Set Your Objectives - Choose Your Why
before understanding how to set our objectives, we need to first look at what they actually are objectives are the goals and targets that we have and the things that we wish to achieve in our business. In other words, the business objectives are the reason why we do our work and without why there is no how meaning, if we do not define our objectives, we will not know how to design our business and what actions to take objectives exist in every business regardless of its size. With a large scale corporate, it might be more complex to set them and the focus will be making sure everybody in the organization is aligned on the same objectives. But as small businesses, we definitely have challenges to. The main challenge is that it's all up to us. If we do not define the objectives, nobody will force us to do so. And therefore, as a small business, it's a lot easier to lose sense of direction and purpose in our business. So it doesn't matter if the objectives are discussed weekly in a compan...
y meeting or just lie in your head, they always exist and they affect every detail in your business, every small detail you decide on in every action you take. Now that we understand the importance of business objectives, let's look at a couple of examples, very common objective that we business owners set Has to do with revenue, for instance, achieving $100, of annual revenue in our business. Now, how do we turn it into an achievable workable strategy, We break it down into actions that give it a timeframe in order to achieve $100,000 in revenue, start a campaign, bring five more paying clients every month. Now that we broke down our goal into a task, we know what we should do next. If by the end of the month we haven't been able to bring those five paying clients, then we could determine that the customer acquisition is a part of our business that is standing in our way to achieving our goals and we need to improve. Let's look at another example of a business objective popularity, let's say that we define an objective for our business to be ranked as a top rated seller on fiber. Now it's time to break it down and give it a time frame. If we want to achieve the aforementioned objective within a year, then we can decide that we need to make sure that we get at least 75% of our clients rating us at at least 4.8 each month. Another example for optimizing for popularity could be a restaurant wanting to make sure that all table reservations are booked way in advance and create a waiting list. In that case, we can set an objective to receive positive reviews from the top five critiques in our area. When we set business objectives, we are actually underlying the base for our strategy, A business with no objectives is similar to a race driver who does not know where the finish line is and drives in all directions. Navigating with no destination and no chance of winning the race. In addition, inevitably, if we achieve our goals and make progress, our business will grow and we'll have more people involved, making sure that all members of our team are aligned and working on achieving the same goals is crucial for the progress of our business. Again, imagine different parts of a racing car pushing in different directions this way, you're not going anywhere, communicating our business objectives is the most crucial thing, even to ourselves and of course, when onboarding more members to our team. So our business objectives are a reflection of where we want to be and what we want to achieve. This is the way to structure our goals and understand why are we even in this business in the first place and determine how we should go about it. Another important thing to note is that business objectives will change over time. Sometimes it takes longer and sometimes it happens fairly quickly. What matters is that we set up Assistant according to which we constantly measure and assess our objectives to determine if and when we need to make changes to them or implement new ones. A good example would be a business in its first or second year, which might set a goal of survival, given the fact that many of the businesses close down shop after the first year, that objective translates to a set of actions that we need to take in order to make sure that our business survives. After ensuring our businesses survival and operating in an environment with a lot more stability. Our objectives and goals will change and we will shift our actions and work on growing and developing our business and not just surviving This could of course change again. Shifting back to survival mode is something that a lot of business owners have experienced during the COVID-19 crisis. Those who put the effort into setting clear objectives had a lot more chances of succeeding well with all that in mind. A question arises if our business is simple and so are our goals. We know what we want to do and we are doing a good job, focusing on getting there. Then why do we need to spend time and effort writing down business objectives? The answer to that is simple and will be the foundation of everything we do in the future. We need business objectives in order to assess and evaluate our work and results. Without the objectives, we will not have a method of measuring our success in understanding whether or not we're on the right track or do we need to improve and change certain things to achieve better results that will get us closer to our goals more on that in the next chapter