Running a small business is full of challenges, and achieving success often depends on setting clear, actionable goals. That’s where SMART goals come in.
Whether streamlining operations, expanding your customer base, or increasing revenue, SMART goals provide a framework to turn ideas into results. If you’re just starting out, a strong foundation is essential. Read our guide on how to start a small business to set yourself up for success.
In this article, we’ll explain what SMART goals are, how they benefit small businesses, and how you can use them to stay on track and measure progress effectively. Let’s start by breaking down what makes a goal SMART.
What are SMART goals?
SMART goals are designed to bring clarity and focus to your business objectives. The acronym stands for:
- Specific: Define exactly what you want to achieve. A goal like “improve customer satisfaction” is too broad, but “increase positive customer feedback scores by 20% in six months” is clear and actionable.
- Measurable: Include metrics to track progress. If you can’t measure a goal, it’s hard to know whether you’re making progress or when you’ve succeeded.
- Achievable: Given your resources, goals should stretch your abilities but remain realistic. For example, aiming to grow revenue by 10% may be feasible, while aiming for 100% growth overnight may be challenging!
- Relevant: Align your goals with your broader business objectives. Ask yourself, “Does this goal contribute to my long-term vision?”
- Time-bound: Set a deadline. Having a timeframe creates a sense of urgency and helps maintain focus.
Using SMART goals is particularly effective when creating a business plan, as it helps outline measurable milestones that guide your strategy.
The benefits of setting SMART goals
For small businesses, time and resources are often in short supply, so it’s crucial to focus efforts where they’ll make the most impact. SMART goals can help you do just that by:
- Improving Clarity and Focus: By defining exactly what you want to achieve, you eliminate guesswork and direct your energy towards a clear objective.
- Boosting Productivity: SMART goals break large tasks into manageable steps, making it easier to track progress and stay motivated.
- Encouraging Team Accountability: When everyone understands the goal and how success will be measured, it’s easier to work together effectively.
- Driving Growth: Whether expanding your customer base or increasing revenue, SMART goals ensure your efforts align with your long-term business ambitions.
For example, instead of saying “increase sales,” a SMART goal might be, “Grow monthly sales by 15% over the next quarter by targeting repeat customers.” This provides a specific, measurable target that everyone can work towards.
How to write SMART goals for your business
In this section, we’ll walk you through how to create SMART goals for your small business. By focusing on each element of the SMART framework, you can set goals that are actionable, achievable, and aligned with your business needs.
Let’s dive into what each letter stands for:
S: Writing a specific SMART goal
Clarity is key when setting goals. Specific goals give you a clear path and help you avoid a vague or scattered approach. With specificity, your team can understand the objective and how to contribute.
Here’s how to make your goals specific:
❌ Improve website traffic.
✅ Increase website visits by 25% in the next three months through SEO improvements and blog content.
M: Writing a measurable SMART goal
If you can’t measure progress, you’ll struggle to know whether you’re on track or if your efforts are paying off. Adding measurable metrics ensures you can track performance and make data-driven decisions.
Here’s how to make your goals measurable:
❌ Grow our customer base.
✅ Add 100 new paying customers by the end of the quarter using a referral programme.
A: Writing an achievable SMART goal
Ambition is great, but setting goals that are too lofty can lead to frustration. Instead, aim for realistic targets that challenge you while remaining within reach, given your resources and capabilities.
Here’s how to make your goals achievable:
❌ Triple our sales in one month.
✅ Increase sales by 20% in three months by introducing a loyalty programme.
R: Writing a relevant SMART goal
Relevance ensures that your goals align with your broader business strategy. A goal that doesn’t contribute to your overall mission or priorities may waste time and resources.
Here’s how to make your goals relevant:
❌ Add a product category unrelated to our niche.
✅ Launch a premium version of our bestselling product to target high-value customers.
T: Writing a time-bound SMART goal
Deadlines create urgency and accountability, helping you stay focused and avoid procrastination. Without a clear timeframe, even the best goals can lose momentum.
Here’s how to make your goals time-bound:
❌ Launch the new product line soon.
✅ Launch the new product line by 15th May, before the summer sales season.
By following this framework, you’ll ensure your goals are structured for success. SMART goals are not just a checklist; they’re a practical way to drive meaningful results for your business.
Hopefully, you now have a better understanding of SMART Goals and how to write them. Still need extra support. We’ve got you covered. You can download our goal-setting checklist so you have everything you need to start achieving your goals.