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How to write SMART goals

It’s easier to succeed when you have clearly defined objectives that are based in reality.

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5-second summary

• Teams often fall short of meeting their goals due to a lack of consensus on the definition of success.
• SMART goals use a specific set of criteria to help ensure that objectives are clearly defined and attainable within a certain timeframe.
• Working through each step of creating a SMART goal can reveal instances where priorities and resources are out of alignment.

Meet Jane. She’s a product manager at a mid-sized tech company – let’s call it Techfirm, Inc. Jane has been tasked with increasing usage of Techfirm’s mobile app.

She knows she’ll need all hands on deck to make this happen, but when Jane has set team-wide goals in the past, they’ve quickly fallen off track. Nobody seemed to have a clear understanding of what success should look like; progress wasn’t monitored closely enough, and inevitably, that important objective slipped to the back burner (before toppling off the stove entirely).

That’s why, this time around, Jane plans to leverage SMART goals for setting an action plan and staying the course.

Want to get started right now?

Use our template to define the different components of your SMART goal.

What are SMART goals?

The SMART in SMART goals stands for Specific, Measurable, Achievable, Relevant, and Time-Bound.

Defining these parameters as they pertain to your goal helps ensure that your objectives are attainable within a certain time frame. This approach eliminates generalities and guesswork, sets a clear timeline, and makes it easier to track progress and identify missed milestones.

An example of a SMART-goal statement might look like this: Our goal is to [quantifiable objective] by [timeframe or deadline]. [Key players or teams] will accomplish this goal by [what steps you’ll take to achieve the goal]. Accomplishing this goal will [result or benefit].

Let’s use Jane’s objective to work through each component.

S: Specific

In order for a goal to be effective, it needs to be specific. A specific goal answers questions like:

• What needs to be accomplished?
• Who’s responsible for it?
• What steps need to be taken to achieve it?

Thinking through these questions helps get to the heart of what you’re aiming for. Here’s an example of a specific goal Jane might come up with:

Grow the number of monthly users of Techfirm’s mobile app by optimizing our app-store listing and creating targeted social media campaigns.

M: Measurable

Don’t underestimate the outsized impact of short-term goals

Specificity is a solid start, but quantifying your goals (that is, making sure they’re measurable) makes it easier to track progress and know when you’ve reached the finish line.

Jane and her product team want to grow the number of their mobile app users – but by how much? If they get even one new signup, that’s technically positive growth – so does that mean they’re done? Same goes for their strategy – how many platforms will they advertise on? 

To make this SMART objective more impactful, Jane should incorporate measurable, trackable benchmarks.

Increase the number of monthly users of Techfirm’s mobile app by 1,000 by optimizing our app-store listing and creating targeted social media campaigns for four social media platforms: Facebook, Twitter, Instagram, and LinkedIn.

A: Achievable

This is the point in the process when you give yourself a serious reality check. Goals should be realistic –  not  pedestals from which you inevitably tumble. Ask yourself: is your objective something your team can reasonably accomplish?

Jane might look at her goal and realize that, given her small team and their heavy workload, creating ad campaigns for four social platforms might be biting off more than they can chew. She decides to scale back to the three social networks where she’s most likely to find new clients.

Increase the number of monthly users of Techfirm’s mobile app by 1,000 by optimizing our app-store listing and creating targeted social media campaigns for three social media platforms: Facebook, Twitter, and Instagram.

Safeguarding the achievability of your goal is much easier when you’re the one setting it. However, that’s not always the case. When goals are handed down from elsewhere, make sure to communicate any restraints you may be working under. Even if you can’t shift the end goal, at least you can make your position (and any potential roadblocks) known up-front.

R: Relevant

Here’s where you need to think about the big picture. Why are you setting the goal that you’re setting? Jane knows that the app is a huge driver of customer loyalty, and that an uptick in their app usage could mean big things for the company’s bottom-line revenue goals. Now she revises her statement to reflect that context.

Grow the number of monthly users of Techfirm’s mobile app by 1,000 by optimizing our app-store listing and creating targeted social media campaigns for three social media platforms: Facebook, Twitter, and Instagram. Because mobile users tend to use our product longer, growing our app usage will ultimately increase profitability.

T: Time-bound

To properly measure success, you and your team need to be on the same page about when a goal has been reached. What’s your time horizon? When will the team start creating and implementing the tasks they’ve identified? When will they finish?

SMART goals should have time-related parameters built in, so everybody knows how to stay on track within a designated time frame.

When Jane incorporates those dates, her SMART goal is complete.

Grow the number of monthly users of Techfirm’s mobile app by 1,000 within Q1 of 2022. This will be accomplished by optimizing our app-store listing and creating targeted social media campaigns, which will begin running in February 2022, on three social media platforms: Facebook, Twitter, and Instagram. Since mobile is our primary point of conversion for paid-customer signups, growing our app usage will ultimately increase sales.

Knowing how to set goals using the SMART framework can help you succeed in setting and attaining goals, no matter how large or small.

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• What are SMART goals? Examples and temp ...

What are SMART goals? Examples and templates

Vague goals that lack clarity are often left undone, even if they have great potential. Transform fuzzy objectives into attainable goals with the SMART goals framework. SMART is an acronym for specific, measurable, achievable, realistic, and time-bound. In this article, we'll dive into why each element of the SMART goals acronym is essential and how to apply them to your own goals.

But hitting an ambitious goal isn’t just about reaching for the stars—you also need a path to get there. That’s where SMART goal setting comes in. With SMART, you can make sure every goal—from project goals all the way to larger company objectives—has everything you need to achieve it. Here’s how.

What are SMART goals?

So, what are SMART goals? Fundamentally, SMART goals are a way of setting objectives that are clear, trackable, and achievable. The SMART goals acronym stands for five crucial qualities your goals should have: 

Measurable 

Achievable 

When you're deliberating the meaning of SMART goals, think of them as a tool to transform lofty resolutions into a concrete roadmap. The SMART goals acronym can help you build a blueprint for success in personal and professional settings alike.

How to write SMART goals

Writing SMART goals is all about breaking down your objectives into smaller, more manageable components that are easy to track and achieve. Here's a simple step-by-step guide to make the goal-setting process a breeze.

Keep in mind that you’re setting your SMART goal to attain a specific objective—not a broad one. You don’t just want any initiative to succeed; you want your specific project to succeed. To make sure you can achieve them, make sure your goals are specific to what you’re working on.

For example, instead of creating a goal to raise more money, you might create a goal to raise $20,000 by the end of the year. This is much more specific and gives you a roadmap to work off of. In this case, you can break down how much you need to raise each day to hit your goal and then create an action plan that enables you to hit that number every day.

The “M” in SMART stands for measurable, which helps you evaluate the success or failure of your project. Your goals should have some sort of objective way to measure them—whether that’s a deadline, a number, a percent change, or some other measurable element.

One way to do this is with benchmarks. Benchmarks show you what’s “normal” for specific, recurring scenarios in your company, so you know what to expect. Using standardized benchmarks, you can set more relevant goals that are easier to measure. For example, let’s say you have a benchmark showing that you have three new marketing campaigns each year to help you hit key performance indicators . You can then use that benchmark to set measurable goals to track progress for both the launches and their related KPIs.

You don’t want your goals to be easy to achieve, but you also want to make sure you’re setting goals that you could, conceivably, hit. Achievable says that your goals shouldn't be totally outside the realm of possibility. Ask yourself this question: Is the goal within your project scope ? If not, it’s not Achievable.

For example, let’s say you want to learn to speak Spanish in order to be competitive in your field. If you’ve never spoken a word of Spanish before, you can’t expect to be fluent by next month. That simply isn’t an achievable goal. However, you could set a goal to learn from your foreign language app for 20 minutes every day. By establishing a consistent practice, you can set a more achievable goal.

What about stretch goals—are those achievable?

Stretch goals are goals that are purposefully challenging. For example, if you usually get 30,000 monthly visitors to your website, a stretch goal would be to get 50,000 monthly visitors. That’s a big increase! But this stretch goal is still within the realm of possibility. Make sure you make your stretch goals ambitious, not impossible—like aiming to go from 30,000 monthly visitors to 300,000 monthly visitors, for example.

The “A” and “R” of SMART are closely related. In addition to setting attainable goals, you also want to set Realistic ones. For example, maybe a goal is achievable, but getting there would require every team member to work overtime for six weeks straight. Even though it might be an achievable goal, it’s not a realistic one. Make sure yours is both by creating a clear resource management plan .

Using our attainable goal example of learning to speak Spanish, the goal of setting 20 minutes aside each day to practice Spanish is both realistic and achievable. On the other hand, a goal to practice speaking Spanish for two hours every day is probably not realistic for most working adults, even though it’s technically achievable.

Your SMART goal should have an end date. Without a time limit, your project could drag on, have unclear success metrics , and suffer from scope creep . Deadlines provide a sense of urgency so that short-term tasks don’t drag into long-term goals unnecessarily. If you haven’t already, make sure you outline a clear project timeline .

Deadlines are crucial to implementing goals, since they pretty much force you to take action. If you want to have more focus time at work, you can decide to set a goal to only check your email for 30 minutes every day. But without a deadline, it’s easy to brush it off. Imagine instead if you set a goal to only check your email for 30 minutes every day for one week—now, it starts to feel more attainable.

SMART goals pros and cons

Making sure your important goals have all of the SMART components might be more time-consuming than setting regular goals, but the value you get from SMART goals outweighs the additional time spent on the goal-setting process. Goals shouldn’t be something you set and forget—they’re a key part of your project planning process. When setting SMART goals, here’s what you and your team can expect.

Pros of SMART goals

Clear communication and alignment. When your project team knows exactly what they’re working towards, they’re more motivated and aligned as a team. Team members who know how their individual work contributes to broader company goals are 2X as motivated as their counterparts. Setting and sharing SMART goals can help you boost your entire team’s motivation.

Clarity towards project success. Have you ever gotten to the end of a project and not really known if you hit your project goals or not? SMART goals help you set clear goals, so you can avoid vague or confusing goal language.

Clear roadmap and finish line. With SMART goals, you know exactly what you want to achieve and when you expect to achieve it. You’ve verified that these goals are realistic and achievable. And you know you’ll be able to measure them to see if you hit them or not.

Trackable metrics. When you finish your project, SMART goals help you evaluate its success. Don’t beat yourself up if you don’t achieve it. In fact, at Asana, we aim to hit about 70% of our goals. That way, we know we’re setting challenging—but possible—goals. Whether you hit your goal or not, SMART goals can help you evaluate your goal, and you can learn from that.

Effective resource allocation. SMART goals make it easier for managers to distribute necessary resources efficiently, whether that's staff, budget, or even time.

Motivation and career development. When goals are achievable and relevant, it boosts team morale. It also creates opportunities for individual career development, as team members may need to acquire a new skill to meet their objectives.

Cons of SMART Goals

Oversimplification. Although the SMART goal framework can be incredibly effective for clarifying objectives, it may also lead to the oversimplification of more intricate, multilayered goals. If your goal is complicated, consider breaking it down into smaller sub-goals before using the SMART framework.

Short-term focus. The emphasis on time-based objectives might discourage more visionary planning, especially around the long-term mission of your business. If this applies to your situation, try creating a vision statement instead. 

Potential to hinder creativity. SMART goals can box you in. Their strict guidelines make you zero in on specific tasks, leaving little room for unexpected, game-changing ideas.

Possibility for a narrow focus. Adopting a SMART objectives approach could lead to tunnel vision, causing team members to lose sight of the organization's broader strategic goals. To avoid this, make sure to connect your SMART goals back to larger organizational objectives —so it’s clear why they matter and how they’re contributing to business success. 

Resource intensive. Smaller teams might feel a bit overwhelmed by the need for measurable outcomes. This is because tracking those metrics often requires investing time and money in specialized analytics tools. 

5 SMART goals examples

Ready to get started? Before you write your own, take a look at these five examples of SMART goals to see how each one aligns with the SMART criteria.

1.  Business goal

Example: Produce at least three different types of large-scale marketing assets (e.g. ebook, webinar, videos, sales one- or two-pagers) per month for Q1.

Why it’s SMART: This business goal is specific (large-scale marketing assets) , measurable (three different types) , achievable and realistic (this depends on how many project team members there are, but we can assume there are enough to cover the three assets per month), and time-bound (per month for Q1) .

2. Team goal

Example: The product team will partner on five cross-functional projects focused on usability testing, customer surveys, customer marketing, or research and development during the first half of FY22.

Why it’s SMART: This goal is specific (projects focused on usability testing, customer surveys, customer marketing, or research and development) , measurable (five cross-functional projects) , achievable (five projects in six months), realistic (the project spans the entire product team), and time-bound (during the first half of FY22) .

3. Professional goal

Example: During 2021, I will develop my management skills through mentorship, with at least two mentees from either our company Employee Resource Groups or my alumni network.

Why it’s SMART: This goal is specific (management skills through mentorship) , measurable (at least two mentees) , achievable and realistic (this person has given themselves two different avenues through which to find mentees), and time-bound (during 2021) .

4. Personal goal

Example: I will train to run the March San Diego half marathon in less than two hours.

Why it’s SMART: This goal is specific (San Diego half marathon) , measurable (in less than two hours) , achievable (two hours is an ambitious but doable pace for most runners with proper training), realistic (this person has established they will train in preparation for the half marathon), and time-bound (March) .

5. Nonprofit goal

Example: We will provide 100 hours of free tutoring for middle school students in math and history during the month of February.

Why it’s SMART: This goal is specific (tutoring for middle school students in math and history) , measurable (100 hours) , achievable and realistic (depending on the amount of volunteers the nonprofit has), and time-bound (during the month of February) .

6 steps to make your goal SMART

When you’re ready to set your own SMART goal, kick things off by jotting down your project objective in a sentence or two. Then fine-tune it with each of the five SMART attributes. 

To make the goal-setting process smoother, you can use this SMART goals template to get some hands-on practice in setting your SMART objectives.

1. Initial goal:   Write down whatever your initial goal is. Don’t worry about it not being completely SMART—we’ll get to that later in the template.

Example: I want to improve our company brand on social media.

2. Make it Specific:   Does your goal define exactly what you want to do? If not, re-work the language to make it specific to your particular project.

Example, continued: Improve our company brand on Instagram with company-specific hashtags.

3. Make it Measurable:   Have you established how you’ll measure your goal once your project is complete? If not, add a way to measure success or failure at the end of your project.

Example, continued: Develop company-specific hashtags to generate 1,000 new Instagram followers.

4. Make it Achievable:   Is your goal something you can achieve, given your project scope? Make sure this specific goal falls within your project capabilities.

Example, continued: Develop and use company-specific hashtags, in conjunction with popular hashtags in our industry, to generate 1,000 new Instagram followers.

5. Make it Realistic:   Can your project team reasonably hit your goal? Even if it’s a stretch goal, make sure this is something you can accomplish with your resources.

Example, continued: Post once daily on Instagram, and ensure every post has a mixture of company-specific hashtags and popular hashtags in our industry in order to generate 1,000 new Instagram followers.

6. Make it Time-bound:   When will you achieve your goal? Make sure you clarify your target date or time frame in your SMART goal.

Example, continued: Post every workday on Instagram for the first half of FY22. Ensure every post has a mixture of company-specific hashtags and popular hashtags in our industry in order to generate 1,000 new Instagram followers by June 30th.

What to do after creating your SMART goals

Do you track your goals in emails, meetings, or spreadsheets? If so, you’re not alone. According to the Asana Goals Report , 53% of businesses track their goals via email, 36% track them in spreadsheets, and 31% track them in in-person meetings.

The challenge with tracking your goals is finding a way to connect your goals with your team’s daily work. You’ve taken all of this time to create a SMART goal—keeping it front of mind can help you make sure you achieve it. At Asana, we believe goals should be closely connected to the work they’re, well, connected to. Here’s how you can do that:

1. Share your SMART goals with project stakeholders and team members

At the start of the project, make sure you surface your SMART goals to everyone involved in the work. Your SMART goals should guide your whole team as you work on project deliverables, so you know exactly whether or not you hit your project objectives.

The best way to do that is with a work management tool like Asana. That way, your team has a central source of truth with all information in the same place—from your daily work all the way to your project’s goals. Instead of hiding your goals in docs, decks, and other hard-to-find places, connect them to your daily work so everyone is motivated, focused, and on the same page.

2. Check in on progress regularly

In addition to sharing your SMART goals with your team at the beginning of your project, make sure you periodically measure the progress you’ve made towards your goal. You don’t want to work on the project and then find, at the very end of the work, that you’ve missed your goals. You’ve worked hard to set specific, measurable goals for a reason—you can use them as your north star, and course correct during your project if necessary.

The best way to regularly check in on your SMART goals is to send weekly project status updates . Status updates are a great way for you to highlight the important work your team did, any upcoming milestones, and whether or not you’re on track.

3. Evaluate your success

SMART goals bring clarity to your goal-setting process—so you can gauge exactly whether or not you hit your project goals. If you did, it’s time to celebrate! And even if you didn’t, having such clear goals—and checking in on your goals regularly—can help you best identify what went wrong and where you can do better next time.

Remember, not hitting your goals doesn’t mean your project was a total failure. You may have purposefully set a stretch goal to challenge yourself or your team. Even if you didn’t set a stretch goal, it’s more important to calmly evaluate why you missed your target rather than pretend it didn’t happen. That way, you can learn from your mistakes and bring those learnings with you the next time you set SMART goals.

Set smarter goals

SMART goals can help your team succeed by bringing clarity into the goal-setting and project management processes. When your team has clarity and is moving in the same direction, they’re more likely to be motivated and to know what work to prioritize.

Visualizing and tracking your goals both makes them easier to measure and achieve. In Asana, you can set, track, and report on your SMART goals all in one space. With the ability to connect with everyone on your team and share with stakeholders, you can coordinate everything you need to achieve your most ambitious goals.

SMART goals FAQ

What does the smart goals acronym stand for.

The SMART goals acronym stands for Specific, Measurable, Attainable, Relevant, and Time-bound. George T. Doran popularized this framework, which offers a methodical approach to setting goal-specific objectives. By following the SMART acronym, you're more likely to set specific goals that are both effective and achievable.

What are the 5 SMART goals

The 5 SMART goals refer to the five criteria that any SMART objective should meet. These are:

Specific: Clearly defined objectives that spell out what you aim to achieve.

Measurable: Quantifiable goals that allow you to track your progress.

Attainable: Goals that are challenging yet achievable, ensuring you're not setting yourself up for failure.

Relevant: Objectives that align with your broader aims and values.

Time-bound: Goals that come with a deadline promote effective time management.

How do I write a SMART goal?

To write a SMART goal, begin by defining what you specifically want to accomplish. Next, determine how you'll measure success and ensure that your objective is attainable. Make sure the goal is relevant to your broader life or career ambitions. Finally, add a timeframe to create a sense of urgency. A well-crafted SMART goal might look like this: "I want to increase my LinkedIn network by 200 connections within the next three months."

What are the best SMART goals?

The best SMART goals are those that are closely aligned with your own or your organization's broader aims, serving as stepping stones toward your ultimate goal. They should challenge you while still being achievable. These goals should be easily measurable and promote effective time management, allowing you to allocate resources wisely. For example, if career development is a priority, an excellent SMART goal could be "to complete an advanced course in digital marketing within the next six months."

Related resources

What are objectives and key results (OKRs)?

Fix these common onboarding challenges to boost productivity

How Asana uses work management to optimize resource planning

How Asana uses work management for organizational planning

Human Resources | Tip List

10 SMART Goals Examples for Small Businesses (+ Free Template)

Published January 23, 2023

Published Jan 23, 2023

WRITTEN BY: Rebecca Michael

Utilizing the SMART goals methodology will help your company achieve its strategic objectives. SMART stands for specific, measurable, achievable, relevant, and time-bound goals. This strategy will focus your team members on the most important objectives for your business, which will help you in achieving them efficiently.

We outlined some SMART goals examples you can use to help you create your own and stay focused on what you’re trying to achieve. Practical application is the best way to truly understand how SMART goals are utilized in small business today. These examples show you how you might apply the process for your own business.

1. Create a Marketing Plan for a New Business Within 1 Month

When starting a new business, there are plans within plans to make. Creating the marketing plan for the new company is an important SMART goal.

• Specific: We need to create a marketing plan that has a specific outline we can follow to ensure we covered the most important information.
• Measurable: Each week of the month, we will finalize 25% of the plan’s details to ensure completion within one month.
• Achievable: One month should be plenty of time to do all the market research and company analysis required to create a good marketing plan.
• Relevant: Without a solid plan for marketing, the company is missing a crucial component to success.
• Time-bound: The time limit is one month.

Check out our guides to writing a marketing plan and creating an effective blog content strategy for additional information on SMART marketing goals.

2. Pay Off $10,000 in Business Debt Within 30 Months

Setting financial goals is an important step toward gaining control of your business finances. One SMART goal example may be to pay down the company’s debt, thus making more money available for employee pay increases and other projects.

• Specific: Pay off $10,000.
• Measurable: We can measure progress by monitoring our cash accounts as we go, and track how we are doing month to month.
• Achievable: We will achieve this by spending less on growth-goal related items and will work to encourage vendors to pay on time and in full.
• Relevant: We will highlight development and project opportunities throughout the year that can benefit from increased investment once the debt is paid down.
• Time-bound: Within 30 months, we will achieve our objective.

Did You Know?

SMART goals actually do work. According to a study by Dominican University , 76% of people that recorded their goals, created actionable steps to do and reported on them weekly to another person achieved their goals. This is 33% better than those who didn’t write down their goals.

3. Set Up a Remote Sales Networking System Within 7 Days

This scenario became painfully real to many companies in the early months of 2020. Setting SMART goals for transitioning to remote operations at the beginning of the COVID-19 pandemic was an important part of maintaining an effective sales culture during a very stressful time. This SMART goal example is rooted in a real-world experience that many people faced.

• Specific: Every member of our remote sales team should be connected and operational.
• Measurable: The task is complete when the networking system is operating and our remote workers are able to work.
• Achievable: Although this goal might be ambitious, we can move this to the top of our priority list and temporarily pull in resources from longer-term projects to complete this necessary goal.
• Relevant: Remote work is a good setup even when there’s not a pandemic making it necessary. In 2020, remote networking allowed companies to continue operating. In a post-COVID world, remote networking helps employees be productive and companies achieve results.
• Time-bound: The time limitation for this goal is seven days.

4. Increase New Customer Reviews by 30% Year Over Year

Most companies’ growth these days has to do with the brand awareness your business has in the market. One of your most important goals in brand cultivation is your brand awareness growth throughout the year.

One SMART goal example for this: The number of new customer reviews we get must increase 30% on a year-over-year (YoY) basis.

• Specific: Increase customer reviews by 30%.
• Measurable: We measure our progress through monthly reporting, and it shows if we reach our target or not.
• Achievable: We increased our customer reviews last year by 20%. We believe the 30% target is achievable.
• Relevant: Based on our research to date, an increase in the number of customer reviews corresponds with increased sales in our top growth channels.
• Time-bound: This is a YoY comparison.

5. Ensure All Our Overseas Factory Workers Are Paid a Living Wage Within 3 Months

As consumers become more conscious of where their goods come from, the demand for ethically sourced products increases. If you source your products ethically, you can gain customer loyalty and charge a premium while doing it.

The word “ethical” is vague and can mean many things. Different companies have different standards of ethics that they are able and willing to implement. For example, you might insist that the overseas workers who make your product be paid 25% higher than the average wage for that industry, or that your production lines provide well-paying jobs and valuable job training to women escaping domestic violence. You might also make your manufacturing carbon-neutral by planting trees to offset the carbon emissions produced in creating your products. In this SMART goals example, the specific goal is to vet the working conditions of our overseas factories and ensure that all workers are paid a living wage.

• Specific: We are focused on all our overseas factory workers earning a living wage.
• Measurable: We will request cost of living data from our overseas partners and then evaluate their compliance with our living wage goal or select new partners on a region-by-region basis.
• Achievable: Since we already work with overseas factories, vetting suppliers and choosing new partners based on our updated requirements is an achievable goal.
• Relevant: Many customers base their spending habits on their ethical values. Sourcing our products ethically will help us win loyal customers.
• Time-bound: The goal is to accomplish this within three months.

6. Grow Worldwide Market Share of Our Top-selling Software at Least 10% by the End of the Year

Growing market share is the goal of most organizations, large or small.

• Specific: We know the geographic area, the product line, and the level of growth (10%) we’re looking for.
• Measurable: We will be able to measure our goal by tracking new customers, growth in new markets, and overall growth in current markets.
• Achievable: We grew, overall, by 8% last year and we feel this increased goal is doable.
• Relevant: Growth in market share often results in higher revenue and more customers, among other benefits.
• Time-bound: We will reach our goal by the end of the year.

It’s very important to create and use SMART objectives because they provide a frame of reference for all involved. That way, at the end of the period being measured your team can reassess whether or not it was truly “achievable.”

7. Transition IT Support From Contract to In-house in 6 Months

All companies that use computers have to have IT support. Many companies hire IT support companies to take care of their computer needs. As a company grows, it might become more financially beneficial to create an IT department and handle those needs in-house rather than contracting out to a service, as in this SMART goal example.

• Specific: This goal requires adding a new department to the organization structure and staffing it.
• Measurable: This goal is measurable by the existence or non-existence of an IT department. The number of people who will need to be hired is another measurement that will be determined in a sub-goal of this overarching goal because SMART goals can and usually do have additional goals required to make the plan happen.
• Achievable: This is a reasonable timeline for this goal, and we have the resources and expertise to create this department and hire qualified people.
• Relevant: An in-house IT department will save us time and money and make our employees more productive by decreasing technology-related downtime.
• Time-bound: The timeline for this goal is six months.

8. Plan 5 Customer Education Webinars by the Fourth Quarter

A good idea here may be to plan and execute five customer education webinars by the fourth quarter with 15-plus attendees per event and at least 80% highly satisfied or very satisfied responses regarding content.

• Specific: The goal is to plan five webinars.
• Measurable: We will assess the number of attendees in each webinar and distribute and analyze attendee survey results.
• Achievable: The personnel and system resources are available and the need is active.
• Relevant: These webinars will help generate additional customers and/or our brand will establish expertise in the market.
• Time-bound: We will have this completed by the fourth quarter of the current year.

9. Increase Sales Cold Calls by 10% This Year

In many businesses, cold calls are key to sales. Whether you’re doing business-to-business or direct-to-customer sales, if your business model requires you to reach out, then increasing your cold calls can be the key to setting higher sales goals , as demonstrated in this SMART goals example.

• Specific: We want to make 10% more cold calls this year than last year.
• Measurable: It is easy to compare the number of calls made last year to the number of calls made this year.
• Achievable: We can add incentives to push our team to make more calls. If we need to hire more people or move some part-time employees to full-time, we can do that.
• Relevant: If the conversion rate for our calls remains constant, this will increase our overall sales.
• Time-bound: We have until the end of this year to complete this goal.

10. Increase Website Traffic 25% by December 2023

If your website is successful, you already are aware of your overall conversion rates, both in terms of click-throughs from search engines and social media and in terms of sales generated per click-through. Increasing your website traffic will increase your sales, as long as your sales conversion rate remains relatively constant, in this SMART business goals example.

• Specific: To increase the number of visitors that come to our site by 25%.
• Measurable: Increase our annual visitors from 100,000 to 125,000.
• Achievable: Our inbound marketing team has solid social media and content creation strategies in place. We can hire additional experts as needed to increase our visibility and our website traffic.
• Relevant:  The more traffic we have, the more money we make and the larger our reach.
• Time-bound: We want to complete this goal by December 2023.

According to the Center for Management & Organization Effectiveness, studies show that goal-setting teams enjoy 20%-25% improved performance . In addition, employees with goals are happier at work, less stressed, and more productive.

How SMART Goals Work

Here’s how each letter in a SMART goal acronym helps you focus your efforts to achieve desired results:

S = Specific

The “S” in a SMART goal stands for “Specificity.”

We all know that it helps us to remember to write down what we want to do, using action words. For example, instead of saying, “I want more clients,” you might say, “I’m going to sign up four new clients within this next quarter.” Being specific and using action verbs focuses you on what exactly you, or your team, needs to do. The key questions that you are asking you or your team are the following:

• What’s the objective?
• What needs to be accomplished?
• Who (what team) is responsible for completing or driving this task or project?
• What steps will you or your team take to achieve it?

In the following SMART goals examples, notice how the goals provide information about what exactly you need to do, even though you still need to outline further tasks and sub-goals to flesh out your plan.

M = Measurable

The “M” in a SMART goal helps you clarify and quantify your efforts so you can “Measure” them.

In the SMART goals example of signing up new clients, we can add the additional note that your goal is to increase, by four, the number of new clients. Although establishing a target may seem obvious, many fail to add this important component to their goal framework. In short, your measurements determine whether or not you achieve your goal.

A = Achievable

The “A” in SMART goals represents the goal’s “Achievability” factor.

This step reminds us to check to make sure the goal is within reach; is it practical? Experienced leaders will tell you that people are motivated by goals that stretch them, as long as they’re not unrealistic. Let’s assume, for example, four new clients is an achievable goal, but the timeline suggested is not. Ensure that you are both ambitious as well as practical.

R = Relevant

The “R” in SMART goals addresses the “Relevance” of the goal.

If your overall business plan calls for increasing profitability, instead of sales, perhaps new customers aren’t your primary goal. Instead of focusing on new customers you may need to focus on retention of existing customers and their profitability per sale transaction, price increases, or reducing production costs. Make sure the goal you set makes sense for you. In the following SMART goals examples, notice how Relevant often means “how will this benefit me?”

T = Time-bound

The “T” in SMART goals references the “Time” aspect of your goal.

Setting a time frame around your goals is essential; it not only identifies the end or conclusion of your goal’s duration, but motivates the identified endeavor. Working to achieve four new customers is fine, but if you don’t set a time frame it could diminish the objective overall as it could take much longer to achieve four customers than desired.

(ADD: Infographic template for SMART goals. Fill in the blank format, with the following entry fields: “S: What SPECIFICALLY do I want to do?” “M: How is this MEASURED?” “A: Is this ACHIEVABLE?” “R: How is this RELEVANT to my business?” “T: How much TIME do I have?”)

Do's and Don'ts in Setting SMART Goals

Now that you have seen some SMART goals examples, we want to share with you the “do’s and don’ts” of setting SMART goals. This shortlist has examples of what others have done in the past that have impeded their ability to set successful SMART goals and execute on them thoroughly.

As you can see, following a few simple rules and ensuring that your team follows suit will aid you in setting SMART goals that make sense to everyone on the team.

Additional Tips for Setting SMART Goals

There are strategies for getting your team on board with your SMART goals, which will make you more likely to be successful at implementing your goals. Keep these tips in mind while you’re considering your SMART business goals examples.

• Get your team involved . People are more passionate about goals they help create. Have your team brainstorm ideas, and involve them in the process of narrowing and selecting the goals they want to work on.
• Make a plan of action . There should be specific goals for each step of the way. This is like making mini-SMART goals to help you reach your overall SMART goal.
• Write it down . Every team member needs a copy of the plan, with the big goal and the smaller goals. This helps everyone stay on track.
• Evaluate, evaluate, evaluate . After every project, have everyone evaluate their own performance and the team’s performance as a whole. What was the goal? Did you achieve it? What went well? What went wrong? What could you have done better? What did you learn? What specific actions can you take to improve your performance in the future?
• Reassess the goals as needed . As you work on a project, you might find that you need to change your plan, or even adjust your broader SMART goal. Take time to make sure the plan you have is still in alignment with your overall goals and vision.
• Use a performance management system . It can be hard to keep up with all the elements of goal setting and follow-up, especially in a large organization. A performance management system can help you keep track of everything.

Bottom Line

Not having a goal is like hiking without a map or building a boat without a plan. Making your goals SMART ensures that you not only know what you want to achieve, but how you will get there (as well as a way to measure your progress along the way). We encourage you to read more about using SMART goals as part of your performance management process as well.

About the Author

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Rebecca Michael

Rebecca Michael has more than 15 years of experience in publishing and digital media. She previously served as a Head of Content and Editor-in-Chief for a large digital marketing company specializing in content strategies for small businesses. Rebecca has over 20 years of writing experience in online TV, blogs, and news sites. She is the Director of Content for Fit Small Business and The Close , where she’s developed topic teams of excellence that deliver high-quality content to our readers.

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How to Write a S.M.A.R.T. Project Objective

By Kate Eby | November 22, 2016 (updated February 25, 2023)

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In this article, you'll learn all there is to know about the S.M.A.R.T method, and how to write the most effective goals for your project.

Included on this page, you'll learn what a project objective is , examples of successful project objectives , tips on how to craft a clear, concise objective using the S.M.A.R.T. method , and much more.

What Is a Project Objective?

A project objective states the desired results of a project at its outset, including goals and deliverables. An objective should be specific and measurable, and identify any time, budget, and quality constraints.

Objectives can be used in project planning for business, government, nonprofit organizations, and even for personal use (for example, in resumes to describe the exact position a job-seeker wants). A project may have one objective, many parallel objectives, or several objectives that must be achieved sequentially. To produce the most benefit, objectives must be defined early in the project life cycle , in phase two, the planning phase. 

Benefits of the Well-Written Objective

A well written objective is crucial because it can affect every step of the project life cycle. When you create a specific objective, you give your team a greater chance of achieving the objective because they know precisely what they’re working towards. Clear project objectives also support the current emphasis on total quality management: every member of the team can consider themselves responsible for quality, because the whole team can see the desired outcome from the beginning of the project. 

All types of endeavors can benefit from objectives. As an individual, you may use an objective to target exactly what to plan for. For example, you may know you want to go to graduate school, but finding an objective will help you to understand that you want to obtain a sociology degree at your local community college and to graduate in six years. A small nonprofit group may use objectives to determine that success for a recycling education program is when 40 percent of households in a county request free composting buckets. A construction company might use objectives to keep a building project on schedule and within budget . 

No matter what the project type, templates can make the job easier, from crafting the objective statements to planning the project .

Download Project Goal and Objectives Template

Excel | Word | PDF

Download Project Objectives Worksheet Template

The Taxonomy of Project Definitions

You may encounter several definitions of objectives , such as vision statements and business goals. While these terms are often used interchangeably, we’ve outlined the relationships among them to help you use them correctly:    

Vision Statement -  A statement that expresses the high-level intention of a project (often with lofty or unachievable goals). For example, a school may aim for perfect pupil attendance or a company may strive for 100% customer satisfaction. 

Business Goals - A company creates these to describe the overall outcomes it wants to accomplish in a certain time frame. Business goals are captured in business plans.     

Goals - A high-level, broad, non-specific, and long-term definition of what the group or organization wants to accomplish. Goals are not measurable, and several discrete projects may be needed to achieve a goal. Some people say that project goals do not need to be defined, so long as a project manager understands the business goals. However, project objectives are always needed. In a business, project goals are influenced by business goals. 

Objectives - Influenced by goals, an objective is a low-level description of the specific and measureable outcomes desired from a project. Activities and most likely deliverables will contribute to achieving the objective. The project and its objectives must always contribute to the goal, otherwise the project should not be attempted.          Bottomline: Goals are high-level, general statements about the aims of the project, while objectives are detailed statements about what the project should accomplish. 

Activities - This is what your team will do to achieve the objective. An activity can be a specific action or a process, and many activities will likely be involved to meet objectives. As with everything in project management, the key consideration for activities is that they contribute directly to achieving the objective, and thereby the goal. 

Deliverables - A specific, tangible product or thing, like a report or a software app. One or more deliverables may contribute to achieving an objective, but it is important not to define the objective as a deliverable. In other words, if the objective is written at too low a level, you risk creating the wrong deliverables. Rather, the objective is there to guide you and the team to determine what products or processes are needed. For example, say you have difficulty falling asleep each night. You may decide that your objective is to buy relaxing chamomile tea. Drinking the tea might help, but if your objective had been to ensure at least seven hours of sleep a night by the following month, you might have explored other solutions that would have greater benefits, such as making sure to get an hour of exercise every day.      Requirements - A description of features and functions. Objectives should not include features and functions. 

How to Define S.M.A.R.T. Objectives

SMART objectives are specific, measurable, achievable, realistic, and time-bound. To write SMART goals, consider the key performance indicators (KPIs) that are specific to your business or project. 

Specific: Define your objectives clearly, in detail, leaving no room for misinterpretation. Think of the five w’s (who, what, when, where, and why). 

Measurable: State the measures and performance specifications you’ll use to determine whether you’ve met your objectives.  

Achievable or Attainable: Choose objectives that the team has a reasonable expectation of successfully completing. 

Realistic: Set objectives the project team believes it can achieve. Relevant objectives align with group or company goals.

