Are You Planning to Fail in Your Business?

It has been said "If you fail to plan then you are planning to fail". I don't know any business owner who makes a plan for their business to fail. Who goes into business saying "Gosh I've always wanted to pour a lot of time, money and energy into a business so I can have the satisfaction of seeing it fail"? That's just silly. Unfortunately, I do know many business owners who fail to create a business plan. They don't create a long range vision for their business or goals to help them get there. Instead, they tend to go with the flow and fly by the seat of their pants. They allow current trends, world news and local economics to direct the course of their business. This makes about as much sense as climbing into a sailboat with no sailing experience, allowing the wind to take you where ever it blows and hoping you end up in a fabulous, exotic paradise.

Without a clear plan and specific goals, you are unintentionally creating a plan to fail. The truth is that in all my years of working with people, I have come to realize that very few people know how to create effective goals. Some vaguely formulate them in their head and very few actually write them down or talk about them to others. Without clearly formulated goals that are written down and worked with on a regular basis, your business (and your life) is going nowhere fast.

Here are some tips on how to set effective goals

1. Decide what you want. While that might sound easy, for many people it is actually very difficult. Most people are much more comfortable identifying, talking about and focusing on what they don't want. When asked to list what they do want, they are at a complete loss. The trick is taking what you don't want and using it to help you decide what you do want.

2. Write down what you want in clear, positive language. The most common mistake people make is continuing to include what they don't want in their written goals. So instead of saying "I don't want to worry about money" or "I don't want to work with unmotivated clients" say "I want financial freedom" and "I only work with clients who are ready to succeed".

3. Put them in the SMART Goals format (Specific, Measurable, Action oriented, Reachable, Time specific).
Specific = what exactly is your desire?
Measurable = what objective indicators let me know I am making progress toward my goal? How will I know when I have reached my goal?
Action Oriented = what actions are necessary to make that happen and give my goal some feet?
Reachable = is it reachable and realistic?
Time Specific = when will you accomplish your goal?

Let's look an example. Perhaps you want more money.
S - I want to receive more money.
M - $20,000 more a year or $1500 more a month.
A - I can get more training or education to increase my value in the market place. I can invest differently. I can decrease my expenses. I can create another income stream (real estate rentals, home based business, online sales of products).
R - are these things realistic?
T - by the end of the year (12/31/08) I will have increased my income by $20,000.

Okay, now you have the first 3 steps in creating effective goals. Next time I will discuss the techniques that exponentially increase the likelihood that you will achieve your goals and take your business to new heights.

Melanie Yost LCSW