Episode 160 – 2022 Business Planning – Part 2 – Setting Goals
Goal Setting for 2022This really depends on what you want from your business. Every business goal is going to be different, so it’s important to set your own goals, based on your dreams and personal lifestyle.Abstract Goal settingThis is something that's not necessarily measurable (but could be), but more of an idea or a dream.What is the fundamental thing you want?Vacations/Cars/House?Money to retire?A business to pass onto your family?Is it the freedom to do other things?Quit your day job?More time with family?You want to make enough money to support your family, you want to prepare for retirementTangible Goal SettingThis is the actual numbers, this is measurable through specific things.How much you want to make [Profits]?How much do you want to pay yourself?How much time do you want to spend with your family/friends/hobbies?How much money do you want to have in the bank for retirement by year end? (goals can be a step towards another goal, maybe THIS year you want to put away $10k)Example, you want to put $75k in your paycheck, you want to put $5k in retirement fund. Then you want the business to PROFIT $20k.You will have to do some math on how much sales this means (which might be another convo)let’s use a simple number that you profit after costs 40% so that means in order to reach your goals:250k in sales,40% profit = $100k (75 to you, 5 to retirement, 20 to profit)Goal Setting all the way downNow that you know what you want to do each year. You have to consider how much that breaks down to each month and each sale.(use last years data if you have it to help)in the above example 250k / 12months = $20k per month.If your average sale is $500 that means you are selling 40 deals a monthif your average sales is $1000 that means you are selling 20 deals a monthThese should be your GOALS.If you want to achieve your dreams, these are the goals you have to hit. Now you can alter these if you don't like the numbers.Examples:Well I think selling 40 deals is a lot of work, I want to sell 20 (then you need a higher average ticket)250 k in sales feels like it should generate more profits, then make sure your costs and retail hit a margin that works for your goalYou aren't sure HOW you will hit those goals.... that is for the next podcast.How to implement your goals, What can you DO to help you reach them?