Time-bound: Include the date or specific period by which you’ll achieve the objectives.

If you’re interested in creating S.M.A.R.T. goals, use our template as a guide. 

Objectives and Indicators In some project management guides, you may also find reference to objectives and indicators. This is a different way of expressing the S.M.A.R.T. criteria. An objective may be stated as, Children in x county shall read better. The indicators would be, 60 percent of children under age 13 read at the appropriate reading level for their age.

Best Practices for Writing Successful Project Objectives

A project objective should be a brief, one-sentence statement that includes actionable, measurable goals. We’ve outlined some best practices for writing a successful project objective below.

Keep in mind that an objective should not specify how something is done, and consider the context and guidelines the organization you’re writing for use.

Here are a few suggestions to help you as you write the statement:

• Write the objective before starting the project.
• Identify all objectives at the beginning.
• An objective cannot be written in isolation. Get support from all levels of the team. If the team doesn’t believe in the objective, they won’t work towards it and stakeholders won’t provide resources. If stakeholders disagree with the objective, work with them until you get a statement you can all stand behind.
• Be brief; it increases the chances of objectives being read and understood.
• Be clear; don’t give a list of options or a range of target numbers. Ask for what you need and what you expect.
• Use plain English, not jargon so everyone can understand your objective.
• Make sure your objectives are things you actually can control. For example, “I will send out 50 letters of interest by next week” describes something you can achieve. “I will book 15 jobs by next week” is not something you can control, because it’s up to someone else to hire you.

Examples of Project Objectives

 Although project management guides and organizations differ on how specific the verbs used in an objective should be, all sources agree that an objective should be detailed to be effective. The following are examples of how not to and how to write an objective.

Poorly Written Objectives

• Personal: Earn more money.
• Personal: Go to university.
• Nonprofit: Help children read better.
• Business: Create a new app.
• Business: Install a new system.

Examples of Well Written Objectives

• Personal: Your goal may be to buy a house, but your objective is to get a condominium for under $250,000 with two bedrooms by August.
• Business: The goal is to build up the company in the near future. The objective is to increase sales of Super Widget by 10 percent by the second quarter of next year. 
• Business: The goal is to make existing customers happier. The objective is to improve customer satisfaction rates by 50 percent by June 30 through training of customer service team.
• Nonprofit: The goal is to restore a native habitat around the retention pond near the Old Road to encourage native bird and animal species to visit and improve water filtration. The objective is to support residential homeowners around the pond to remove and replace non-native plants on one-third of the designated area by December. 
• Objective 1: To locate a kitchen and eating space on a bus route that can serve 30 women by December 15. 
• Objective 2: To recruit volunteers who will staff the kitchen for breakfast and dinner by December 30. 
• Objective 3: To organize a regular donated food supply for breakfasts and dinners from local organizations and restaurants by December 30.

Use Smartsheet to Create and Document Your SMART Goals

Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change. 

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

Take your work to the next level. See how Smartsheet can help.

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SMART Goal Examples

Alyssa Gregory is an entrepreneur, writer, and marketer with 20 years of experience in the business world. She is the founder of the Small Business Bonfire, a community for entrepreneurs, and has authored more than 2,500 articles for The Balance and other popular small business websites.

The Balance/Alison Czinkota

SMART goal setting , which stands for Specific, Measurable, Attainable, Relevant, and Time-Based, is an effective process for setting and achieving your business goals.   Applying the SMART grid to your goals will help you to create more specific, achievable targets for your business, and to measure your progress toward them.

Below are several examples of broad objectives that are reframed as specific, SMART goals. As you review the sample SMART goals, notice how each example outlines several subgoals, or specific actions, that need to take place in order to accomplish the overall goal. SMART criteria can also be applied to each of those smaller goals in the same way as shown here.

Broad Goal Example: I Want to Start a Business

• Specific : I will sell handmade cards through Etsy.com.
• Measurable : I will be ready to take my first Etsy order within four weeks, and I will aim to sell a minimum of five cards per week.
• Attainable : I will get set up on Etsy first. Then I will build an inventory of 30 handmade cards to sell. Finally, I will promote my business and build customer relationships through word of mouth, referrals, and local networking.
• Relevant : Selling handmade cards will allow me to benefit financially from my favorite hobby.
• Time-Based : My Etsy store will be up and running within four weeks, and I will have an inventory of 30 cards to sell within six weeks.  

Within a month, I am going to get set up to sell handmade cards on Etsy, which will allow me to benefit financially from my favorite hobby. Within six weeks, I will have an inventory of 30 handmade cards to sell and aim to sell a minimum of five cards per week, building customer relationships through word of mouth, referrals, and local networking.

Broad Goal Example: I Want to Grow My Business

• Specific : I will acquire three new clients for my consulting business.
• Measurable : I will measure my progress by how many new clients I bring on while maintaining my current client base.
• Attainable : I will ask current clients for referrals, launch a social media marketing campaign and network with local businesses.
• Relevant : Adding additional clients to my business will allow me to grow my business and increase my revenue.
• Time-Based : I will have three new clients within two months.

I will acquire three new clients for my consulting business within two months by asking for referrals, launching a social media marketing campaign, and networking with local businesses. This will allow me to grow my business and increase my revenue.

Broad Goal Example: I Want to Write a Business Book

• Specific : I will write a book about social media that is a minimum of 150 pages.
• Measurable : I will write one chapter per month or three to five pages per week.
• Attainable : I will work on the manuscript first, and once that is completed, I will begin to search for a publisher or explore self-publishing.
• Relevant : Writing a book on social media will help me establish myself as an expert.
• Time-Based : My manuscript will be completed and ready to be published in 10 months.

In order to establish myself as an expert, I will write a 150-page book on social media by writing one chapter per month (or three to five pages per week). The book will be completed in 10 months, and then I will search for a publisher or explore self-publishing.

Broad Goal Example: I Want to Become a Well-Known Expert

• Specific : I will become a well-known expert on the topic of small-business accounting.
• Measurable : I will be successful if I am asked to speak publicly on the topic at least once a month, receive interview requests every week, and write one article per month for a top industry publication.
• Attainable : I will accomplish this by acquiring the services of a PR or publicity firm and launching a publicity campaign.
• Relevant : Establishing myself as a small business accounting expert will reinforce my 20+ years of experience in the field and allow me to reach more small-business owners who need accounting advice.
• Time-Based : I want to be considered a small business accounting expert in two years.

I will acquire the services of a PR or publicity firm and launch a publicity campaign that will help establish me as a well-known expert in small business accounting who is asked to speak publicly on the topic at least once a month, receives interview requests every week, and writes one article per month for a top industry publication. This will reinforce my 20-plus years of experience in the field and allow me to reach more small business owners who need accounting advice.

Indeed.com. " SMART Goals: Definition and Examples ." Accessed May 11, 2020.

Corporate Finance Institute. " SMART Goal ." Accessed May 11, 2020.

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Setting SMART Goals for Your Small Business

With goals that are specific, measurable, achievable, relevant, and timely, you can take the steps needed for long‑term success.

With goals that are specific, measurable, achievable, relevant, and timely, you can take the steps needed for long-term success.

According to the U.S. Small Business Administration , only about half of new small businesses survive for 5 years, and only one-third make it to 10 years. To stand the test of time, it’s important to set goals for your business that are specific, measurable, achievable, relevant, and timely—in other words, goals that are SMART.

Small businesses tend to interact with their audience more directly, and on fewer fronts than corporations. Although you may have fewer resources, small businesses have many advantages if used wisely. Creating SMART goals to connect with your audience can make all the difference.

What are SMART goals?

The SMART acronym stands for goals that are specific, measurable, achievable, relevant, and timely. The SMART goal system is impactful for business marketing strategies, project management and overall growth, because it encourages you to look into your market and evaluate how your business stacks up. It provides a model to identify strengths, track progress and room for improvement.

Here’s a more detailed SMART goals definition:

Having a clear, specific outcome in mind is key to making a SMART goal. Making a specific goal means that you can narrow your focus—whether this is on marketing, data collection, sales, or customer relationship management—and get a concise picture of exactly what you want to achieve and thus, what steps you should take to accomplish this goal.

When you set goals, it’s important to make sure you know what metrics you will use to evaluate whether and when you’ve met your goal.

Measurable goals and objectives can be quantitative, like how many returns or outputs you receive or produce; or they can be qualitative, based on the quality of those same returns or outputs.

It’s important to prioritize achievability when you set business goals. This isn’t to say you shouldn’t dream big, but a goal that you can take feasible steps towards will tell you more about the nature of your business, the way you run it, your customers, and the goal itself, rather than working towards something outside your capacity. By defining achievable goals, you’re also allowing yourself to experiment with what works best for reaching this goal, based on your measurements.

Relevancy, in the case of SMART business goals, refers to the pertinent characteristics of your business. Most businesses want to attract a bigger audience and increase their revenue, of course, but relevant goals help you identify what you will do specifically to grow your business.

If you run an online magazine, for example, a relevant and timebound goal is to increase the number of monthly subscribers by 25% this quarter. Subscribers are relevant to the success of your business, and thus the goal meets SMART criteria.

Having a timeframe for when you want to achieve your goal makes the process of planning and executing clearer and more organized. A deadline can be a powerful motivator, and it will help your team work together towards a clear finish line and better time management. Plus, working towards timely goals can give you insight into a certain time of year or the seasonality of your business, which might inform future goals.

Why are SMART Goals Important?

Why is being SMART important, and where does it factor into your small business plan ? SMART goals enable small business owners to take actionable steps towards improvement, measure outcomes, and ultimately achieve scalable success.

Vague goals (like, “Find more customers”), can leave you at a loss when it comes to implementing changes to your current marketing campaigns or business models. Vague goals can also leave business owners feeling over-extended without a clear focus, or unsatisfied without substantial evidence of achievement.

Actionable, achievable goals that are relevant, timebound, and have measurable outcomes are crucial for surviving the inception years of your new business. They can lead to sustainable growth and innovation throughout the life of your company or your career development.

How to set SMART goals

You can start writing your own SMART goals in a few ways:

• Use the SMART acronym as an outline. Write down a goal, then break down how the goal is specific, measurable, achievable, relevant, and timely. Provide details about your goal for each letter in the acronym. You can use a list format, a flow chart, or an outline—whatever keeps your thoughts organized and helps in reaching this goal.
• Use a past/present/future question model. Ask yourself questions like: What have I already done? What is the current outcome? Where do I want to be at the end of this month/quarter/year? Although this model prompts you to look to the future, make sure to keep the goal timely and focused.
• Use marketing software data. Marketing software can provide a foundation to set SMART goals. By collecting your current campaign reports and analytics all in one place, you can start writing your SMART goals based on the quantitative data you’ve already collected. Remember, the data itself is only a starting point; its usefulness is determined by what you do with it.

Use this SMART goal framework that will help you to define a better action plan with the steps you'll need to take, resources necessary to get there and milestones to track progress along the way. With SMART goals, you're more likely to achieve your goal efficiently and effectively.

SMART goal examples

What is a SMART goal? Let’s imagine a small business with the impressive goal of becoming completely carbon neutral or reaching net zero emissions. The goal is laudable, but how will the company achieve it? One step toward that objective might feature the SMART goal of switching 50% of plastic packaging materials to compostable packaging materials by the end of the quarter.

The goal is actionable and brings the company closer to its overall goal of operating as a carbon-neutral entity. Compostable packaging alone won’t get the company to complete carbon-neutral status. Still, it will help get the company closer to that end goal, and it’s an excellent selling point on the company website and sales literature.

Below we’ve listed a few more examples where we take some common small business goals and make them SMART:

• “Build more customers” vs. “Secure 6 new business accounts before the end of the quarter.” Six is specific, securing new accounts is relevant to the ultimate goal of the business, having a quantitative goal correlates to measurable success, it’s small enough to be achievable, and “end of the quarter” is timely.
• “Make more profits” vs. “Increase revenue 10% each quarter until the end of the fiscal year.” 10% is a specific, measurable amount that’s relevant to the goal of increasing overall profits. It puts “increase revenue” into achievable terms, and using quarters of the fiscal year is a timely measurement.
• “Be more present online” vs. “Increase unique blog views by increasing social media marketing content over the next month.” Unique views are a specific audience metric that is captured by your website or marketing platform, increasing social media marketing is measurable quantitatively, and it’s an achievable, actionable item, while “over the next month” is timely.

SMART business goals are about building focus, deepening relationships with your audience, achieving your goals and improving your strategies as you grow. By using the SMART framework, you can improve your business operations, project management and start achieving the goals that matter most.

You can also write SMART goals for personal use, whether you want to improve your career development or achieve goals outside of your professional life. Using the SMART goal framework can organize the process and provide structure before you begin any projects for your small business.

Start setting SMART goals with Mailchimp

Mailchimp helps your company manage customer relationships , generate leads , and grow your small business with an all-in-one marketing platform for email campaigns, content management, and data analysis. Create and achieve your SMART goals by leveraging marketing tools from Mailchimp.

Frequently asked questions

When should i set smart goals.

SMART goals are best set when the company aims to achieve a particular objective or milestone. By taking advantage of SMART goal setting from the get-go, your company can increase productivity, increase profits, and improve client or employee retention.

What is the value of creating SMART goals?

SMART goals take the vagueness out of company operations and help the organization reach its yearly goals with precision. SMART goals can improve resource allocation, time management, and employee morale.

SMART goals help business owners figure out where their teams are succeeding or when they need additional guidance. Grow your small business using achievable SMART goals that will add up to greater success over time.

What are good SMART goals?

In order to set good SMART goals, you must determine what you hope to achieve in the long run, either as an organization or professional.

Learning how to write SMART goals requires creating goals that meet every letter of the acronym. Below are some SMART goal examples that you can use as inspiration:

• Grow the company Instagram page by gaining 100 followers over the next 6 months.
• Find a qualified graphic design intern by the end of the quarter by creating job listings on at least three unique career sites.
• Strengthen the sales team by ensuring that at least 80% of salespeople in your organization complete an inbound sales training by the end of the quarter.

Related Topics

• Partnerships
• Team Dynamics
• Lead & Manage
• Create Multichannel Campaigns
• Navigate Crisis

Examples of SMART business goals: How to set and reach them

When you can describe a problem, most of the time, you’ve already solved it.

This is more or less the idea behind setting SMART goals for business: it’s a practical rule of how to set goals so that they’re clear to everyone and there’s no way of not understanding where you want to go.

For this, the word SMART was chosen. Because each of its letters corresponds to the initial 5 elements that a SMART goal for businesses should have:

Let’s understand each of these elements and how they help you set growth goals for your company.

In order for you to understand this clearly, let’s start by defining, step by step good examples of SMART goals, so that they have all the elements of the acronym incorporated into your description.

But before, how about taking a look at this SlideShare that gives some more examples of SMART goals for a company and other cases that you can use in your day to day life:

Also see: Use the Ansoff Matrix and Determine Business Growth Strategies

Definition and examples of SMART business objectives

After defining each of the characteristics of SMART goals, we will present some examples to make the concept clearer.

1- Specific

Specific means referring to something unique, and is the opposite of general, broad or vague.

Therefore, a specific goal should detail where you want to arrive, unequivocally.

It goes without saying that your goal is to make a profit, or to sell more, these are general goals, not examples of SMART goals in companies.

Sell ​​what? Where? To whom?

EXAMPLE of SMART goals 1:

An example SMART goal, with respect to the specific feature, could be:

I want to sell more high quality sports products in my 4 stores located in malls to take advantage of the effect of a sports festival that will happen in my city.

Okay, now, yes, that’s specific!

2- Measurable

When we refer to measurable, it’s not only to define a measurement, a number to be achieved, but also that its objective can be ascertained objectively.

For example, if we were to establish the goal to make 75% of the city’s children happy, there would be no way to measure it, this criterion is subjective and impossible to measure.

The correct way would look something like this:

EXAMPLE of SMART goals 2:

Sell ​​35% more high quality sports products, compared to last year, in the 4 stores located in malls to take advantage of the effect of a sports festival that will happen in my city.

3- Attainable

Now we need our SMART company goal to be achievable.

If we were to talk about a 200% increase depending on the circumstances (but most likely) it would be unattainable, making the goal unbelievable, discouraging anyone who had to reach it and turning it into something useless and purposeless.

4- Relevant

There’s nothing more meaningless than setting a goal that won’t give you any practical meaning or that won’t help the company grow.

SMART goals have to be important to the business.

For example, setting a goal to renovate the flooring throughout your network of stores could be necessary, and an important goal for maintenance personnel.

But for your business, this is an operational detail, your goal should always be linked to something that will define the company’s destiny, how to conquer new markets, expand your network of stores, the number of customers, billing etc.

EXAMPLE of SMART goals 3:

Let’s take a new example, more comprehensive for a company and quite relevant:

Increase the market share of our company by 10% by opening 4 new stores in the 3 main malls of the city by the end of the year, taking advantage of the increase in consumption generated by the sports festival that will happen in the city.

5- Temporal

Now we’ve reached the last feature of our SMART goals: a date, a time to reach the goal.

EXAMPLE of SMART goals 4:

In our case, it could be to achieve the 35% increase in sales by the end of the year.

Source: Tools hero

Some examples of SMART goals for a business

Example of smart goals 5:.

E-commerce: increase our base of leads that register on the site by downloading materials by 25% by the end of the year.

EXAMPLE of SMART goals 6:

Clothing store: sell 30% more evening dresses during the month of May, when marriages occur in our region, through allowing 10 installment payments by credit card.

EXAMPLE of SMART goals 7:

Fastfood Network: Open 25 new stores by the end of the year, 10 in our state and 5 in each of the 3 neighboring states.

Some of the most used goals in companies are sales goals, so we selected 3 good examples of SMART goals for companies related to sales:

3 examples of SMART goals to increase sales

Let’s go, 3 examples of measurable sales goals and objectives. For each element of the SMART acronym, let’s put its letter (in parentheses) next to this SMART goal feature:

EXAMPLE of SMART goals 8:

Increase by 20% (M, A, R) by the end of the year (T), the revenue from our e-commerce focused on generating content on special dates (Christmas, Mother’s Day, Valentine’s Day, etc.) in our blog to capture 40% more leads (M, A, S).

EXAMPLE of SMART goals 9:

Bill 10 million (M, A) in the first half (T), with the sale of our newly developed product (R, S), using all marketing materials and actions presented at the convention at the end of last year (S).

EXAMPLE of SMART goals 10:

Conquer 5% more market share (A, S, R) in our main market, the State of XY (S, R), through partnerships with distributors and sales promotions (S). This result must be achieved by the end of the year (T).

