SMART Goal Setting 13th January 2K16

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Bookkeepers Blog, Best Hints & Tips Guaranteed  by Tash-Ly 

SMART Goal Setting – 13th January 2K16

Last week I introduced the idea of goal setting for the new year and suggested one tool I find particularly helpful is the S.M.A.R.T method. This week I will run through a worked example of how we can apply the principles of the S.M.A.R.T method.

S.M.A.R.T goals can be extremely effective in financial management, for example Josie runs a small consultancy business and would like to increase her income from it this year. Josie decides to use S.M.A.R.T goals to help her achieve this.

The first step in the S.M.A.R.T goals acronym is:


Specific
Be very specific of what you want to achieve / what your desired outcome is

Josie needs to determine more specifically what her goal is, rather than a broad and ambiguous phrase such as “increase her income”. By using non-specific terminology it is very hard to define with any clarity what Josie wants to achieve, be able to measure her progress and set in place any steps to achieve her goal.

Examples of more specific terminology could include Who, What, Where, Why, Which, When.

  • Josie would like to increase her profits by $25,000 over the next year.
  • Her current profit level is $50,000 – so a 50% increase is her goal
  • She is a sole trader so will be managing that process herself, however will engage her bookkeeper and accountant to help track her progress.
  • Josie will investigate new channels for revenue to come into her business through networking
  • She intends to start attending local business networking events each month
  • And she intends to meet with prospective leads to build her business profile each week
  • Her motivation is driven by a desire for a holiday to Europe in the following year.

These specifics will give Josie a great foundation to start building some goals to “increase her income”.

Next week, I will look in more detail at the next element of S.M.A.R.T goal setting – Measurable, continuing with Josie’s consultancy business.


What specific goals do you have for 2016?
Can you be specific about Who, What, Where and Why?


Disclaimer: All or any advice contained in this blog/newsletter is of a general nature only & may not apply to your individual business circumstances. For specific advice relating to your specific situation, please contact your accountant or other professional adviser for further discussion.