Why and How to Set Business Goals

by

Dave Thiemecke
VP of Learning & Development
March 27, 2018
/
minutes to read

Get to the Point

  1. Lay a Roadmap - You need to look at what you have and where your business is currently. Then you need to decide where you would be ideally in the next year.
  2. Set Goals - Take the abstract roadmap you have put together and make quantifiable and actionable goals. This will help you steer your company toward growth.
  3. Grow - Goals let you more easily measure success. When you know what is working and helping you grow, you can continue to set higher and bigger goals.

It doesn’t have to be the New Year to set goals and resolutions. The minute you realize you don’t have something specific you’re working toward, it’s time to reassess. Look at your business and everything you hope to accomplish in the upcoming year, and set goals to get there. Most people think of a resolution as something personal, but it's important to set resolutions for your business as well.

Here’s 4 Reasons Why You Need to Set Business Goals:

  1. Measure your success: Knowing where you started and how far you have come is important to the perspective and growth of your business. It’s hard to see your business growth from a day to day standpoint, however, when you measure growth and profitability you understand the big picture.
  2. Leadership & Teamwork: Setting goals is good for both your leadership team and your staff to find ways to work together. When everyone understands the end goal; your team’s work together and understand management decisions and priorities.
  3. Knowledge is Power: When you set a goals and actively monitor your progress you gain insights to your business. You’ll be able to better understand implications of decisions made by tracking errors and successes.
  4. Focus: Setting specific goals allows you to focus what is most important to your business. By concentrating your efforts, you’ll hone in on what steps need to be taken in order to accomplish each goal.

Now that we have some background on why setting a goal is important for your business, let’s dive into five common New Year’s Resolutions for businesses. Hopefully, you’ll find something that resonates to your business (even if it isn’t the New Year).

5 Examples of Business Resolutions

Get Organized!

Getting organized will give you clarity into the tasks that need your attention the most. Get rid of the clutter, the endless piles of paper, or just by putting everything into its proper place you’ll alleviate stress and problems.

Losing track of payments, appointments, employee information and so much more will derail you on your quest to being successful. Getting yourself organized at the start of the year will bring success throughout the year. Take advantage of programs that can do the organizational work for you. Field Nimble software and mobile apps can do this by having a centralized customer and product database. Let your whole team use one platform that gets rid of the paper and presents you professionally to your customers.

Improve Customer Service

Improving your customer service can be as simple as making yourself more available to customers or improving your communication with them. Giving customers more outlets to reach you through support lines or social media is an excellent place to start. More channels of communication provide valuable feedback and give customers an opportunity to refer your services. Pointman’s Field Nimble app partners with Nearby Now, which can open up your lines of communications with customers allowing your techs to send out referral requests to your real customers.

Embrace Technology and Social Media

Using technology and social media can feel like a daunting task, especially if it's not something you are familiar with. Doing away with the paper trail and transferring your business practices over to a website, mobile app, or mobile device can be overwhelming. Fortunately, there are many SAAS companies that can make technology integration an easy transition for you. By going paperless, you’ll increase revenue through efficiency, better customer data, and elimination of waste and duplication. Interested? Check out Pointman apps and software for contractor and field service management.

Is social media is on your radar? If it is, start small and enter into one channel at a time. Facebook is a great first step, and it gives you a forum to get referrals, reviews and engage with customers for promotions, etc.

Better Communication:  

Bad communication can lead to misunderstandings, confusion, mistakes and cost you money. Setting a resolution to improve your company's communication starts with defining the sources of confusion and identify your desired outcome. Be specific, and then outline the actions that are needed to accomplish this goal.

Charge Your Worth:  

Feeling underpaid and undervalued is a common problem for many businesses. You know the time and effort you put into your work and yet you don’t reap the benefits.

Here at Pointman, we can help you figure out pricebook strategies to help you get the most revenue for the work you do. Each year your fixed costs increase, making it difficult to determine what you should be charging. Don’t get stuck into offering low prices to compete when you aren’t making ends meet.

What resonated with you on this resolution list? And, if you had to pick just one resolution for your company, what would it be? The Pointman team is here to help you, “Win at Paperless.” Contact us to learn about paperless solutions for your home contracting business.

Look at Pricing

The start of the year is a great time to look at pricing. Usually, you have an idea of how your company fared the year prior, and you want to ensure you will continue to grow in the months to come. Many of us make New Year’s resolutions with respect to spending or saving in our personal lives, and it’s no different for business owners. Making sure your pricing is in line with where it should be is one of the strongest ways to start the year the right way.

Part of looking at your price book is finding where the issues are, and that can take time. An HVAC company in January is going to be very busy, so it’s a difficult time for a close look. However, a plumbing company might not be as busy. Whenever you tackle this job, your best bet is to look at what your labor rates are. Start there, and let it trickle down across the board. Ask yourself, “Are my labor rates helping my business stay profitable?”

Remember, there are many different services out there and many different groups or communities that you can engage. Never hesitate to say, “Hey, I’m a business owner in Florida. What should my labor rates be?” You can build your price from there. There are also some great billable hour calculators available.

Set Goals

There is no better time of year for looking inward than January. Set your personal goals and company goals for the following 12 months. If you can break those down into departmental goals, even better! Perhaps that means a CSR booking closing rates a little better, or a truck doing 250,000 a year rather than 200,000.

Many companies have found that using an Objectives and Key Results (OKRs) goal-setting system pays off. Looking for a guidebook when it comes to OKRs? Check out Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs by John Doerr. 

One key question is the best way to handle setting goals: Is it smarter for business owners to handle this solo, together with staff, or to delegate completely? 

The best approach is to set goals at the department level. As an owner, you need to take the time to understand what the goals are in each department, and make sure they are in line with your goals for the company. No one likes to set unattainable goals for themselves, so make sure you push your departments to set goals that are lofty, rather than simple ones to feel good about hitting. Entrust your staff to aim higher, and watch how they respond.

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