The importance of defining examples of SMART goals to increase sales that are specific is to give employees an indication of how they will achieve them, something that will be very important in the goal-setting methodology we are about to follow,  OKR .

Determining goals with the use of OKR

OKR (Objectives & Key Results) is a well-known method of determining business goals used by large companies and became very popular when it was adopted by Google, which obtained excellent results.

OKRs stand for   Objectives and Key Results. The Objectives are where we want to go and the Key Results should indicate how we will know, during the process of the goal, if we are getting there.

OKRs usually refer to a period of 3 months in which Key Results are monitored to see if the company is on track.

In addition, OKRs comply with the following characteristics:

• Goals are ambitious (contrary to SMART objectives) and must be very difficult to achieve
• Key Results must be measurable
• If you reach 70% of OKRs, consider yourself doing OK
• Each OKR must have a maximum of 3 or 4 Key Results

But before we see real OKR cases and examples of SMART goals to increase sales, watch this SlideShare about OKR:

Success CASE: OKR and good examples of SMART objectives

Someone who can tell us about this methodology, is Pedro Renan, CMO from We Do Logos. This is how he uses OKR in his Creative Competition company:

“Here at We Do Logos we’re always objective and pursuing results through great planning and no resource waste. Therefore, the OKR methodology fits like a glove for us, allowing us to change course quickly, if necessary. “

Renan gave us an example of how OKR could work for a business similar to his. One where Digital Marketing is focused on Content, to attract customers, generate leads, opportunities, and convert sales.

“Let’s say that the CMO of this company defines one of its Objectives as to achieve a Cost per Acquisition (CPA) of $25. To know, during the quarter, if you’re getting there, you could stipulate 3 different Key Results: Number of Hits, Number of Leads Generated and Number of Generated Opportunities. That way, if the Hits objective is reached, but the Leads objective is not, it allows you to figure out, in the middle of the process, where the error is. And the same goes for Opportunities or any of the Key Results “

This is the logic behind OKR: identify through Key Results how things are going and redefine actions to achieve Objectives. Did you like our list of good examples of SMART goals for a company?

But you might ask? How can I measure, track, and establish SMART goals for a company with my company processes? See a tool in the video below that allows you to create management panels from business process automation.

So how was it? Did you like it?

Be sure to create your free HEFLO BPM process modeling account. Click here and see how .

5 Comments . Leave new

it’s a nice article!! with the quality of information great job admin

You’re welcome!

Its good to know more about business and how to make it reach in top levels

I am trying to set objectives for a Ports company. Will you be able to help me by giving some examples to start?

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Goals and Objectives for Business Plan with Examples

NOV.05, 2023

Every business needs a clear vision of what it wants to achieve and how it plans to get there. A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and actions to achieve them. A well-written business plan from business plan specialists can help a business attract investors, secure funding, and guide its growth.

Understanding Business Objectives

Business objectives are S pecific, M easurable, A chievable, R elevant, and T ime-bound (SMART) statements that describe what a business wants to accomplish in a given period. They are derived from the overall vision and mission of the business, and they support its strategic direction.

Business plan objectives can be categorized into different types, depending on their purpose and scope. Some common types of business objectives are:

• Financial objectives
• Operational objectives
• Marketing objectives
• Social objectives

For example, a sample of business goals and objectives for a business plan for a bakery could be:

• To increase its annual revenue by 20% in the next year.
• To reduce its production costs by 10% in the next six months.
• To launch a new product line of gluten-free cakes in the next quarter.
• To improve its customer satisfaction rating by 15% in the next month.

The Significance of Business Objectives

Business objectives are important for several reasons. They help to:

• Clarify and direct the company and stakeholders
• Align the company’s efforts and resources to a common goal
• Motivate and inspire employees to perform better
• Measure and evaluate the company’s progress and performance
• Communicate the company’s value and advantage to customers and the market

For example, by setting a revenue objective, a bakery can focus on increasing its sales and marketing efforts, monitor its sales data and customer feedback, motivate its staff to deliver quality products and service, communicate its unique selling points and benefits to its customers, and adjust its pricing and product mix according to market demand.

Advantages of Outlining Business Objectives

Outlining business objectives is a crucial step in creating a business plan. It serves as a roadmap for the company’s growth and development. Outlining business objectives has several advantages, such as:

• Clarifies the company’s vision, direction, scope, and boundaries
• Break down the company’s goals into smaller tasks and milestones
• Assigns roles and responsibilities and delegates tasks
• Establishes standards and criteria for success and performance
• Anticipates risks and challenges and devises contingency plans

For example, by outlining its business objective for increasing the average revenue per customer in its business plan, a bakery can:

• Attract investors with its viable business plan for investors
• Secure funding from banks or others with its realistic financial plan
• Partner with businesses or organizations that complement or enhance its products or services
• Choose the best marketing, pricing, product, staff, location, etc. for its target market and customers

Setting Goals and Objectives for a Business Plan

Setting goals and objectives for a business plan is not a one-time task. It requires careful planning, research, analysis, and evaluation. To set effective goals and objectives for a business plan, one should follow some best practices, such as:

OPTION 1: Use the SMART framework. A SMART goal or objective is clear, quantifiable, realistic, aligned with the company’s mission and vision, and has a deadline. SMART stands for:

• Specific – The goal or objective should be clear, concise, and well-defined.
• Measurable – The goal or objective should be quantifiable or verifiable.
• Achievable – The goal or objective should be realistic and attainable.
• Relevant – The goal or objective should be aligned with the company’s vision, mission, and values.
• Time-bound – The goal or objective should have a deadline or timeframe.

For example, using the SMART criteria, a bakery can refine its business objective for increasing the average revenue per customer as follows:

• Specific – Increase revenue with new products and services from $5 to $5.50.
• Measurable – Track customer revenue monthly with sales reports.
• Achievable – Research the market, develop new products and services, and train staff to upsell and cross-sell.
• Relevant – Improve customer satisfaction and loyalty, profitability and cash flow, and market competitiveness.
• Time-bound – Achieve this objective in six months, from January 1st to June 30th.

OPTION 2: Use the OKR framework. OKR stands for O bjectives and K ey R esults. An OKR is a goal-setting technique that links the company’s objectives with measurable outcomes. An objective is a qualitative statement of what the company wants to achieve. A key result is a quantitative metric that shows how the objective will be achieved.

OPTION 3: Use the SWOT analysis. SWOT stands for S trengths, W eaknesses, O pportunities, and T hreats. A SWOT analysis is a strategic tool that helps the company assess the internal and external factors that affect its goals and objectives.

• Strengths – Internal factors that give the company an advantage over others. 
• Weaknesses – Internal factors that limit the company’s performance or growth. 
• Opportunities – External factors that allow the company to improve or expand. 
• Threats – External factors that pose a risk or challenge to the company.

For example, using these frameworks, a bakery might set the following goals and objectives for its SBA business plan :

Objective – To launch a new product line of gluten-free cakes in the next quarter.

Key Results:

• Research gluten-free cake market demand and preferences by month-end.
• Create and test 10 gluten-free cake recipes by next month-end.
• Make and sell 100 gluten-free cakes weekly online or in-store by quarter-end.

SWOT Analysis:

• Expertise and experience in baking and cake decorating.
• Loyal and satisfied customer base.
• Strong online presence and reputation.

Weaknesses:

• Limited production capacity and equipment.
• High production costs and low-profit margins.
• Lack of knowledge and skills in gluten-free baking.

Opportunities:

• Growing demand and awareness for gluten-free products.
• Competitive advantage and differentiation in the market.
• Potential partnerships and collaborations with health-conscious customers and organizations.
• Increasing competition from other bakeries and gluten-free brands.
• Changing customer tastes and preferences.
• Regulatory and legal issues related to gluten-free labeling and certification.

Examples of Business Goals and Objectives

To illustrate how to write business goals and objectives for a business plan, let’s use a hypothetical example of a bakery business called Sweet Treats. Sweet Treats is a small bakery specializing in custom-made cakes, cupcakes, cookies, and other baked goods for various occasions.

Here are some examples of possible startup business goals and objectives for Sweet Treats:

Earning and Preserving Profitability

Profitability is the ability of a company to generate more revenue than expenses. It indicates the financial health and performance of the company. Profitability is essential for a business to sustain its operations, grow its market share, and reward its stakeholders.

Some possible objectives for earning and preserving profitability for Sweet Treats are:

• To increase the gross profit margin by 5% in the next quarter by reducing the cost of goods sold
• To achieve a net income of $100,000 in the current fiscal year by increasing sales and reducing overhead costs

Ensuring Consistent Cash Flow

Cash flow is the amount of money that flows in and out of a company. A company needs to have enough cash to cover its operating expenses, pay its debts, invest in its growth, and reward its shareholders.

Some possible objectives for ensuring consistent cash flow for Sweet Treats are:

• Increase monthly operating cash inflow by 15% by the end of the year by improving the efficiency and productivity of the business processes
• Increase the cash flow from investing activities by selling or disposing of non-performing or obsolete assets

Creating and Maintaining Efficiency

Efficiency is the ratio of output to input. It measures how well a company uses its resources to produce its products or services. Efficiency can help a business improve its quality, productivity, customer satisfaction, and profitability.

Some possible objectives for creating and maintaining efficiency for Sweet Treats are:

• To reduce the production time by 10% in the next month by implementing lean manufacturing techniques
• To increase the customer service response rate by 20% in the next week by using chatbots or automated systems

Winning and Keeping Clients

Clients are the people or organizations that buy or use the products or services of a company. They are the source of revenue and growth for a company. Therefore, winning and keeping clients is vital to generating steady revenue, increasing customer loyalty, and enhancing word-of-mouth marketing.

Some possible objectives for winning and keeping clients for Sweet Treats are:

• To acquire 100 new clients in the next quarter by launching a referral program or a promotional campaign
• To retain 90% of existing clients in the current year by offering loyalty rewards or satisfaction guarantees

Building a Recognizable Brand

A brand is the name, logo, design, or other features distinguishing a company from its competitors. It represents the identity, reputation, and value proposition of a company. Building a recognizable brand is crucial for attracting and retaining clients and creating a loyal fan base.

Some possible objectives for building a recognizable brand for Sweet Treats are:

• To increase brand awareness by 50% in the next six months by creating and distributing engaging content on social media platforms
• To improve brand image by 30% in the next year by participating in social causes or sponsoring events that align with the company’s values

Expanding and Nurturing an Audience with Marketing

An audience is a group of people interested in or following a company’s products or services. They can be potential or existing clients, fans, influencers, or partners. Expanding and nurturing an audience with marketing is essential for increasing a company’s visibility, reach, and engagement.

Some possible objectives for expanding and nurturing an audience with marketing for Sweet Treats are:

• To grow the email list by 1,000 subscribers in the next month by offering a free ebook or a webinar
• To nurture leads by sending them relevant and valuable information through email newsletters or blog posts

Strategizing for Expansion

Expansion is the process of increasing a company’s size, scope, or scale. It can involve entering new markets, launching new products or services, opening new locations, or forming new alliances. Strategizing for expansion is important for diversifying revenue streams, reaching new audiences, and gaining competitive advantages.

Some possible objectives for strategizing for expansion for Sweet Treats are:

• To launch a new product or service line by developing and testing prototypes
• To open a new branch or franchise by securing funding and hiring staff

Template for Business Objectives

A template for writing business objectives is a format or structure that can be used as a guide or reference for creating your objectives. A template for writing business objectives can help you to ensure that your objectives are SMART, clear, concise, and consistent.

To use this template, fill in the blanks with your information. Here is an example of how you can use this template:

Example of Business Objectives

Our business is a _____________ (type of business) that provides _____________ (products or services) to _____________ (target market). Our vision is to _____________ (vision statement) and our mission is to _____________ (mission statement).

Our long-term business goals and objectives for the next _____________ (time period) are:

S pecific: We want to _____________ (specific goal) by _____________ (specific action).

M easurable: We will measure our progress by _____________ (quantifiable indicator).

A chievable: We have _____________ (resources, capabilities, constraints) that will enable us to achieve this goal.

R elevant: This goal supports our vision and mission by _____________ (benefit or impact).

T ime-bound: We will complete this goal by _____________ (deadline).

Repeat this process for each goal and objective for your business plan.

How to Monitor Your Business Objectives?

After setting goals and objectives for your business plan, you should check them regularly to see if you are achieving them. Monitoring your business objectives can help you to:

• Track your progress and performance
• Identify and overcome any challenges
• Adjust your actions and strategies as needed

Some of the tools and methods that you can use to monitor your business objectives are:

• Dashboards – Show key data and metrics for your objectives with tools like Google Data Studio, Databox, or DashThis.
• Reports – Get detailed information and analysis for your objectives with tools like Google Analytics, Google Search Console, or SEMrush.
• Feedback – Learn from your customers and their needs and expectations with tools like SurveyMonkey, Typeform, or Google Forms.

Strategies for Realizing Business Objectives

To achieve your business objectives, you need more than setting and monitoring them. You need strategies and actions that support them. Strategies are the general methods to reach your objectives. Actions are the specific steps to implement your strategies.

Different objectives require different strategies and actions. Some common types are:

• Marketing strategies
• Operational strategies
• Financial strategies
• Human resource strategies
• Growth strategies

To implement effective strategies and actions, consider these factors:

• Alignment – They should match your vision, mission, values, goals, and objectives
• Feasibility – They should be possible with your capabilities, resources, and constraints
• Suitability – They should fit the context and needs of your business

How OGSCapital Can Help You Achieve Your Business Objectives?

We at OGSCapital can help you with your business plan and related documents. We have over 15 years of experience writing high-quality business plans for various industries and regions. We have a team of business plan experts who can assist you with market research, financial analysis, strategy formulation, and presentation design. We can customize your business plan to suit your needs and objectives, whether you need funding, launching, expanding, or entering a new market. We can also help you with pitch decks, executive summaries, feasibility studies, and grant proposals. Contact us today for a free quote and start working on your business plan.

Frequently Asked Questions

What are the goals and objectives in business.

Goals and objectives in a business plan are the desired outcomes that a company works toward. To describe company goals and objectives for a business plan, start with your mission statement and then identify your strategic and operational objectives. To write company objectives, you must brainstorm, organize, prioritize, assign, track, and review them using the SMART framework and KPIs.

What are the examples of goals and objectives in a business plan?

Examples of goals and objectives in a business plan are: Goal: To increase revenue by 10% each year for the next five years. Objective: To launch a new product line and create a marketing campaign to reach new customers.

What are the 4 main objectives of a business?

The 4 main objectives of a business are economic, social, human, and organic. Economic objectives deal with financial performance, social objectives deal with social responsibility, human objectives deal with employee welfare, and organic objectives deal with business growth and development.

What are goals and objectives examples?

Setting goals and objectives for a business plan describes what a business or a team wants to achieve and how they will do it. For example: Goal: To provide excellent customer service. Objective: To increase customer satisfaction scores by 20% by the end of the quarter. 

At OGSCapital, our business planning services offer expert guidance and support to create a realistic and actionable plan that aligns with your vision and mission. Get in touch to discuss further!

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Harnessing the Power of SMART Objectives for Business Growth

• Written by: Rinaily Bonifacio
• Last updated: 14 March 2024

In this article, we'll delve into what SMART objectives are, their importance, and how they can propel your business forward.

Table of contents

What is meant by SMART business objectives?

Specific (s) - clearly define your objective, measurable (m) - establish metrics for evaluation., achievable (a) - setting realistic goals, relevant (r) - align objectives with business priorities., time-bound (t) - setting deadlines for objectives, how can smart objectives be used to manage different business departments.

SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound . A SMART objective/SMART goal ensures that your goals are well-defined, quantifiable, realistic, aligned with your business priorities, and have a clear deadline. 

In essence, SMART objectives provide a roadmap for success by guiding your actions to achieve goals and providing a benchmark for measuring progress.

Let's break it down!

Specificity is crucial for effective goal-setting as it provides clarity and direction. When objectives are vague or general, measuring progress and determining the necessary steps to achieve them becomes challenging. By setting a specific goal or objectives, you can clearly define what needs to be accomplished, increasing the likelihood of success.

Here are examples that illustrate the difference between vague objectives and specific objectives:

Vague objective: "Improve customer loyalty and satisfaction."

Specific objective: "Increase customer satisfaction ratings by 10% within the next quarter through improved response time and personalized support."

Vague objective: "Enhance employee engagement ."

Specific objective: "Implement a monthly recognition program, increase employee participation in training programs by 20%, and conduct quarterly satisfaction surveys to improve overall employee engagement."

Tips for crafting specific objectives

Use concrete and measurable language:  Clearly articulate what you want to achieve and provide a way to measure progress.

Break down larger goals into smaller, actionable steps:  Divide your objectives into manageable tasks that can be accomplished within a specific timeframe.

Ensure alignment with overall goals:  Make sure your objectives support and align with the broader mission and vision of your organization.

Include deadlines or timeframes:  Specify when you expect to achieve your objectives to create a sense of urgency and promote accountability.

Be realistic:  While objectives should be challenging, they should also be attainable within the given resources and constraints.

Measurable goals are essential for tracking progress and determining the effectiveness of your efforts. By establishing objective metrics, you can quantitatively evaluate your performance and make informed decisions.

To determine relevant metrics for your objectives, consider the following:

Identify key indicators:  Determine the key performance indicators (KPIs) that align with your objectives. These can be metrics like revenue, customer satisfaction scores, conversion rates, or employee turnover .

Set benchmarks:  Establish baseline measurements to compare your progress against. This will enable you to gauge improvement and identify areas that require further attention.

Use SMART criteria:  Ensure your metrics are Specific, Measurable, Achievable, Relevant, and Time-bound. This framework will help you define metrics that are meaningful and actionable.

Seek input from stakeholders:  Collaborate with relevant team members, departments, or stakeholders to gather insights and identify the most relevant metrics for evaluation.

Tools and techniques for measuring progress:

Data analytics:  Utilize software and tools that provide data analysis capabilities to track and monitor key metrics. This can include tools like Google Analytics for website performance or customer relationship management (CRM) software for tracking sales metrics.

Surveys and feedback:  Collect feedback from customers, employees, or other relevant stakeholders through surveys, interviews, or focus groups. This qualitative data can complement quantitative metrics and provide valuable insights.

Progress reports:  Regularly generate reports that summarize key metrics and progress towards objectives. Visual representations such as charts or graphs can aid in understanding trends and patterns.

