Business Targets
Planning for Success

Are you hitting your targets in business?

Learn how setting KPIs and monitoring your financial reports can help you hit your targets.

The year has well and truly started, and by now, some of the cracks are beginning to show in our businesses. For most of us, we reached the finish line of 2021 and looked back on the year that was and though, “what was that?!”

February is the perfect opportunity to begin to assess the goals that we have set for our business in 2022. At this stage, those cracks are micro in size – but if we neglect those small cracks, they will grow bigger and worse before we know it.

The foundation for success in business is to develop goals and targets that are both reasonable to reach and measurable, especially financially. It’s essential that you measure your financial results and key drivers in your business. Otherwise, you can’t implement meaningful improvement strategies and achieve your business goals.

3 Ways to Ensure You Are Hitting Your Business Targets in 2022.

1. Setting a SMART Goal for your business

A SMART goal is a quick and simple way to ensure your business is progressing with a clear direction. SMART goals consider relevance, time and accountability; and allow your team the opportunity to contribute to the success of the goal.

A SMART Goal is a goal that is:
S – Specific – Describes exactly what needs to be achieved.
M – Measurable – Includes a metric with target that indicates success.
A – Achievable – Sets a challenging but realistic target.
R – Relevant – Goals must align with overarching plan and vision.
T – Time – Sets a deadline for achieving the goal.

Why should I set SMART goals?
Ensuring that a goal includes all five elements of the SMART criteria is the easiest way to ensure your goal is setting you up for success! Review your SMART goals every 30, 60 and 90 days to make sure it stays relevant and important to your team.

2. Setting and Reviewing KPI’s (Key Performance Indicators).

Key Performance Indicators allow you to measure and monitor whether you are on target to achieve your goals or not. The better you understand your business, the easier it will be to increase your profits and free up cashflow.

Purposeful KPIs help to establish the key drivers in your business (financial or non-financial) and learning to accurately measure these and apply strategies and tactics to improve them is a fundamental step to business success.

Investing a little time each week toward your KPIs can pay big dividends, improving both your business performance and personal life. It’s remarkable how simple changes to your business processes can improve your key drivers.

3. Creating Management Reporting

Getting clear and simplified management reports based on your KPIs will show you your progress towards your target or allow you to modify or improve processes to put you back in line with your targets.

Your monthly Management Report will provide a snapshot of your results, ensuring you understand your financial position and have accurate and up to date information to base your decisions on.

Some benefits of management reporting are:

  • Establish Key Performance Indicators for your business and set achievement targets
  • Receive a customised monthly management Report to regularly measure your performance
  • Access a visual dashboard summary of multiple reports, enabling you to quickly interpret your results
  • Implement best practice monitoring to enable better decision making
  • Develop the discipline to prioritise reviewing your results each month and identify areas for improvement
  • Understand the factors that impact your results so you can develop strategies to maximise your results
Business Key Performance Indicators (KPI's)

What are KPI’s?

Key Performance Indicators (KPI’s) are linked to your business plan and are a way to measure your key business drivers. These include key financial and non-financial drivers.

Financial KPI’s can include:

  • Gross Profit %
  • Debtor Days
  • Monthly Sales

Non-Financial KPI’s can include:

  • Lead Generation & Conversion %
  • Customer Rentention Rate
  • Customer Transaction Frequency

What KPI’s do you monitor in your business? Learn how to calculate your financial KPI’s by downloading our KPI’s calculation sheet here.

So, where to start? Mending the cracks of course!
Take an inventory of the goals that have already been set in your business, and make some adjustments. This could mean changing your general goals that have been set to SMART goals, ensuring they are measurable and specific to your targets. Once you’ve set your goals, continue to adjust and revisit them as the year progresses. If you continue to review your goals and make amendments, you can fill in those cracks before they become a serious problem!

Need help? Book your complimentary meeting here.

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