Business Goal setting for Success

Business goal setting is a critical process for any business owner. It provides a clear direction and serves as a motivator, pushing us to achieve more with each passing day. But the question is, how do we set meaningful and achievable business goals? What should be the starting point? Let’s break it down.

Should Goals Be Based on Desires?

While desires might seem like a logical place to start, they often fall short. Desires are inherently one-dimensional, as they originate from our imaginations, which are limited in scope. In contrast, the future offers boundless opportunities that we cannot predict or fully imagine.

What about Monetary Goals?

Setting purely monetary goals can also be problematic. Financial desires often have no clear endpoint. For example, if you set a goal to earn £60,000 in a year, you might find yourself wondering, “Why stop there? Wouldn’t I be happier earning £75,000 or even £100,000?” This mindset makes it difficult to define a realistic and achievable monetary goal within a set time frame. In many cases, such goals can end up being impractical or demotivating.

The Key to Setting Effective Goals: Time

The most precious and limited resource you have is time. By focusing on time, you can set realistic, measurable goals that align with your business’s capacity. Here’s how:

1. Account for Non-Billable Activities: Allocate time for essential tasks like administrative work, meetings, content creation, and networking.

2. Calculate Your Total Capacity (Billable hours): Determine how many hours of service you and your team (if applicable) can realistically provide within a specific period, such as three months, six months, or a year.

Once you have these figures, your goals become clearer. You can identify:

• The number of clients you need to secure.

• The income you aim to generate.

• The level of expenses you need to prepare for.

A Quick Example

Let’s say you’re a photographer with 30 hours available each week. After accounting for admin work, meetings, and marketing, you find that you can dedicate 20 hours to client work. Over a three-month period, that’s approximately 240 billable hours. This figure becomes the foundation for your business goal-setting process.

What About Pricing?

At this point, you might be asking, “How much should I charge for my services?” Pricing is a critical factor that deserves its own in-depth discussion, which we will cover in a separate article. Stay tuned!

The Added Bonus: Time Auditing

By calculating your business’s capacity, you’re not just setting goals; you’re also conducting a time audit. This exercise helps ensure that you’re allocating your time efficiently and focusing on activities that truly matter.

Take Action

Now it’s your turn. Calculate your total capacity and set a realistic quarterly business goals. By focusing on what you can achieve within the time you have, you’ll create a clear roadmap for success—and avoid the pitfalls of unrealistic expectations.

Written by

Mrudula Muralidharan

Founder and Finance Coach

Million Goals