Performance dashboards:  Create customized dashboards that display real-time data on relevant metrics. This allows for quick and easy monitoring of progress and facilitates data-driven decision-making.

Setting achievable goals has a significant impact on motivation and productivity . When objectives are overly ambitious or unrealistic, individuals and teams may become demoralized or overwhelmed, leading to decreased performance . 

By breaking down ambitious goals into smaller, achievable milestones, you can maintain a sense of progress and keep your motivation high.

Here are strategies for breaking down ambitious goals into smaller, achievable milestones:

Divide and conquer: 

Break your larger objective into smaller, more manageable tasks or sub-goals. This allows you to focus on specific actions and makes the overall goal less intimidating.

Prioritize tasks: 

Determine the order in which tasks should be completed based on their importance and dependencies. Prioritization helps in allocating resources effectively and staying on track.

Set deadlines:

Establish deadlines for each milestone to create a sense of urgency and accountability . Breaking down goals into smaller time-bound objectives helps maintain momentum and provides a clear timeline for progress.

Celebrate milestones: 

Recognize and celebrate the achievement of milestones along the way. This fosters a sense of accomplishment, boosts employee morale , and provides motivation for continuing towards the larger goal.

Seek support and resources: 

Identify any additional support, resources, or skills required to achieve each milestone. This could involve allocating the budget, assigning specific team members, or acquiring necessary tools.

Remember, while it's important to challenge yourself and set ambitious goals, ensuring they are realistically attainable helps maintain motivation and increases the chances of success.

Employee scheduling and Time-tracking software!

• Easy Employee scheduling
• Clear time-tracking
• Simple absence management

Aligning objectives with the overall goals and business strategy is of utmost importance to ensure that efforts contribute to the organization's success. Objectives that are relevant to the business's priorities and core values provide a clear direction for employees and teams, fostering alignment and cohesion.

Here are steps for ensuring that objectives contribute to the organization's success:

Step 1. Understand the business strategy: 

Familiarize yourself with the organization's strategic objectives and long-term goals. This understanding will help you align your objectives with the broader vision and mission.

Step 2. Identify key focus areas: 

Determine the areas within the business that require the most attention and align your objectives accordingly. Consider factors such as market trends, customer needs, or internal challenges.

Step 3. Conduct a SWOT analysis: 

Assess the organization's strengths, weaknesses, opportunities, and threats. This analysis will provide insights into areas where your objectives can have the most impact and address critical gaps.

Step 4. Engage stakeholders: 

Collaborate with key stakeholders, including senior management, department heads, employees and team members. Involve them in the goal-setting process to ensure that objectives are relevant and aligned with their respective roles and responsibilities.

Step 5. Regularly review and adapt: 

Continuously evaluate the relevance of your objectives in light of changing business conditions. Regularly review progress and make necessary adjustments to ensure continued alignment with evolving priorities.

By aligning objectives with the business strategy, you ensure that your efforts contribute directly to the organization's overall success and help prioritize the most impactful initiatives.

Time constraints play a crucial role in enhancing focus and accountability. Setting a time limit for objectives provides a sense of urgency and helps individuals and teams manage their time effectively. 

By establishing clear timelines, you can prevent procrastination and ensure timely progress towards your goals.

Here are techniques for managing time effectively and avoiding procrastination:

Use the SMART framework: 

Set specific deadlines that are time-bound within the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound). This ensures that your objectives have clear and realistic time frame constraints.

Break objectives into smaller tasks: 

Divide your objectives into smaller, actionable tasks with their respective deadlines. This allows you to track progress more effectively and reduces the likelihood of feeling overwhelmed.

Identify the most critical tasks and allocate time accordingly. Prioritization ensures that you focus on the most important activities, especially when faced with multiple deadlines.

Time management techniques: 

Utilize proven time management techniques such as the Pomodoro Technique (working in focused bursts with scheduled breaks), Eisenhower Matrix (prioritizing tasks based on urgency and importance), or time blocking (allocating specific time slots for different activities).

Minimize distractions: 

Create an environment that minimizes distractions and interruptions. Turn off notifications, close irrelevant tabs or applications, and establish clear boundaries to maintain focus during dedicated work periods.

Regular progress tracking: 

Continuously monitor your progress towards deadlines and make adjustments as needed. Regularly reviewing your performance helps identify areas where you may be falling behind and allows for course correction.

By effectively managing your time and adhering to deadlines, you enhance your ability to stay focused, maintain accountability, and accomplish your objectives in a timely manner.

SMART objectives/SMART goals can be effectively used to manage different business departments by providing a structured framework for goal-setting and performance management. Let's explore how SMART objectives can be applied to specific departments within an organization.

In the finance department, SMART objectives help guide financial planning, budgeting, and overall financial management. Here's how SMART objectives can be used in finance:

Specific:  Clearly define financial objectives, such as reducing operational costs, improving cash flow, or increasing profitability within a specific timeframe.

Measurable:  Establish metrics to track financial performance, such as revenue growth, return on investment (ROI), or expense-to-revenue ratios. These metrics enable the finance department to evaluate progress and make data-driven decisions.

Achievable:  Set realistic financial targets that align with the organization's overall financial goals. This could involve developing achievable budgets, implementing cost-saving initiatives, or improving financial processes.

Relevant:  Ensure financial objectives are aligned with the department's and organization's priorities. For example, if the organization aims to expand globally , the finance department's objectives may include securing funding for international expansion or managing currency exchange risks.

Time-bound:  Set deadlines for financial objectives to create a sense of urgency and accountability. This could involve quarterly or annual targets for revenue generation, cost reduction, or debt repayment.

In the operations department, SMART goals are instrumental in enhancing efficiency, optimizing processes, and improving overall productivity. Here's how SMART objectives can be applied to operations:

Specific:  Define operational objectives that address specific areas for improvement, such as streamlining production processes, reducing lead times, or increasing quality standards.

Measurable:  Identify key performance indicators (KPIs) that reflect operational efficiencies, such as cycle time, defect rates, or inventory turnover. Measuring these metrics provides insights into performance and areas that require attention.

Achievable:  Set realistic targets that take into account available resources, technology, and operational constraints. This could involve implementing lean manufacturing principles, optimizing supply chain logistics, or improving equipment utilization.

Relevant:  Ensure operational objectives are aligned with the organization's overall strategic goals. For example, if the organization aims to deliver exceptional customer service, operational objectives may focus on reducing customer response times or improving order fulfilment accuracy.

Time-bound:  Establish deadlines for achieving operational objectives to maintain focus and prioritize initiatives. This could involve setting milestones for process improvements, implementing new technologies, or launching efficiency initiatives within specific timeframes.

Human Resources

In the human resources department , SMART business goals are valuable for talent management , employee development, and fostering a positive work culture . Here's how SMART objectives can be utilized in human resources:

Specific:  Define HR objectives that target specific areas, such as talent acquisition, employee engagement, performance management, or diversity and inclusion initiatives .

Measurable:  Establish metrics for an effective performance management system, such as employee turnover rates, training and development participation rates, or employee satisfaction scores. Measuring these metrics helps HR assess progress and identify areas for improvement.

Achievable:  Set realistic HR goals that consider available resources, organizational needs, and legal requirements. This could involve developing effective recruitment strategies, implementing performance appraisal systems, or creating employee development programs.

Relevant:  Align HR objectives with the organization's overall people strategy and culture. For example, if the organization prioritizes innovation, HR objectives may focus on fostering a culture of creativity and implementing initiatives that encourage knowledge-sharing and collaboration.

Time-bound:  Set deadlines for HR objectives to ensure timely implementation and progress. This could involve establishing recruitment timelines, conducting performance reviews within specific periods, or implementing employee recognition programs within defined timeframes.

In the marketing department, SMART objectives are crucial for driving brand awareness, generating leads, and achieving marketing goals. Here's how SMART objectives can be applied to a marketing plan:

Specific:  Clearly define marketing objectives that align with the overall marketing strategy, such as increasing website traffic, expanding social media presence, or launching a new product campaign. Example of a specific marketing goal for the sales team: increase sales by 15%.

Measurable:  Establish marketing metrics to assess performance, such as conversion rates, customer acquisition costs, or brand sentiment scores. Measuring these metrics enables the marketing department to track progress and optimize marketing efforts.

Achievable:  Set realistic marketing targets based on market analysis, customer insights, and available marketing resources. This could involve developing targeted marketing campaigns, optimizing digital advertising strategies, or improving lead-generation tactics.

Relevant:  Ensure marketing objectives are aligned with the organization's overall business goals and target audience. For example, if the organization aims to expand into new markets, marketing objectives may focus on market penetration and brand positioning in those specific markets.

Time-bound:  Establish deadlines for marketing objectives to create a sense of urgency and maintain focus. This could involve setting launch dates for marketing campaigns, implementing marketing automation processes within specific timeframes, or achieving specific sales targets by a certain deadline.

By applying SMART objectives to different business departments, organizations can enhance performance, improve efficiency, and align efforts with overall strategic goals.

SMART business objectives are essential for effective goal-setting and performance management.

By being Specific, Measurable, Achievable, Relevant, and Time-bound, SMART objectives provide clarity, focus, and accountability. 

They guide different departments in aligning their efforts with overall business strategies, driving efficiency, productivity, and success.

With SMART objectives, organizations can navigate challenges, seize opportunities, and achieve their goals purposefully and precisely.

Written by:

Rinaily Bonifacio

Rinaily is a renowned expert in the field of human resources with years of industry experience. With a passion for writing high-quality HR content, Rinaily brings a unique perspective to the challenges and opportunities of the modern workplace. As an experienced HR professional and content writer, She has contributed to leading publications in the field of HR.

Please note that the information on our website is intended for general informational purposes and not as binding advice. The information on our website cannot be considered a substitute for legal and binding advice for any specific situation. While we strive to provide up-to-date and accurate information, we do not guarantee the accuracy, completeness and timeliness of the information on our website for any purpose. We are not liable for any damage or loss arising from the use of the information on our website.

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21 SMART Goals Examples for Your Small Business Development

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Starting a business isn’t easy, and running it is even more challenging. New entrepreneurs often feel fear and a lack of motivation, not knowing how to act. Even experienced business owners may be hesitant about their business development. Some may say, “if it works, don’t fix it,” but this isn’t a universal rule.

That’s why SMART goals for business development are crucial for any entrepreneur. This guide will explain how to set goals that work and provide you with seven examples.

Table of Contents

What Is a SMART Goal?

It's crucial to understand SMART goals before you can set your own goals to help with your small business development.

The easy way to remember the core characteristics of a SMART goal is to familiarize yourself with the acronym: Specific, Measurable, Achievable, Relevant, and Time-bound. If your goals fit the SMART goal framework, there is little to no chance of failure. So now, let’s take a closer look at the criteria of a SMART goal.

Your goal should be definitive, answering a specific question and setting a specific target. That’s necessary to know exactly how the goal can be achieved and when it has been met. Strive to narrow down your goals as much as possible. Being excited isn’t enough .

Your goals should have some sort of metric to help you track your progress. If your goals truly meet this criterion, you should be able to answer questions starting with “How much?” “How many?” or “How long?” The ability to track your progress also motivates you to achieve further goals.

Set reasonable goals with reasonable deadlines. Consider any additional steps and changes in circumstance that may affect your progress and evaluate your abilities fairly. Breaking down large goals into smaller, more achievable goals helps you stay motivated and fight procrastination. Setting unachievable goals only leads to frustration.

Your goals should help you achieve your long-term plans. If you didn’t come anywhere closer to your main goal after completing your smaller goal, you might have wasted time and effort.

Your goals have a specific deadline that keeps you focused and motivated. Knowing you only have a limited amount of time to complete your tasks is a great push forward. Conversely, goals without deadlines often lead to procrastination.

Only with all these criteria combined do goals become SMART. However, if even one element is neglected, you may have trouble completing your goals. For example, let’s say you’ve set a goal of building a website for your small business.

This goal aligns with your long-term objective, is both achievable and measurable. However, it isn’t specific enough, nor is it time-bound. To make this goal work, you should specify the website functionality, purpose, and deadline.

The SMART framework works not solely in a business goal setting. It can be applied to any life situation, be it work, hobby, self-improvement , or even finding your life purpose . Make sure to check out our detailed guide on the SMART goal framework if you’d like to learn more.

Why Are SMART Goals Important for Small Business Development?

One of the most common reasons small businesses fail is the lack of organization and ambiguity in objectives. However, running a business involves more than just organizational tasks, such as managing resources and employees or dealing with logistics.

For a business to succeed, it should continuously improve – not necessarily by expanding into a larger business, but by maintaining or elevating product or service quality and increasing customer retention.

And if you’re only planning to start a business, you will encounter even more challenges. The top reasons beginning entrepreneurs fail are lack of motivation, procrastination, and fear of starting something new.

In the case of an existing small business, SMART goals are necessary to create a comprehensive business development strategy. For example, you may have a general aim but not know how to achieve it.

By breaking your main objective into SMART goals, you create a path to the next level. Most importantly, your SMART goals for business development should be relevant and specific.

In the case of a beginning small business, SMART goals are even more helpful. Achievable tasks eliminate the fear of starting something new. The broader your goals are, the less achievable they seem.

Time-bound and measurable goals ensure that you don’t waste time instead of moving towards your dream. When you start seeing your smaller SMART goals completed, you’ll receive a boost in motivation that will help you do more and achieve your primary objective even faster.

Now that you know why you need to set SMART goals for business development, let’s look at some examples of such goals:

21 SMART Goals Examples for Small Business Development

1. improve employee efficiency.

“Over the next four weeks, I will improve my employee workflow efficiency by evaluating which tasks they’re best at performing and assigning them accordingly. I will measure this every day based on the time it takes to complete a task and the quality of work, changing the tasks every three days.”

S : This statement identifies how exactly you’re planning to improve the workflow efficiency of your employees. Furthermore, it describes how you are going to define which tasks you’re best at performing.

M : The time required for an employee to complete a task is a specific, measurable value. Although the quality of work of one particular employee can’t always be measured objectively, you can compare the quality of work of different employees for justified conclusions.

A : This is an achievable goal, as you can evaluate your employee work quality, measure the time it takes to complete a task, and draw conclusions based on this information.

R : This goal is relevant to any business owner wishing to maximize profits and create a better working environment for their employees by giving them jobs they like and can do well.

T : This statement sets a specific period during which you will closely monitor your employee work. It also defines how often you will evaluate the results.

2. Improve Working Environment

“Over the next six weeks, I will improve the working environment for my employees by collecting anonymous feedback from each individual per week.”

S : This statement specifies how you’re planning to make your team members’ lives at work better – by collecting feedback to consider their wants and needs.

M : Employee feedback serves as an excellent basis for drawing conclusions and setting new goals. Receiving input from each employee each week is a simple metric.

A : This is an achievable goal, taking just a little time collecting and evaluating feedback each week.

R : This goal is relevant to any business owner, as happy employees tend to do their job better and are less likely to leave.

T : This goal will be met in six weeks.

3. Improve Time Management

“Over the next month, I will improve my time management. I will do this by creating a schedule every day and marking tasks I have and haven’t completed and the time I started and finished doing them. I will also reduce the time I spend on my phone and measure it using a dedicated mobile app.”

S : This statement is specific. It defines how exactly you’re going to improve your time management – by creating a daily schedule and reducing the time spent on your phone.

M : The marks on your schedule are a good measure for evaluating and improving your time management. A dedicated mobile app provides insights into the time you’ve spent on your phone.

A : This is an achievable goal, taking just a little time to plan and track progress through the day.

R : Time management is crucial for business success. It helps to improve your overall workflow efficiency, which is beneficial for any business owner and aligns with your main objective.

T : This goal should be accomplished in one month.

4. Improve E-Commerce Website

“Over the next six weeks, I will improve my e-commerce website’s user experience. I will do this by implementing A/B testing and comparing how long visitors remain on the site and how many purchases they make on each site version.”

S : This statement specifies how you’re going to improve your website’s user experience – by implementing A/B testing.

M : The time spent and purchases made on each version of your site are a reasonable metric that helps to determine which site version works better.

A : This is an achievable goal if you have the time and resources to implement A/B testing and can evaluate the results afterward.

R : This goal is relevant for any online business owner, as site design and navigation play a crucial role in e-commerce profits.

T : This goal should be achieved within six weeks.

5. Launch Business Website

“I will launch my business website by the end of November. I will hire a skilled website developer, SEO content creator, and web designer to achieve this goal. I will clearly communicate my vision and goals to them and keep in touch throughout the development process.”

S : This statement specifies what you need to do to launch your website – not only hire professionals but also communicate with them.

M : A completed, functioning website is your measurement.

A : This is an achievable goal, as it simply requires hiring three employees and communicating with them.

R : This is a relevant goal for a beginning entrepreneur to build a business online or start a web business portfolio.

T : This goal should be met by the end of November.

6. Improve Customer Service and Product Quality

“I will improve my customer service and product quality by collecting customer feedback on my brand’s social media and my website over the next 12 weeks. I will pay attention to negative feedback to define which sides of my business require more work.”

S : This statement specifies how you will improve your customer service and product quality – by collecting customer feedback and addressing negative comments.

M : Customer reviews are your measurement. You can track how customer feedback regarding specific points changes throughout the 12 weeks.

A : This is an achievable goal, requiring only that you analyze feedback on your company’s social media and website.

R : This is a relevant goal for any small business owner. Excellent customer experience and product quality ensure better customer retention and, consequently, higher profits.

T : This goal will be accomplished within the next 12 weeks.

7. Attract More Customers

“Over the next four weeks, I will attract more customers by promoting my posts on social media. After that, I will measure the results based on the follower and order number.”

S : This statement specifies that you will reach new potential customers by promoting your social media posts.

M : The number of new followers and change in the number of orders is your measurement.

A : This goal can be achieved by regularly devoting some time to promoting social media posts.

R : This goal is relevant to any small business owner wishing to reach new audiences and expand their business.

T : This goal will be completed within four weeks.

8. Reduce Business Expenses

“In order to reduce business expenses, I need to stop outsourcing so much. With this in mind, within the next two months, I will have one of the current employees trained in doing payroll and I will hire one part-time employee to take care of cleaning and maintenance. ” “ In this way, I can eliminate the outside payroll services and cleaning companies. I estimate that this alone will save several thousand dollars within the year.”

S: This is very specific. It lists what will be done, how it will be achieved, and the timeframe of the action. 

M: This goal is measurable. You can know if you stopped some services and hired a person, as well as trained another person. For the amount of money saved, you only need to figure out the cost involved in paying the new employee and training the current one and subtracting that amount from the amount you would normally have paid for the other two services during a year.

A : This is an attainable goal that should be easily put into place.

R: This is relevant to cutting expenses. In-house employees often cost less than a specialized service and these are two positions that lend themselves well to in-house employees.

T: This goal is time-bound because you state you will do this within two months.

9. Become More Eco-Friendly

“To start becoming a business that is more aware of our impact on the environment, all paper will now be placed in a bin to be shredded and used as packing material. ” “ This will begin immediately and is just the first step as I research more options to make us more eco-friendly by the end of the year.”

S : While future actions aren't specified here, the act of having a required bin for papers to be shredded and used as packing material is definitely specific.

M: Measuring the impact on the environment isn't measurable, but this goal is in that you have visual evidence of it being done. 

A: This goal is attainable as long as each employee is aware of what needs to be done and cooperates. You might need to find a way to ensure employee cooperation.

R : Recycling paper and reducing the use of such items as Styrofoam or plastic for shipping is a great way to save on adding to environmental distress and help become eco-friendly.

T: Starting immediately is most definitely a time-bound element in regard to this goal.

10. Improve Teamwork among my Employees

“To foster employee teamwork, I will schedule monthly team-building seminars. These will include activities that allow employees to fully get to know each other and realize how success depends upon working together. ” “ Two of the activities will include an escape room and also a weekend camping trip, where each employee will be responsible for one portion of the trip – such as gathering firewood or preparing food.”

S: This is specific. The only way to make it more specific would be to give a precise month that these activities would be starting and an estimated time at least for when the camping trip would take place.

M: The measurement is built in by keeping track of each meeting or event. Keeping track of attendance will help measure the success of the meetings, and see if there is a correlation between the meetings and increased productivity can also be noted.

A: Scheduling these meetings and events is perfectly attainable. With a bit of planning and research, acceptable activities can be put into place.

R: Studies have shown that a spirit of teamwork often creates a better work atmosphere than one of severe competition. Happy employees who care about each other often care more for the company and will give their best.

T: Stating that there will be a meeting or activity every month makes this a time goal, but it could be made more so by stating when these activities will start.

11. Add a New Service or Product

“I need to expand the services I offer customers. Instead of being a simple dog groomer, I will utilize warehouse space that is currently sitting empty to design a pet daycare center for dogs. This will be ready to open in four months and I will work on getting the word out now to help garner interest.”

S: This is very specific. You state what you will do and how you will go about doing it. You also state when you plan on having the goal met.

M: This goal is measurable in that you can make a list of activities that need to be completed in order to convert the warehouse and create an acceptable place for a daycare. Each step you can check off measures a step closer to the completion of the goal.

A: With the proper planning of sub-goals, this main goal is completely attainable.

R : Adding a doggie daycare to your grooming business is definitely relevant to both adding additional services and growing your business.

T: You have given yourself a time-bound goal by stating that it will be completed in four months.

12. Promote a Deeper Community Connection

“I want to start making connections with the community so they think of me in positive terms. To this end, I will host a summer block party in August. It will include live music, free hot dogs and drinks, a free drawing for prizes, and activities for the kids. ”

S: This is a very specific goal. It lists exactly what you will do and what it includes. It also gives a general time period in which you will do this.

M: The goal itself is measurable. You will know if you actually hold the event and you can even get a good estimate of how well attendance turns out. You won't be able to measure its effectiveness in gaining a deeper community connection for a time, however.

A : With hard work and planning, this is an entirely achievable goal.

R: Holding an event like this is relevant to connecting with the community. It is a way to make people feel like you care about them and it gets you noticed.

T: Setting aside time in August makes this a time-bound goal.

13. Open Another Branch

“It is time to start giving easier access to customers who may not be familiar with this side of town. One year from now, I will open a second location of my business across town that offers the same products and services with less travel time for customers.”

S: This goal states a specific thing you want to do and even mentions why, which gives you incentive. Adding in when you want to open the branch and the general geographical area makes it even more specific.

M: This is measurable. You will know when you actually open the branch. In addition, the steps needed to accomplish this will be the measurement of how much progress you are making.

A: This is attainable as long as you have the funds available to make it happen.

R: Opening a second location is definitely relevant to expanding your business as it allows you to potentially double your sales.

T: You have made this time-bound by giving yourself a one year deadline. 

14. Increase Website Traffic

“Over the course of the next 12 months, I will improve the amount of website traffic by 25%. I will do this by using content marketing and SEO optimization. I will outsource content creation using a team of writers familiar with SEO to bring in fresh ideas. I will measure this quarterly using website analytics tools to ensure we are on track and trending upward in visits to our website.”

S: This statement shows your intention to increase website traffic by 25% through SEO optimization and content marketing efforts.

M: The progress you make towards the goal will be measured using website analytics tools.

A: The goal can be attained because, in your efforts to succeed at increasing traffic to your website, it is well-known that SEO optimization and content marketing efforts have been proven to increase website traffic to other sites.

R: The goal is relevant because a 25% increase in website traffic is a reasonable target for your timeframe of a year with intentional marketing efforts.

T: The goal you’ve stated is time-bound because it has a specific deadline for the end of a 12-month period.

15. Boost Sales

“Within the next quarter, I will improve sales by 15%. In order to accomplish this, I will offer exclusive promotions to repeat customers, tracking purchases with in-house software applications. I will also implement targeted email and direct mail marketing campaigns.”

S:  To accomplish your goal of boosting sales, you’ve set a specific goal to reach 15% to be accomplished in the next quarter.

M: The progress towards the goal can be measured using past and current sales figures.

A: Your goal is attainable because offering exclusive promotions to repeat customers and implementing targeted email and direct marketing campaigns have been proven to increase sales.

R: The goal you’ve set is relevant to your business because a 15% increase in sales is a realistic and reasonable target for your quarterly timeframe and the efforts you’ve set forth.

T: The goal is time-bound because it has a specific deadline of the next quarter for you to assess your progress.

16. Reduce Overhead Costs

“Over the next six months, I will reduce overhead costs by up to 10%. I will do this by analyzing current and projected expenses for my business. I also plan to negotiate better deals with my current suppliers. For instance, I will look at market values and set prices for goods and services accordingly.”

S:   To reach your goal of reducing overhead costs by 10% in the next six months, you’ve created specific and realistic parameters.

M: The progress you’ll make towards the goal can be measured using your financial statements and your budget reports.

A: The goal can be attained due to analyzing expenses and negotiating better deals with suppliers can reduce overhead costs.

R: The goal is relevant because a 10% reduction in overhead costs is a reasonable target for six months, plus the parameters you’ve set.

T: Your goal is time-bound because it has a specific deadline of the next six months.

17. Release a New Product Line

“I will take steps within the company to launch a new product line by the end of a 12-month period. With the release of this new product line, the company will realize a 20% increase in revenue.”

S:  You’ve set your expectations of launching a new product line specifically by the end of the year. Plus, you’re set to achieve a 20% increase in revenue within the first six months of its release.

M: Your progress towards this goal can be measured using sales figures and revenue reporting.

A: The goal is attainable because launching a new product line and achieving a 20% increase in revenue within six months is achievable if the product is well-received and marketed effectively, which is what you’ve planned to do.

R: The goal is relevant and realistic because a 20% increase in revenue is doable for a successful new product line within the time given.

T: Your goal is time-bound because it has a specific deadline of the end of twelve months of the product launch.

18. Improve Customer Satisfaction Ratings

“I plan to improve customer satisfaction ratings by up to 90% by the end of the next quarter. I will do this by taking action on customer feedback survey information. I will also address common customer complaints in a timely manner using appropriate language and offering appropriate solutions.”

S:  You’ve specified how you’ll improve customer satisfaction ratings to 90% by the end of the following quarter.

M: The progress you’ll make towards your goal will be measured using customer satisfaction surveys.

A: The goal is attainable because you’ll be using customer feedback surveys and addressing common complaints that can quickly improve customer satisfaction.

R: Your goal is realistic because setting a 90% customer satisfaction rate should be achievable with your use of effective customer service and complaint resolution.

T: The goal is definitely time-bound as it has a specific deadline of the end of the next quarter.

19. Increase Our Social Media Following

“By the end of the next quarter, I plan to increase followers for our social media platforms by 20%. I will accomplish this with targeted advertising campaigns. I will also employ the use of user-generated content that will appeal to our target audience.”

S: You’ll use social media content and ad campaigns to specifically increase your following by 20%. You can do this using targeted ad campaigns and user-generated content that you can efficiently hire on a contract basis.

M:  Your efforts will help the company to realize a 20% increase in its social media following.

A: The goal can be attained when you use targeted ad campaigns and user-generated content to reach potential followers on your social media platforms.

R: Your goal will be relevant as long as you ensure your ads and content are effective in reaching potential followers.

T: Your goal is time-bound as you’ve set it for the end of the following quarter.

20. Improve Employee Retention

“Within one year, I will improve employee retention rates by 80%. I will do this by implementing employee recognition programs. I will also offer professional development opportunities to employees at all levels to not only retain them but to make them feel the company invests in them.”

S:  Your investment in current employees will help them feel appreciated and improve employee retention. Your goal of reaching rates of 80% through implementing employee recognition programs and professional development opportunities is specific.

M:  You will easily be able to measure employee retention rates to make sure you will reach your goal of 80% by using company metrics.

A: Your goal is attainable, provided the employee recognition programs and professional development opportunities are effective in retaining your current employees.

R: It is realistic for you to expect an increase in retention rates with the implementation of such programs.

T: Your goal is time-bound by the end of one year from implementation.

21. Expand Geographic Reach

“I will expand the company’s geographic reach by establishing partnerships with local businesses. I plan to accomplish this by attending industry-specific trade shows. I will concentrate on trade shows in new regions. I will use the company metrics to measure progress for this ongoing process.”

S:  As you expand the company’s geographic reach, you’ll accomplish this by establishing partnerships with local businesses and attending industry-specific trade shows in new regions.

M:  You’ll be able to measure your success using your company’s metrics, which you’ll track as your geographic reach grows with new regions through partnerships and trade shows.

A: Your goal is attainable when the partnerships and attendance at trade shows are effective in expanding the company’s reach.

R: Your goal is relevant as it is realistic for you to expect the company’s geographic reach to expand with the implementation of your strategies.

T: Although your goal is ongoing, your progress can be measured at set intervals while it will continue to be ongoing overall.

Final Thoughts on SMART Goals for Small Business Development

Setting SMART goals for business development is the easiest way to succeed. Reasonably evaluating your ability to achieve them, setting deadlines, and being specific helps you stay motivated and fight the fear of failing. And if you still doubt that setting SMART goals will help you achieve your objectives, consider checking out our detailed article on goal-setting theory.

And if you want more SMART goal ideas and examples, be sure to check out these blog posts:

• 15 SMART Goals Examples for Increasing Your Sales
• 15 SMART Goals Examples That Fit Your Marketing Plan
• 6 SMART Goals Examples for Digital Marketing Professionals
• 7 SMART Goals Examples for Improving Your Networking Skills
• 7 SMART Goals Examples for Time Management & Productivity
• How to Resist Shiny Object Syndrome and Focus on What’s TRULY Important

Finally, if you want to take your goal-setting efforts to the next level, check out this FREE printable worksheet and a step-by-step process that will help you set effective SMART goals .

Small Business Trends

How to create a business plan: examples & free template.

This is the ultimate guide to creating a comprehensive and effective plan to start a business . In today’s dynamic business landscape, having a well-crafted business plan is an important first step to securing funding, attracting partners, and navigating the challenges of entrepreneurship.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.

Table of Contents

How to Write a Business Plan

Embarking on the journey of creating a successful business requires a solid foundation, and a well-crafted business plan is the cornerstone. Here is the process of writing a comprehensive business plan and the main parts of a winning business plan . From setting objectives to conducting market research, this guide will have everything you need.

Executive Summary

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.

Think of it as an elevator pitch in written form: it should be compelling enough to engage potential investors or stakeholders and provide them with a clear understanding of what your business is about, its goals, and why it’s a promising investment.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.

Overview and Business Objectives

In the Overview and Business Objectives section, outline your business’s core goals and the strategic approaches you plan to use to achieve them. This section should set forth clear, specific objectives that are attainable and time-bound, providing a roadmap for your business’s growth and success.

It’s important to detail how these objectives align with your company’s overall mission and vision. Discuss the milestones you aim to achieve and the timeframe you’ve set for these accomplishments.

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:

• Introducing three new products within the first two years of operation.
• Achieving annual revenue growth of 30%.
• Expanding our customer base to over 10,000 clients by the end of the third year.

Company Description

The Company Description section is your opportunity to delve into the details of your business. Provide a comprehensive overview that includes your company’s history, its mission statement, and its vision for the future.

Highlight your unique selling proposition (USP) – what makes your business stand out in the market. Explain the problems your company solves and how it benefits your customers.

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.

Define Your Target Market

Defining Your Target Market is critical for tailoring your business strategy effectively. This section should describe your ideal customer base in detail, including demographic information (such as age, gender, income level, and location) and psychographic data (like interests, values, and lifestyle).

Elucidate on the specific needs or pain points of your target audience and how your product or service addresses these. This information will help you know your target market and develop targeted marketing strategies.

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.

This analysis will enable you to spot market opportunities and anticipate potential challenges. Include data and statistics to back up your claims, and use graphs or charts to illustrate market trends.

This section should demonstrate that you have a deep understanding of the market in which you operate and that your business is well-positioned to capitalize on its opportunities.

Example: The market for eco-friendly technology products has experienced significant growth in recent years, with an estimated annual growth rate of 10%. As consumers become increasingly aware of environmental issues, the demand for sustainable solutions continues to rise.

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

A SWOT analysis in your business plan offers a comprehensive examination of your company’s internal and external factors. By assessing Strengths, you showcase what your business does best and where your capabilities lie.

Weaknesses involve an honest introspection of areas where your business may be lacking or could improve. Opportunities can be external factors that your business could capitalize on, such as market gaps or emerging trends.

Threats include external challenges your business may face, like competition or market changes. This analysis is crucial for strategic planning, as it helps in recognizing and leveraging your strengths, addressing weaknesses, seizing opportunities, and preparing for potential threats.

Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.

• Innovative and eco-friendly product offerings.
• Strong commitment to sustainability and environmental responsibility.
• Skilled and experienced team with expertise in technology and sustainability.

Weaknesses:

• Limited brand recognition compared to established competitors.
• Reliance on third-party manufacturers for product development.

Opportunities:

• Growing consumer interest in sustainable products.
• Partnerships with environmentally-focused organizations and influencers.
• Expansion into international markets.
• Intense competition from established technology companies.
• Regulatory changes could impact the sustainable technology market.

Competitive Analysis

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

By conducting a thorough competitive analysis, you can gain insights into your competitors’ strengths and weaknesses, enabling you to develop strategies to differentiate your business and gain a competitive advantage in the marketplace.

Example: Key competitors include:

GreenTech: A well-known brand offering eco-friendly technology products, but with a narrower focus on energy-saving devices.

EarthSolutions: A direct competitor specializing in sustainable technology, but with a limited product range and higher prices.

By offering a diverse product portfolio, competitive pricing, and continuous innovation, we believe we can capture a significant share of the growing sustainable technology market.

Organization and Management Team

Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.

Showcasing your team’s background, skills, and accomplishments instills confidence in investors and other stakeholders, proving that your business has the leadership and talent necessary to achieve its objectives and manage growth effectively.

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Describe the products or services your business offers, focusing on their unique features and benefits. Explain how your offerings solve customer pain points and why they will choose your products or services over the competition.

This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.

Example: EcoTech offers a range of eco-friendly technology products, including energy-efficient lighting solutions, solar chargers, and smart home devices that optimize energy usage. Our products are designed to help customers reduce energy consumption, minimize waste, and contribute to a cleaner environment.

Marketing and Sales Strategy

In this section, articulate your comprehensive strategy for reaching your target market and driving sales. Detail the specific marketing channels you plan to use, such as social media, email marketing, SEO, or traditional advertising.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.

This section is critical to convey to investors and stakeholders that you have a well-thought-out approach to market your business effectively and drive sales growth.

Example: Our marketing strategy includes digital advertising, content marketing, social media promotion, and influencer partnerships. We will also attend trade shows and conferences to showcase our products and connect with potential clients. Our sales strategy involves both direct sales and partnerships with retail stores, as well as online sales through our website and e-commerce platforms.

Logistics and Operations Plan

The Logistics and Operations Plan is a critical component that outlines the inner workings of your business. It encompasses the management of your supply chain, detailing how you acquire raw materials and manage vendor relationships.

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Quality control measures are essential to maintain product standards and customer satisfaction. This plan assures investors and stakeholders of your operational competency and readiness to meet business demands.

Highlighting your commitment to operational efficiency and customer satisfaction underlines your business’s capability to maintain smooth, effective operations even as it scales.

Example: EcoTech partners with reliable third-party manufacturers to produce our eco-friendly technology products. Our operations involve maintaining strong relationships with suppliers, ensuring quality control, and managing inventory.

We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Ground these projections in solid assumptions based on your market analysis, industry benchmarks, and realistic growth scenarios. Break down revenue streams and include an analysis of the cost of goods sold, operating expenses, and potential investments.

This section should also discuss your break-even analysis, cash flow projections, and any assumptions about external funding requirements.

By presenting a thorough and data-backed financial forecast, you instill confidence in potential investors and lenders, showcasing your business’s potential for profitability and financial stability.

This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.

Example: Over the next three years, we expect to see significant growth in revenue, driven by new product launches and market expansion. Our financial projections include:

• Year 1: $1.5 million in revenue, with a net profit of $200,000.
• Year 2: $3 million in revenue, with a net profit of $500,000.
• Year 3: $4.5 million in revenue, with a net profit of $1 million.

These projections are based on realistic market analysis, growth rates, and product pricing.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Regularly reviewing and analyzing your income statement allows you to monitor the health of your business, evaluate the effectiveness of your strategies, and make data-driven decisions to optimize profitability and growth.

Example: The income statement for EcoTech’s first year of operation is as follows:

• Revenue: $1,500,000
• Cost of Goods Sold: $800,000
• Gross Profit: $700,000
• Operating Expenses: $450,000
• Net Income: $250,000

This statement highlights our company’s profitability and overall financial health during the first year of operation.

Cash Flow Statement

A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.

By including a cash flow statement in your business plan, you demonstrate your ability to manage your company’s finances effectively.

