an entrepreneur you need to aim high however, your finance goals need to be realistic. You cannot go from making R50 000.00 in annual revenues to making R50 million in annual revenues in just 12 months. If you can then I’d probably ask you for your tricks because that would certainly be an anomaly. Setting SMARTER goals allows you to test-and-measure the success of your goals, it allows you to re-evaluate your financial goals, which can lead to you aiming higher than you initially had and it can allow you to apply these principles to other areas of your business such as systems or building teams etc.
3. Follow the system
Within the ActionCOACH community we often talk about following the system. This not only applies to the coaches but to the coaching clients as well. ActionCOACH has resources and well-researched information that works for any business: guaranteed! For example; increasing the value offered by your product or service instead of decreasing prices leads to increased sales. Alternatively: increasing all the elements of the 5-Way formula by 10% (leads, conversions, transactions, sales, margins) can increase your profits by 61%. By following the system and applying the ActionCOACH principles, business owners can reach their business finance goals more rapidly.
Setting goals shows an intention to grow and improve. This is as much true for personal development as it is for business development. By setting financial goals in your business you will be more focused, you will waste money less and you will be able to measure your business growth. Set SMARTER financial goals using ActionCOACH principles and see the results for yourself….