Have you made your New Year’s Resolutions yet? Many of us can easily come up with new personal goals each year, from eating better to being more active. But when it comes to setting goals for your company, it can be tricky. Where do you begin? How do you know you’re setting the right goals to reach your long-term vision, and how can you stay on track throughout the year?
Life comes at us rapidly, and even when we have the best intentions, our days often get derailed putting out fires. Having detailed business goals can help you stay on track during the year. Here are three tips from Warren Averett to help you set the right goals to position your business for success in 2023:
1. Take a hard look at where your company is right now.
The chances are that you conducted a SWOT analysis at some point but revisiting it annually can help you adjust to meet your business goals. To set your goals, it’s important to identify exactly where you are right now. What are your strengths and weaknesses right now? How do you stack up against your competition? This is also a good time to review your goals from last year. What went well? What areas need to be improved to be successful in meeting your goals this year?
2. Review your Key Performance Indicators (KPIs).
Are you measuring the right metrics to gauge your growth and progress towards meeting your goals? Do you even have the data you need to track? Accurately evaluating this can be tricky when you’re close to the business. Many companies find it beneficial to have a third-party advisor review their KPIs to ensure they are measuring the right metrics to achieve their goals.
3. Be proactive.
This sounds obvious, but it can be hard to accomplish. After all, you probably aren’t sitting around all day with nothing to do. Being proactive is hard when you’re constantly in a reactive stage, but it is possible with the right planning. Being proactive with tax planning, capital purchases and succession planning can have a huge impact on your growth.
Once you envision where you want your business to be in the future, you can think through what needs to be done to get there. It’s important to remain flexible and not get discouraged. Your steps might look very different than the business across the street and that’s okay.
When it comes to setting business goals and tracking them, having a team of advisors can make a world of difference. Find an advisor who can help you develop a business strategy to meet your short-term and long-term goals. It’s important to have someone who will treat your business like their own and can help you stay on track throughout the year. Revisiting your goals quarterly (or even monthly) can help keep them top of mind.
Donna Conte is a Principal in Warren Averett’s Finance Team Support Division and the Service Area Leader for the firm’s Client Accounting and Advisory Services. She specializes in helping businesses streamline their processes to increase profitability.