Example:  The cash flow statement for EcoTech’s first year of operation is as follows:

Operating Activities:

• Depreciation: $10,000
• Changes in Working Capital: -$50,000
• Net Cash from Operating Activities: $210,000

Investing Activities:

•  Capital Expenditures: -$100,000
• Net Cash from Investing Activities: -$100,000

Financing Activities:

• Proceeds from Loans: $150,000
• Loan Repayments: -$50,000
• Net Cash from Financing Activities: $100,000
• Net Increase in Cash: $210,000

This statement demonstrates EcoTech’s ability to generate positive cash flow from operations, maintain sufficient liquidity, and invest in growth opportunities.

Tips on Writing a Business Plan

1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively.

2. Conduct thorough research: Before writing your business plan, gather as much information as possible about your industry, competitors, and target market. Use reliable sources and industry reports to inform your analysis and make data-driven decisions.

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.

5. Be flexible and adaptable: A business plan is a living document that should evolve as your business grows and changes. Be prepared to update and revise your plan as you gather new information and learn from your experiences.

6. Use visuals to enhance understanding: Include charts, graphs, and other visuals to help convey complex data and ideas. Visuals can make your business plan more engaging and easier to digest, especially for those who prefer visual learning.

7. Seek feedback from trusted sources: Share your business plan with mentors, industry experts, or colleagues and ask for their feedback. Their insights can help you identify areas for improvement and strengthen your plan before presenting it to potential investors or partners.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

The template is divided into the following sections:

• Mission statement
• Business Overview
• Key products or services
• Target market
• Financial highlights
• Company goals
• Strategies to achieve goals
• Measurable, time-bound objectives
• Company History
• Mission and vision
• Unique selling proposition
• Demographics
• Psychographics
• Pain points
• Industry trends
• Customer needs
• Competitor strengths and weaknesses
• Opportunities
• Competitor products and services
• Market positioning
• Pricing strategies
• Organizational structure
• Key roles and responsibilities
• Management team backgrounds
• Product or service features
• Competitive advantages
• Marketing channels
• Advertising campaigns
• Promotional activities
• Sales strategies
• Supply chain management
• Inventory control
• Production processes
• Quality control measures
• Projected revenue
• Assumptions
• Cash inflows
• Cash outflows
• Net cash flow

What is a Business Plan?

A business plan is a strategic document that outlines an organization’s goals, objectives, and the steps required to achieve them. It serves as a roadmap as you start a business , guiding the company’s direction and growth while identifying potential obstacles and opportunities.

Typically, a business plan covers areas such as market analysis, financial projections, marketing strategies, and organizational structure. It not only helps in securing funding from investors and lenders but also provides clarity and focus to the management team.

A well-crafted business plan is a very important part of your business startup checklist because it fosters informed decision-making and long-term success.

Why You Should Write a Business Plan

Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:

• Attract Investors and Secure Funding : A well-written business plan demonstrates your venture’s potential and profitability, making it easier to attract investors and secure the necessary funding for growth and development. It provides a detailed overview of your business model, target market, financial projections, and growth strategies, instilling confidence in potential investors and lenders that your company is a worthy investment.
• Clarify Business Objectives and Strategies : Crafting a business plan forces you to think critically about your goals and the strategies you’ll employ to achieve them, providing a clear roadmap for success. This process helps you refine your vision and prioritize the most critical objectives, ensuring that your efforts are focused on achieving the desired results.
• Identify Potential Risks and Opportunities : Analyzing the market, competition, and industry trends within your business plan helps identify potential risks and uncover untapped opportunities for growth and expansion. This insight enables you to develop proactive strategies to mitigate risks and capitalize on opportunities, positioning your business for long-term success.
• Improve Decision-Making : A business plan serves as a reference point so you can make informed decisions that align with your company’s overall objectives and long-term vision. By consistently referring to your plan and adjusting it as needed, you can ensure that your business remains on track and adapts to changes in the market, industry, or internal operations.
• Foster Team Alignment and Communication : A shared business plan helps ensure that all team members are on the same page, promoting clear communication, collaboration, and a unified approach to achieving the company’s goals. By involving your team in the planning process and regularly reviewing the plan together, you can foster a sense of ownership, commitment, and accountability that drives success.

What are the Different Types of Business Plans?

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

• Startup Business Plan: Tailored for new ventures, a startup business plan outlines the company’s mission, objectives, target market, competition, marketing strategies, and financial projections. It helps entrepreneurs clarify their vision, secure funding from investors, and create a roadmap for their business’s future. Additionally, this plan identifies potential challenges and opportunities, which are crucial for making informed decisions and adapting to changing market conditions.
• Internal Business Plan: This type of plan is intended for internal use, focusing on strategies, milestones, deadlines, and resource allocation. It serves as a management tool for guiding the company’s growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. The internal business plan also helps identify areas of improvement, fosters collaboration among team members, and provides a reference point for measuring performance.
• Strategic Business Plan: A strategic business plan outlines long-term goals and the steps to achieve them, providing a clear roadmap for the company’s direction. It typically includes a SWOT analysis, market research, and competitive analysis. This plan allows businesses to align their resources with their objectives, anticipate changes in the market, and develop contingency plans. By focusing on the big picture, a strategic business plan fosters long-term success and stability.
• Feasibility Business Plan: This plan is designed to assess the viability of a business idea, examining factors such as market demand, competition, and financial projections. It is often used to decide whether or not to pursue a particular venture. By conducting a thorough feasibility analysis, entrepreneurs can avoid investing time and resources into an unviable business concept. This plan also helps refine the business idea, identify potential obstacles, and determine the necessary resources for success.
• Growth Business Plan: Also known as an expansion plan, a growth business plan focuses on strategies for scaling up an existing business. It includes market analysis, new product or service offerings, and financial projections to support expansion plans. This type of plan is essential for businesses looking to enter new markets, increase their customer base, or launch new products or services. By outlining clear growth strategies, the plan helps ensure that expansion efforts are well-coordinated and sustainable.
• Operational Business Plan: This type of plan outlines the company’s day-to-day operations, detailing the processes, procedures, and organizational structure. It is an essential tool for managing resources, streamlining workflows, and ensuring smooth operations. The operational business plan also helps identify inefficiencies, implement best practices, and establish a strong foundation for future growth. By providing a clear understanding of daily operations, this plan enables businesses to optimize their resources and enhance productivity.
• Lean Business Plan: A lean business plan is a simplified, agile version of a traditional plan, focusing on key elements such as value proposition, customer segments, revenue streams, and cost structure. It is perfect for startups looking for a flexible, adaptable planning approach. The lean business plan allows for rapid iteration and continuous improvement, enabling businesses to pivot and adapt to changing market conditions. This streamlined approach is particularly beneficial for businesses in fast-paced or uncertain industries.
• One-Page Business Plan: As the name suggests, a one-page business plan is a concise summary of your company’s key objectives, strategies, and milestones. It serves as a quick reference guide and is ideal for pitching to potential investors or partners. This plan helps keep teams focused on essential goals and priorities, fosters clear communication, and provides a snapshot of the company’s progress. While not as comprehensive as other plans, a one-page business plan is an effective tool for maintaining clarity and direction.
• Nonprofit Business Plan: Specifically designed for nonprofit organizations, this plan outlines the mission, goals, target audience, fundraising strategies, and budget allocation. It helps secure grants and donations while ensuring the organization stays on track with its objectives. The nonprofit business plan also helps attract volunteers, board members, and community support. By demonstrating the organization’s impact and plans for the future, this plan is essential for maintaining transparency, accountability, and long-term sustainability within the nonprofit sector.
• Franchise Business Plan: For entrepreneurs seeking to open a franchise, this type of plan focuses on the franchisor’s requirements, as well as the franchisee’s goals, strategies, and financial projections. It is crucial for securing a franchise agreement and ensuring the business’s success within the franchise system. This plan outlines the franchisee’s commitment to brand standards, marketing efforts, and operational procedures, while also addressing local market conditions and opportunities. By creating a solid franchise business plan, entrepreneurs can demonstrate their ability to effectively manage and grow their franchise, increasing the likelihood of a successful partnership with the franchisor.

Using Business Plan Software

Creating a comprehensive business plan can be intimidating, but business plan software can streamline the process and help you produce a professional document. These tools offer a number of benefits, including guided step-by-step instructions, financial projections, and industry-specific templates. Here are the top 5 business plan software options available to help you craft a great business plan.

1. LivePlan

LivePlan is a popular choice for its user-friendly interface and comprehensive features. It offers over 500 sample plans, financial forecasting tools, and the ability to track your progress against key performance indicators. With LivePlan, you can create visually appealing, professional business plans that will impress investors and stakeholders.

2. Upmetrics

Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.

Bizplan is designed to simplify the business planning process with a drag-and-drop builder and modular sections. It offers financial forecasting tools, progress tracking, and a visually appealing interface. With Bizplan, you can create a business plan that is both easy to understand and visually engaging.

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

5. Tarkenton GoSmallBiz

Developed by NFL Hall of Famer Fran Tarkenton, GoSmallBiz is tailored for small businesses and startups. It features a guided business plan builder, customizable templates, and financial projection tools. GoSmallBiz also offers additional resources, such as CRM tools and legal document templates, to support your business beyond the planning stage.

Business Plan FAQs

What is a good business plan.

A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are to guide the company’s strategy, attract investment, and evaluate performance against objectives. Here’s a closer look at each of these:

• It outlines the company’s purpose and core values to ensure that all activities align with its mission and vision.
• It provides an in-depth analysis of the market, including trends, customer needs, and competition, helping the company tailor its products and services to meet market demands.
• It defines the company’s marketing and sales strategies, guiding how the company will attract and retain customers.
• It describes the company’s organizational structure and management team, outlining roles and responsibilities to ensure effective operation and leadership.
• It sets measurable, time-bound objectives, allowing the company to plan its activities effectively and make strategic decisions to achieve these goals.
• It provides a comprehensive overview of the company and its business model, demonstrating its uniqueness and potential for success.
• It presents the company’s financial projections, showing its potential for profitability and return on investment.
• It demonstrates the company’s understanding of the market, including its target customers and competition, convincing investors that the company is capable of gaining a significant market share.
• It showcases the management team’s expertise and experience, instilling confidence in investors that the team is capable of executing the business plan successfully.
• It establishes clear, measurable objectives that serve as performance benchmarks.
• It provides a basis for regular performance reviews, allowing the company to monitor its progress and identify areas for improvement.
• It enables the company to assess the effectiveness of its strategies and make adjustments as needed to achieve its objectives.
• It helps the company identify potential risks and challenges, enabling it to develop contingency plans and manage risks effectively.
• It provides a mechanism for evaluating the company’s financial performance, including revenue, expenses, profitability, and cash flow.

Can I write a business plan by myself?

Yes, you can write a business plan by yourself, but it can be helpful to consult with mentors, colleagues, or industry experts to gather feedback and insights. There are also many creative business plan templates and business plan examples available online, including those above.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.

How long should a business plan be?

A typical business plan ranges from 20 to 50 pages, but the length may vary depending on the complexity and needs of the business.

What is a business plan outline?

A business plan outline is a structured framework that organizes the content of a business plan into sections, such as the executive summary, company description, market analysis, and financial projections.

What are the 5 most common business plan mistakes?

The five most common business plan mistakes include inadequate research, unrealistic financial projections, lack of focus on the unique selling proposition, poor organization and structure, and failure to update the plan as circumstances change.

What questions should be asked in a business plan?

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

What’s the difference between a business plan and a strategic plan?

A business plan focuses on the overall vision, goals, and tactics of a company, while a strategic plan outlines the specific strategies, action steps, and performance measures necessary to achieve the company’s objectives.

How is business planning for a nonprofit different?

Nonprofit business planning focuses on the organization’s mission, social impact, and resource management, rather than profit generation. The financial section typically includes funding sources, expenses, and projected budgets for programs and operations.

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How to write SMART goals for business success today – with examples

Our experts

Written and reviewed by:.

The SMART framework is used by businesses to focus and define their objectives. It is hugely important for strategy-making and project planning, and goes hand-in-hand with setting effective KPIs .

We know what you’re thinking. Shouldn’t every business decision use smart thinking? Why do I need an acronym to tell me how to be clever?

But SMART goals aren’t a reflection of intelligence. They refer to five criteria used to transform nebulous concepts into concrete plans. They ensure every stakeholder agrees on what they are aiming for, keeping the organisation on track and conflict-free.

Below, we’ll explain everything you need to know about setting SMART objectives, including examples for common business scenarios. By the end, you’ll be able to write your own, so you can be confident that your company will achieve its short- and long-term goals in 2024 and beyond.

This article will cover:

What are smart objectives, why are smart objectives important, examples of smart objectives, smart objectives vs smarter objectives, are smart goals the same as kpis, who should set smart objectives, risks of not having smart goals.

• SMART goals FAQs

Setting a SMART objective (or SMART goal) means keeping all of your ambitions Specific, Measurable, Achievable, Relevant, and Time-bound.

All too often, goal setting is not properly communicated to the people who will actually be actioning the work involved.

SMART objectives are formatted as a clear, one-liner that makes it easy for both managers and employees to understand what the company is working towards, and avoids confusion over who will be responsible for successful delivery.

Organisations can then use the SMART definition to create, track, and accomplish their objectives and key results (OKRs) – essentially establishing an action plan for individuals, teams, and departments to adhere to from ideation, to delivery.

How should you structure a SMART objective?

When writing a SMART objective, the team or individual should first decide on what their overall goal is, before deciding how to make it SMART. Let’s breakdown what that actually means:

• Specific – ensure you are offering a focussed, clear target to aim for. Vague approximations leave room for employees to misinterpret what is expected of them, leading to confusion and inefficient working.
• Measurable – the stated target should include a metric that you will use to track­ progress towards a goal. This can be either quantitative or qualitative, but it cannot be too subjective, or it will be difficult to distinguish between win or lose
• Achievable – any SMART target must take into account the resources you have available to action it. Otherwise, you’ll end up wasting time and energy on an end point that is ultimately impossible to reach – hugely demoralising for employees
• Relevant or Realistic – consider if the target will align with your overall business or team strategy. Oth­er­wise, objec­tives could be suc­cess­ful­ly deliv­ered that have no impact on the over­all per­for­mance of the organ­i­sa­tion
• Time-bound – it is crucial that every aspiration has a deadline that it must be achieved by. This creates urgency, preventing the team from losing interest over time, and also provides a vital milestone for monitoring progress

Simply put, SMART objectives are all about improving efficiency; a particularly important concept for resource-stretched small businesses.

SMART goals set your workforce up for future success. They clarify your ideas and focus the team’s efforts on one target, rather than working to vague instructions like ‘improve the customer experience’. With SMART objectives in place, you’ll know exactly which tasks to prioritise, reducing the risk of wasted time, money, and energy on a fruitless project.

Here are five other benefits that SMART objectives bring to strategic planning:

1. SMART goals help to clarify objectives. Turning a loose idea in your mind into a tangible, written ambition provides focus for project team members, stopping them from getting distracted by a task that will not produce the desired outcome.

2. SMART goals provide a roadmap for success. SMART planning involves explaining not just what you’ll achieve, but how, to create a solid blueprint for actioning your goals.

3. SMART goals help track progress. Time-bound and measurable targets give you a clear milestone to work towards, as well as creating natural checkpoints for monitoring progress.

4. SMART goals help to identify and avoid risks. Project failure is almost always down to poor understanding of what is expected of the team. SMART objectives lay out exactly what is required and what is being worked towards, drastically increasing the chances of success.

5. SMART goals motivate and engage employees. Having an end goal in sight is an easy way to boost morale amongst team members. Similarly, SMART objectives tell each person what they are responsible for, giving everyone a task to own and be proud of.

It’s easy enough to understand the concept of a SMART objective. Far harder is putting it into a real-life situation.

Here are three examples of a SMART objective for realistic scenarios that your small business might encounter:

1. A small business wants to write a new mission statement .

SMART objective: Draft and finalise a new mission statement that reflects the company’s values, goals, and purpose within the next three months.

Why is this a SMART objective? 

The objective states a specific goal (create a new mission statement) that is directly relevant to the company’s branding and identity. Its success can be measured by the draft and finalisation, and it sets an achievable deadline.

2. A small retail firm wants to acquire more customers in its contact database

SMART objective: Increase the number of customers in our database by 15% over the next 12 months.

The objective is specific, and it will be measured using information from the firm’s customer database. 15% is an achievable increase within the set timeframe of one year. Acquiring new customers is also a relevant goal as it will help the business to make more sales.

3. Example 3: a tech firm wants to hire a Chief AI Officer

SMART objective: Recruit and hire a qualified Chief AI Officer with the necessary expertise to lead the company’s AI initiatives within the next six months.

The objective is easily measurable (success will depend on the recruitment and onboarding of a new team member). Six months is a clear and achievable timeframe, and having an AI officer is a relevant goal for a tech firm.

The SMART acronym was first coined in 1981 by US consultant George T. Doran. Since then, like many corporate terms and phrases, it has since evolved as others latched onto the concept and began adding their own ideas – in this case, about what makes a well-defined objective.

As a result, many organisations have now moved onto the idea of SMARTER goal-setting. So what does the extra ‘ER’ stand for?

Here, ER stands for ‘Evaluate’ and ‘Reward’. These two areas essentially turn SMART targets into a more analytical tool for assessing a company’s success or failure in achieving their objectives.

Evaluate = establish some specific checkpoints (incremental or at critical milestones) for managers to offer feedback to their reports. Encourage them to identify future obstacles and brainstorm solutions.

Reward = recognise what the target will accomplish so you can revisit whether or not the outcome met expectations. This discussion also allows you to revisit the objective in order to define new goals that will help improve.

Example of a SMARTER objectives

Let’s take the example we gave earlier of a SMART target (‘Draft and finalise a new mission statement that reflects the company’s values, goals, and purpose within the next three months’).

To make this SMARTER, a company might add in more detail about how it will monitor progress on the target, and what it will bring to the business.

It therefore becomes: “ Produce and review bi-monthly drafts of a new mission statement that reflects the company’s values, goals, and purpose within the next three months. The final version will cement our ethos and unique position in the marketplace” .

KPIs, or key performance indicators , are closely linked to the SMART framework. Both are particularly important for project management, but they serve slightly different purposes when setting goals.

While the SMART criteria enables businesses to articulate their objectives, KPIs are a data-led way to quantify them.

In terms of which comes first, it’s a bit of a chicken-and-egg scenario. KPIs are usually derived from SMART goals, but one can also inform the other to ensure that objectives are being met effectively and efficiently.

