Setting Goals and Strategies

 

 

How to achieve them

Have you established your personal and business goals and strategies? If you are going into your own business then now is the time to set your goals and strategies. It is a good idea to draw a separate chart for your personal and business goals. 

A goal is………. where you want to go

At the top of a piece of paper draw a circle and write in that circle where you want to be in two years or better still five years.

A strategy is …………how you will get there

In individual circles, set down each of the steps you must take that will link to the top goal circle. At times, like in any business, the circles may first link to each other before they reach the goal.

 

For the business:

It may be to make target sales of $156,000 per year = This may be sales of 156 produces valued $1,000 each = $156,000 per year

For personal:

it may be a family holiday overseas valued at $25, = Holiday overseas: savings per week of $520 over 48 weeks = $24,960 per year. (48 weeks because you will be on holidays for the other 4 weeks)

 

Time frames.

Next question must be, in what time frame? Trying to develop a business without a time frame is much like taking a trip overseas without destination, departure or arrival times. Ultimately, you will have no idea where you are going, when you will arrive or if you have arrived at all.

Having set your time frames, it may stand to reason there could be times when external influences mean you will need to cancel or extend the time frames you initially set down. That's fine, like life, nothing stays the same and your business will be influenced by many events beyond your control. You simply reassess your time frames just as you would reschedule a flight. 

What income are you expecting out of this business?

Now let's look at the income you want to derive from this business venture. Your lifestyle and expectations may well be beyond what you are able to generate in the first few years of your business. This is the crucial part of any business plan. If you can't generate enough to make a decent living out of your business then it may well be better to find a job with a regular income.

If you are looking at a personal income $52,000 per year, you know you will need to generate sales of at least $1000 per week, every week to cover this, not forgetting that in fact, the sales would need to exceed this figure to allow for overheads and profit. A simple rule to follow when working out the income you want is:

 Using a target wage of $52,000 per year (simplified as 1/3 wages, 1/3 overheads/ 1/3 profits)

Wages + overheads + profits = what you need to generate in sales

$52,000 (wages) + $52.000 (overheads) + $52,000 (profit) = required $156,000 turnover in sales

However, to generate this sort of income you will need to know what quantities to produce (manufacturing) or appointments to make (service).  And, if in fact, you, as a sole operator can constantly produce the required amount to reach this income level, taking into account the peaks and troughs that may occur. For example, swimsuits are less likely to sell in winter than in summer unless a strong overseas market has been established to sustain production at the same level throughout the year. Every business, regardless of what it is, will at some time experience a dip in sales.

Fads and trends may dictate how much stock suppliers hold or how long it takes to source them. World events, petrol prices and level of demand will have some bearing, as will shipping costs and the list goes on. Adequate consideration of these events must be add in a ‘what if’ scenario when planning your strategies.

Fro the time you make the conscious decision that you want to go into business for yourself, you are in control, you will be responsible for everything that happens to you good or bad, you will need to feel confident in your ability to operate your business, set a clear path, match your personal and business goals against your performance and learn to identify problems in advance. You will need to base your decisions on knowledge and not emotions.

The disgrace is not in the decision you make, but in not making a decision.

 

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