Increase Profit by Setting Goals

It’s that time of year again! Not just time for year-end reports and the beginning of tax season; it’s time to look back and evaluate the past year and set new goals for the coming New Year!

Setting goals is easy… achieving those goals takes a plan as you well know. So how do we know our plan is working as we progress through the year? Much the same way progress is measured on a road trip… with numbers! How many, how much and by when?

Some call these measurable objectives!

If your goal is to sell 500 more widgets this year… a measurable objective might be that by April you should have 125 more sold, by July 250…. If your goal is to decrease operating costs… create timeline that includes measurable results!

Once a draft of your timeline is complete, fill in supporting details of how and who for each objective. For instance, what is the budget to accomplish the objective, what company resources are available to use in accomplishing the objective and who will be accountable for the objective’s success?

Finally, be sure to review your draft with those who will be responsible for the final outcome and consult those within your company or trusted associates outside of your company for recommendations before completing the final version. Make sure the goal supports the company mission and visions.

Post the final timeline with expected objectives in a place where actual results can be tracked along-side and evaluated by those who are responsible for meeting the end results. Meet as often as needed to allow time to check in and offer pats on the back or make necessary revisions to improve results.

Simple Sample

Company Mission: Be the number one spring manufacturer in America by manufacturing top quality industrial springs and adding value to our customer’s supply chain.

2010 Goal: Increase profits by 20% by selling 100 more large industrial springs

Accountable: Marketing manager Tim Brown will oversee this goal and report progress at each month end to Owner Rich Springer… outcome of this project used to weight year end bonus.

Budgeted actions allowed are:
Increase dealer promotions by 5%
Increase sales person incentives by 5%
Educate businesses on the superb quality of Springer and exceptional customer service of our company through ads and articles in relevant trade publications
Increase warranty offered on springs
Provide small samples at trade shows

Timeline with expected outcome: (roughly 10 more / month once campaign is in full force)

Jan (3) Begin sales person incentives
Feb (8) Begin dealer promotions, Ads begin in trade magazines
Mar (15) Spring Trade Show Colorado
April (25) Article on spring alloys published in trade magazines
May (35)
June (45)
July (55)
Aug (65) Trade Show in Texas
Sept (75) Article on production quality of springs published in trade magazines
Oct (85)
Nov (95)
Dec (100) Goal Achieved

For More Great Goal-Setting Help

Setting Goals the S.M.A.R.T. way:
Author and Business expert Jim Donovan spells out goal setting the S.M.A.R.T. way:
“When setting goals, it is important to use the S.M.A.R.T. method, whereby each goal is Specific, Measurable, Actionable, Realistic, and Timed. Specifically, what will you accomplish by when? Then, from your list of goals, you can develop 30–90 day milestones and further reduce those to identify the daily actions that must be taken in order to succeed.”
(www.articlesbase.com/corporate-articles/a-crystal-clear-vision-ensures-success-throughout-your-organization-208527.html)

www.goal-setting-guide.com/smart-goals.html is another great site breaks down the S.M.A.R.T. acronym and provides detailed tips to this fabulous and simple method!

Final Thought

Often we get so caught up in our drive to set goals that we leave out an important ingredient – fun! At least that is what often motivates me to participate in many projects. Okay.. sometimes the motivation is money, sometimes a trip somewhere or time with someone special.
What motivates your team? What is going to motivate your customers to stick with you? What is going to motivate a potential customer to switch? What motivates you?

Happy & Prosperous New Year to You