The following example illustrates the difference. A small business owner has set a SMART objective for the firm: ‘ draft and finalise a new mission statement that reflects the company’s values, goals, and purpose within the next three months ’.

They might then introduce three KPIs to measure this throughout the company, utilising the SMART criteria to ensure each indicator is defining what successful delivery looks like:

• The creative team will measure the number of drafts completed out of the total number planned, targeting 66% by two months
• The people team will measure the number of stakeholder suggestions incorporated following each draft, out of the total number received, targeting 80% by month three
• The marketing team will measure the number of customers who are aware of the new mission statement one month after publication, targeting 100%

Who is responsible for setting SMART objectives will depend on an organisation’s size, as well as the specific roles and responsibilities required to achieve the desired outcome.

Here’s a quick rundown of who should set SMART objectives based on the priority level of each goal given:

1. Organisational targets: CEOs and senior management are best-positioned to set high-level SMART objectives for the entire organisation. These could include strategic priorities, financial targets, or market expansion.

As these can require collaboration from multiple departments, they may also require input from cross-functional teams or task forces. Smaller teams with fewer specialists may also choose to bring in external consultants or advisors to assist with niche objectives.

2. Team or department targets: Managers and supervisors may set SMART objectives for their teams, while division heads should set aims for department-wide impact. These should be strategically chosen to ensure they align with, and contribute to, the overall strategy.

3. Personal targets: Managers and supervisors are most likely to set SMART objectives for their direct reports. Employees can set SMART objectives for their own personal and professional development, however, these should require sign-off from managers to ensure they align with team goals.

4. Project targets: Having clear project objectives is essential for effective project management and collaboration. During project planning, it is the responsibility of the project leader to decide on a set of SMART objectives, to be discussed and shared with the wider team.

Ignoring the SMART framework doesn’t necessarily mean that all your business objectives will be non-specific, immeasurable, unachievable, irrelevant, or time-wasting.

But in truth, SMART goals are about more than just helping you set targets. They also do a lot of heavy lifting when it comes to team working and time management.

Here are four of the biggest threats that come from not following the SMART framework when goal-setting:

1. Lack of focus – SMART goals turn your abstract ideas into a clear roadmap for what should be accomplished, as well as how and when. This can then be relayed to the entire workforce to ensure they rally around a common cause.

2. Unrealistic expectations – SMART targets provide clear and specific goals, keeping the organisation locked onto an achievable and realistic target. Without them, you’re more likely to set overly-ambitious targets that are doomed to fail.

3. Wasted time and resources – if you prioritise having an achievable aim that considers the resources available to action it, you will be more likely to develop the optimal master plan. This is a vital advantage when planning a project, in order to avoid going over budget or missing deadlines.

4. Dissatisfaction and demotivation – by creating a sense of achievability, relevance, and time constraints, SMART goals boost team morale and job satisfaction as members see their efforts contributing to meaningful objectives.

The SMART methodology is more than just a rulebook; it’s a secret weapon for stress-testing your game plan.

Together, these criteria ensure organisations can carve out well-defined paths from concept to realisation, preventing schemes from being muddied by vague descriptions and unrealistic aspirations. If your stated objective isn’t Specific, Measurable, Achievable, Relevant, and Time-bound, you’ll fall at the first hurdle.

They might seem like basic requirements, yet the outcome is anything but. SMART objectives foster team confidence, optimise resources, and produce data-backed insights through KPI reporting.

In today’s ever-changing economy, where every step can feel like a leap into the unknown, SMART goal setting provides a well-lit route to informed decision-making for SMEs.

• How often should SMART objectives be reviewed? How often you review your SMART goals depends on the timeframe you have set. If it’s a long-term goal, the team should carry out monthly checks to get constant updates on progress. Short-term goals, where the stakes tend to be lower, might be reviewed upon completion to get an idea of return on investment.
• What are some common mistakes people make when setting SMART objectives? Common mistakes when setting SMART targets include being overly ambitious with targets, being too broad when defining key performance indicators, or being unwilling to make changes if an objective becomes less relevant over time.
• How can I use SMART objectives to improve my business? SMART objectives are a more effective way to set goals and aspirations for your business. What you are targeting, and how you will get there, is clearly defined, providing focus and motivation for teams. As a result, SMART goals are useful for achieving any function, from marketing strategies, to project management, to overall growth.

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Related Articles

How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Additionally, she is a Columnist at Inc. Magazine.

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For many business owners, the question “where do you want to be in 5years?” can be extremely daunting. Especially in times of economic uncertainty. This is why setting SMART Objectives is so important for small to medium businesses.

Setting SMART objectives can support owners define their growth vision and build a clear path to success. Establishing objectives can motivate both the business owner and employees to strive for business success. Yet setting objectives that either lack ambition or are too far reaching can have the opposite effect.

First: what are business objectives?

Before looking at SMART objectives, it’s important to define what is, and isn’t, a business objective. In short, business objectives are results that are achieved – not tasks or actions to be completed.

For example, a business objective may be:

✅ Increase the number of subscribers by 25% within 12 months.

Opposed to an action or task that may be:

❌ Finish the company website by the end of the year.

The latter, which has a clear target, is an action – or task – which is completed. Whereas the former can’t be ‘actioned’ or ‘done.’ It must be achieved.

Business Objectives should always support the company’s overall business mission and vision.

Objectives vs. Strategies

When it comes to setting business objectives vs. strategies, business owners can remember the following simple phrase: implement strategies to achieve the objectives. Strategies are high-level decisions that guide the business towards achieving the objective.

For example, if the business objective is:

✅ Increase employee productivity by 10% over the next 2 years

The focused strategies associated with this may include decisions such as:

• Invest in new technologies to streamline efficiencies
• Increase employee training budgets to allow for upskilling
•  Review all ‘regular meetings’ to reduce non-critical face to face meetings

The objective is the result the company wants to achieve; strategies are how management decided to do it. Following this, is an implementation plan with actionable tasks.

Business objectives are therefore vital in ensuring the business stays focused and on track. And, setting SMART objectives ensures goals are aspirational enough to inspire effort, yet also realistic enough to ensure confidence.

What are SMART Objectives?

The acronym SMART stands for Specific, Measurable, Attainable, Relevant and Time-Bound.

Keep your objectives clear and simple. Each objective should only have one core achievement to focus on. You can have multiple objectives, but not multiple goals within the one objective. This ensures each objective is focused and clear. Further, the objective should be specific to avoid ambiguity.

✅ – Example of specific: Achieve a net profit margin of 30% ❌ – Incorrect example: Achieve a net profit margin of 30% and increase repeat business by 10% ❌ – Incorrect example: Grow the business by 30%

Objectives need to be able to be measured. In other words, business owners should know what success looks like and if an objective has been achieved or not. This means each objective should have a target associated with it.

✅ – Example of measurable: Increase number of subscribers by 25% ❌ – Incorrect example: Increase number of subscribers

Note: If it can’t be measured at all, it’s likely not an objective but may be a Priority or Strategy. 

Achievable and realistic targets are vital. Whilst objectives should be somewhat challenging and showcase improvements, setting objectives that are out of reach may cause owners and teams to disengage. Attainable also considers the team’s ability to achieve the goal.

✅ – Example of attainable: Increase current market share by 5% ❌ – Incorrect example: have 100% market share

Relevance is sometimes forgotten in SMART Objectives. However, it is one of the most important criteria as it establishes focus. Relevance means objectives need to align with the company priorities and current business focus.

✅ – Example of relevant: achieve an 8/10 average score from customer reviews collected across all online platforms. ❌ – Incorrect example: be loved by everybody worldwide

Each objective should include a timeframe in which to achieve it. A ‘due date’ allows business owners to stop, reflect and assess if the goal is still ‘SMART.’ Without being time-bound, objectives can linger for longer than required and become irrelevant.

✅ – Example of time-bound: Achieve an increase in revenue by 30% by EOFY 2023 ❌ – Incorrect example: Achieve an increase in revenue

There are many categories of SMART objectives. For example, a business may have financial objectives, marketing objectives, employee recruitment objectives and/or corporate social responsibility objectives.

However, knowing what SMART objectives are is only one part of setting objectives.

How to set SMART objectives

Deciding what the SMART objectives are can also be a challenge. Our Strategic Plan Framework recommends setting multiple objectives to achieve over time. We also recommend setting a larger 10yr/long term Future Goal to guide the development of the shorter 1-3yr SMART Objectives.

When setting objectives business owners can undertake the following actions to ensure they are SMART:

1. Establish the start point : before deciding where they want to get to, business owners should know where they currently are. This can be done by reviewing key business metrics such as financial performance, customer results and team efficiencies. Business metrics will vary, pending the industry the business is in, so it’s important to determine which metrics are right for the business and industry.

2. Do the industry and market research : even for business owners with vast industry experience, research is still vital. Knowing what is happening in the industry, the latest market trends, innovations and who key competitors are, will support setting SMART objectives. This is because research should highlight where there are opportunities to leverage and where the company should steer away from. Whilst there are few shortcuts to high-quality research, the Business Benchmarking Report provides an industry analysis that is designed to support business owners establish SMART objectives.

3. Focus on the key opportunities: in many cases, there will be a plethora of opportunities for businesses to focus on. Therefore, an important step is to determine which opportunities to choose. Opportunities should be selected based on sound research. One way to undertake the review is via a benchmarking analysis to determine how the business is performing against industry peers. This can highlight where the business is falling behind the industry benchmarks, and where they are excelling; thus showcasing the largest opportunities for growth. You can also find industry information via the Australian Bureau of Statistics. 

4. Know your capability, resources and gaps : reviewing internal capabilities ensures business owners set objectives that can be achieved by either internal skill sets, or by external support. Further, knowing the financial position of the business ensures owners can confidently invest in achieving the objectives. Subsequently, this also highlights financial gaps and shows additional funding required.

A few more tips on setting SMART Objectives

When establishing objectives, we recommend the following:

✅ Ensure they support the big picture: SMART objectives are just one part of a strategic plan. They should always support the company future goal, priorities and purpose. ✅ Make the time frame 1-3 years: in our experience, this is enough time to achieve the target without it becoming irrelevant. ✅ Include a variety of metrics: try to avoid having all financial objectives as this can steer the business too far in one direction. Instead have a variety of objectives such as customers, employees, quality, and value. ✅ Don’t make them public: objectives are for the business owner and some employees. The greater public and competitors don’t need to know them. Businesses can share their vision, mission and (in some cases) priorities. Objectives should be confidential and only shared with those who are working to achieve them (if required). ✅ They don’t have to be ‘nice’ : objectives may, at times, seem harsh. For example, an objective may be to improve labour efficiencies which may result in reduction of employees. The objectives are for the business owner and desired growth may result in tough choices.

The SMART Objectives are set – what’s next?

Once the objectives are defined and agreed upon by the required parties, the next step is to make high level decisions on how they will be achieved. These are the strategies.

From strategies, team leaders can form implementation plans that align with the company objectives and priorities.

Lastly: don’t set and forget

SMART Objectives are easy to regularly track to ensure they remain achievable. One way to monitor them is to establish periodic goals within the objective. For example, if the business has an objective to generate 120 new premium level customers in 12 months, the periodic goals may be to achieve 10 new customers each month.

Regular reviews ensure changes can be made if needed to strategies. Alternatively, objectives that are surpassing the expectation can be either stretched or enhanced to ensure the business continues a growth trajectory.

Sign up to our newsletter to get more information about our strategic plan framework or talk to us today to see if our Benchmarking Suite can give your clients a competitive edge

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Tips for Setting Better Business Goals

Table of Contents

If you want to take your business to the next level, setting the right goals could be the key. While creating the right goals for your company can be challenging, the best ones can make all the difference in your growth.

Hard work is required to build your business, but you also need direction. Setting solid and attainable goals is an excellent place to start. Read on to learn about different business goals and how to set them.

What is a business goal?

A business goal differs significantly from a New Year’s resolution and has way more money riding on it than a gym membership fee. Business goals are objectives tied to your vision for your company and the achievements you want to accomplish. 

Business goals may pertain to the whole company, certain departments, specific groups of employees or other areas of the business. Depending on your purpose, the goals you set to help your company progress can be daily, quarterly or yearly objectives. If you’ve created a business plan , you may have already mapped out your goals as action strategies.

What are SMART goals?

When setting business goals, it helps to be SMART, as in the goal-setting acronym that stands for “specific, measurable, achievable, relevant and time-bound.” SMART business goals can be highly effective.

A SMART goal should follow the elements in the framework, which we elaborate on below. By setting a SMART goal, a person plans out their goal to track and execute their specific target. Here are some pointers on what it means to set SMART goals.

When setting a goal, knowing precisely what you hope to accomplish and what actions you must take to reach your objective is essential. Let’s say you want to expand your revenue . These are some of the specifics you would want to decide as you set your goal:

• The dollar amount or percentage of revenue growth you want to achieve
• A deadline for when you expect to reach the objective
• Which department or individuals would drive this process
• What steps they would take to work toward this goal
• What resources you would need to allocate to help your staff meet this objective

Measurable goals use metrics such as dates and numerical values to track your progress. This approach not only encourages you to focus on the end goal, but also helps you evaluate how your efforts are helping you accomplish your objectives, which can help you stay motivated. In the above example, your measurable goal might be to increase your sales by $5,000. You might decide this should happen in a month, and then ask each sales team member to follow five extra leads per week in hopes of meeting this objective.

For a goal to be achievable, it must be realistic. For example, a goal to make $1 million in one day probably isn’t attainable for most of us, and setting such a goal would be setting yourself up to fail. Even though your goals should require you to expend extra effort, they should be reachable.

Teams can benefit from collaboration-based goals. Strengthen groups by creating interconnected objectives. Offer professional communication channels like Slack to facilitate coordination and celebrate achievements.

A relevant goal matters to your business; it should make sense and meet your company’s needs. Referring to the example above, would increasing your revenue make a difference to your business? Of course! However, not every business goal needs to be about revenue.

“If one of your big values is to serve others to the best of your abilities, then merely setting a revenue-based goal isn’t going to be enough to motivate you,” Heather Moulder, leadership and business coach at Course Correction Coaching, told business.com.

A time-bound goal has a deadline for the work you intend to do. When there isn’t any time limit, measuring your progress is hard. Deadlines can push you to action and help you work toward your goals efficiently.

What are examples of business goals?

Understanding a good goal can help you model your own goals for your small business. 

Let’s say you want to increase revenue by introducing a new service or product. Moulder said this goal is purposeful and beneficial to your company because it would help you better serve your clients and improve customer satisfaction. It would also mean taking on more responsibility for creating your new product or service, so you would need to prepare for the time and resources that entails.

Business goals can also be about your employees. If your objective is, for example, to improve or grow your team members’ skill sets, you can do so through actionable items, like creating a committee to hire a professional instructor for employee training courses . Then, the objective would be to have this instructor train your staffers for the next six months. When they complete the course, you can measure their skills by assigning tasks based on their learning. 

How do you write a business goal?

It’s one thing to have general goals in mind, but you need to put pen to paper. Writing your goals down is very effective.  “The physical act of writing down a goal makes it real and tangible,” said Angela Civitella, a certified business coach and founder of Intinde. “You have no excuse for forgetting about it.”

Here are two tips to help you write effective business goals.

1. Write in an active style.

The language you use when writing your goals impacts how you perceive them and whether you get them done.

“As you write, use the word ‘will’ instead of ‘would like to’ or ‘might,’” Civitella said. “For example, ‘I will reduce my operating expenses by 10 percent this year,’ not ‘I would like to reduce my operating expenses by 10 percent this year.’ The first goal statement has power, and you can ‘see’ yourself reducing expenses. The second lacks passion and gives you an excuse if you get sidetracked.”

Writing down your goals creates self-accountability. The goal is no longer simply in your mind but tangible. Whether you look at your goal in writing daily or revisit it months later, this extra step can signal intent and motivate you to achieve your objectives.

2. Narrow down what’s important.

Make sure your goals are important to you and your company. Ask yourself, “Does this goal motivate me?”

“If you have little interest in the outcome, or they are irrelevant given the larger picture, then the chances of you putting in the work to make them happen are slim,” Civitella said. “Motivation is key to achieving goals.”

There is such a thing as too many goals. Ensure you write down only extremely valuable objectives. A long to-do list with only two items crossed off can cause feelings of disappointment and frustration, which can add to demotivation and be incredibly destructive, Civitella said.

“Ask yourself, ‘If I were to share my goal with others, what would I tell them to convince them it was a worthwhile goal?’” she said. “You can use this motivating value statement to help you if you start to doubt yourself or lose confidence in your ability to actually make the goal happen.”

What are the different types of business goals?

Four types of goals are beneficial in the business world. Read on to learn more about each of them.

Activity-based goals

Activity-based goals require you to perform specific tasks or activities. For example, you might set a goal to make 20 weekly client phone calls.

Process-based goals

Process-based goals require you to focus on internal processes, strategies and behaviors. “Some examples would be resetting business policies for better efficiency or developing a new training program for staff to help their communication with customers,” Moulder said. 

Outcome-based goals

Outcome-based goals focus on the results of your efforts. You may have less control over these results if they’re based on consumer or client behavior. 

“An example of this would be to get 10 referrals from existing customers,” said James Pollard, owner of The Advisor Coach. “You can’t directly control whether or not they give you any referrals, but you can influence the process by asking.”

Some goals are a hybrid of process and outcome goals, explained Moulder. For instance, a service-based business might set a goal to implement a new staff training program to improve customer service. The process portion of the goal is implementing the training program. The outcome is improving customer service, which you could gauge by a reduction in service cancellations or an increase in repeat customers . 

Personal goals

Personal goals are those that business owners set for themselves. These may be related to maintaining or improving your health, work-life balance , or professional development. Knowing what you want for yourself is as essential as understanding what you want for your business because your personal goals affect how you run your company. 

Celebrate reaching both your short-term and long-term goals. Choose rewards that give you time away from your business to unwind, like an outing with friends or a family vacation.

Why is setting goals important in business?

We set small goals in our everyday lives, such as making it home in time for dinner or eating salad for lunch. Goals are vital because they give you and your business direction. With them, you may perform at your best.

Without goals, however, it’s hard to measure your business’s success, which makes it challenging to recognize what aspects of your company are doing well and where growth is needed. Objectives and a mission statement also keep you and your team aligned. When everyone knows the company’s purpose and how their roles contribute to the mission, it improves morale and increases productivity.

Julie Thompson contributed to this article. Source interviews were conducted for a previous version of this article. 

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