How do I set realistic goals for a business plan?
I am just getting started with my own business. I am thinking through my budget and how long I think it will take to start producing revenue. I feel like I am making guesses. Is there a way to make this more of a science?
google "SMART" GOALS and you will see more depth to each of these topics. Setting goals around this set of objectives will ensure you have realistic targets for your business.
Happy to help with this, its all abut scenario mapping and what if calculations, then you go with the one that feels right against a likelihood matrix. Give me a shout of you'd like more help. Neil
I use a 3-phase process with my clients. Discovery -> Roadmap -> Execution
Each phase has several steps. The trick is to create a specific vision and lock onto it. Do an accurate assessment of the current state of things. Measure the GAP from here to there. Then create milestones every 90 days on the way to the desired outcomes. The quarterly milestones must contain S.M.A.R.T. goals. Specific, Measurable, Action Oriented, Relevant, and Time Sensitive. Put those in your calendar and execute. Measure your progress. Hold yourself and your team accountable.
It gets down to this: What do you want to have happen? What are the things most likely to cause that to happen? Do you have what you need to do those things? Are you disciplined enough to do those things. What are you going to stop doing to make room for what you must do?
Make lists. Be sure they are focused on the mission, vision, and purpose. Every moment or dollar invested should be about the journey to a specific outcome.
That's how we built a billion dollar school picture company, from small beginnings in garages and living rooms. This works, whether you are trying to lose 20 pounds, win an event at the olympics, or build a business. True focus and the power of believing is all within your grasp.
First of all You need to plan your cash flow , your ability to run the business , you need to calculate you expenduture & expected income during first 3-6 months , once you start you need to manage your expenses , you can pass difficult times once you start earing .
You practically answered the question yourself. The keyword here is "Realistic."
Think in terms of current priorities vs. what you're willing and able to invest in this business in terms of time, funds, resources, investor partner relations, depth of social interaction, degree and sophistication of marketing strategy etc. Regarding your business plan I say initially consider a plan with business building tasks that are relatively simple and easy to fulfill with low overhead costs, and put in place a plan to gradually grow from there. You'll find a helpful article on the subject at http://www.smallbusinesssuccesstips.net/p/online-business-plans.html.
Do research on what similar business have achieved in terms of revenue etc, talk to people in the industry, suppliers and vendors of this industry as well as online research. Set realistic goals based on your level of investment in the business and how many people you can hire to help you generate business. For eg, if I am starting a new Italian restaurant, I would go and visit several Italian restaurants in the city to see what type of business and revenue they are making, talk to employees, suppliers, other founders of restaurants, industry studies etc and then compare your level of investment and table head count and dish prices, to come up with preliminary estimates of customer headcount, table turn and in turn revenue, and then budget
Good question Sara, thanks for asking it. Too often I see small business owners set unrealistic goals within their business because they don't understand the cause and effect within their company. You must understand where you have capacity challenges within your business and set your goal and objectives to deal with them. We call this process "tuning your revenue engine". You can watch our resources video here on mosaicHUB to learn the concept http://www.mosaichub.com/resources/resource/tuning-your-revenue-engine-2 .
Once you have this information it is easy to set realistic goals and develop a "high impact business plan" to achieve them. There is more on this process on our website http://dinoeliadis.com/business-planning-with-high-impact/
I hope this helps Sara. Good luck! - Dino
Have you given thought to all the parameters of your business idea?
For my prospective clients, I provide them with a questionnaire of 20 questions that you must honestly answer. Completion of this form will organize your ideas
Good bits of mixed advice. You need to be realistic about three things, What you have as a starting point. What your market opportunities are and finally what it is going to take for you to realise the outcomes you desire/envisage.
Starting with the money/resources you have should only be done to help you identify what else you will need. If you know not your market ... your are doomed (borrowed from Sun Tsu - The Art of War).
Downloading a template and creating your own business plan is also fraught with faults ad you don't know what you don't know. Go invest in a Coach/Adviser and do the plan together. It will be more realistic and achievable.
Here is an easy read on SMMART goals: