Do SMART Goals Exist for Small Business Owners?

A couple weeks ago I was on a 2022 planning call with someone who made the statement that she doesn't believe in SMART goals. As one who plans and strategizes for a living, I was intrigued by her statement...and I'd have to say I agree.

For those that aren't familiar with the term, SMART goals were mainstreamed back in the 1980s and stand for goals that are specific, measurable, achievable, relevant and time-bound.

SMART goals may work for large corporations that have a certain level of long term planning and initiatives but it won't work well for the small business that is adjusting monthly, if not more frequently, to the demands of its customers and market fluctuations. So, what is a small business supposed to do? How are they supposed to plan?

My suggestion, Plan in Pencil.

As a small business owner, I annually review my goals for ten years from now, five years from now, three years from now and one year from now. They should all build into each other. Once I have my immediate and longer term goals identified, then I build into the next year ideas of how to reach those goals. I pick one or two ideas and then start coming up with a plan to reach those goals. BUT, as the year is going on, as opportunities are being presented or taken away, I compare them against what my goals are. If they will push me towards reaching my larger goals, than I pursue them. If they don't, I let them pass me by.

I should note that my long term goals are not necessarily focused on something specific I want to accomplish but more about how I want my life to look or the type of person I want to become. The goals are less about business operations and more about why I am creating my business and how I want to run it. Yes, business operations are important but those don't weigh in on my business planning...I address those in my quarterly operations plans.

An excerpt from my upcoming e-book explains it this way...

I once participated in an internship that included creating a 10-year plan for my life. And now, almost 25 years later, almost NONE of what I had planned has actually happened…and if it did, it for sure wasn’t in the timeframe or way that I had thought. Initially, I was disheartened. I had good goals and dreams. They were going to make an impact and change the world! You know, like most idealistic dreams of a very young 20-something that hasn’t experienced much of life yet...Upon hindsight the reasons I set the career goal I did was because of my idea of what it took to do that goal. More specifically, I wanted to be an emergency room physician because I liked the fast-paced, quick think on your feet, having to pull on a lot of knowledge and helping people aspects of the job. Well, I never made it to medical school but throughout my life, I’ve helped with disaster training and response, travelled internationally and assisted medical professionals in helping people, helping others in different areas that I’m gifted in, and generally found that I’ve been able to accomplish the things about the job that I was drawn to through different roles. So, the destination didn’t happen, but had I focused on becoming the type of person that I thought it would take to do that role, the goal would still have been realized.

So, as a business owner, what are your long term goals...is to make $1M annually, to provide for your family's future, to allow time and financial freedom to be more present in life? Whatever it is, spend some time thinking about it and then write it down. Then think about what needs to be in place for you to actualize those dreams and start building that.

What can you do in the next year to move you closer to realizing those dreams?

Remember, planning is a process. Planning in Pencil will allow you the freedom to adjust as needed when things come up, or as life happens, to adjust the course but still allow you to realize those dreams.

If you're interested in finding out more about how Planning in Pencil works in real life, schedule a free call and let's chat!

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