SMART Goals: Explanation & Examples for Your Business

SMART Goals: Explanation & Examples for Your Business

In order for your business and the whole business to have a direction, you need to have goals in front of you. They must be neither too exaggerated and grandiose, nor too low, so that they don't discourage but motivate you. SMART goals are just that, according to the method of the same name. Learn how to set them.

Why it is important to have goals

Goals are usually part of a business strategy, they set the direction of the business and are a measure of success. Properly set goals are a guideline for everyone in the company to work and activities to reach their goals.

How to set goals in business

The SMART method will help you to set goals for your business. It is an acronym of the initial letters describing the characteristics that SMART goals should have.

SMART goals are, according to it:

  • S – specific – defined as precisely as possible so that everyone has a clear idea of them and knows where they are going,
  • M – measurable – i.e. set in such a way that their fulfilment can be measured, expressed in a numerical value,
  • A – achievable – appropriate to the market situation, the number of employees or your finances, so that these goals are also accepted and embraced by everyone concerned and everyone tries to meet them,
  • R – realistic – neither high nor low, i.e. goals that you will not meet right away but will motivate you,
  • T – time-bound – set a deadline for when you have to meet your goals so that you can evaluate whether you have achieved them.

SMART goals - examples

When setting goals, always make sure they meet all five of the above points. Try to define and describe them as accurately as possible so that you know by when you need to meet them and how to assess whether you have achieved them.

Instead of vague goals:

  • to improve business,
  • sell more,
  • reach more leads,
  • make more leads,
  • close more deals,
  • not lose clients,

set SMART goals like this:

  • Increase sales by 10% in the next quarter,
  • to achieve a turnover of one million crowns within 2 years,
  • reach twice as many leads next month,
  • make 20 cold calls a week,
  • close 5 more deals next year than last year,
  • not lose more than 5% of clients per year.

You can have several goals in the store, usually one basic goal and several sub-goals are recommended. The primary goal tends to be long-term and more comprehensive, while the sub-goals are smaller and shorter-term, achievable within a year. However, the five conditions for SMART goals should all be met, all the time.

Once you have your goals defined, make sure everyone knows about them. Make all colleagues or employees aware of the goals.

To make the goals even SMARTER

There is nothing left to do but to gradually meet the goals and then evaluate them. The SMART method is extended by two more letters: 

The goals should still be:

  • E – evaluated,
  • R – rewarded.

Evaluate your goals regularly to see if you have achieved them. If so, it's time to reward yourself - and thus motivate yourself to achieve more goals.

Check how you're doing on your SMART business goals in CRM. Among other things, it will help you keep track of your leads and where they are in the sales process.