How to Quantify Your Goals

Quantifying your goals can be a long process. You'll have to gather a lot more information before you're ready to set specific targets. Eventually, you'll probably want to put those goals together in the form of a business plan.

Guidelines

But before we move on to the process of getting that information, let's take a look at some of the guidelines you should follow when quantifying your goals:

• Be specific — Establish targets that can be easily measured, and use numbers as targets whenever possible. For example, you may set a goal of selling your goods or services across a particular number of counties or states, having a certain number of employees, or reaching a particular level of sales. Tie those numbers to specific time frames (within six months, within two years, within 10 years, etc.).
• Be realistic — Having high expectations is great, but make sure that you establish targets that are reasonable and potentially achievable. If you're opening a fast-food restaurant, to say that you want to be bigger than McDonald's within six months is not realistic.
• Be aggressive — You can be realistic and still aim high. Don't set goals that are too easily achieved; also, set both short-term and long-term goals. If, after six months in business, you accomplish all of your goals, then what? Don't sell yourself short; if you want to be bigger than McDonald's within 20 years, go for it.
• Be consistent — Beware of inadvertently setting inconsistent goals. For example, a goal of growing fast enough to have three employees within two years might be inconsistent with a goal of earning a particular amount of money if the cost of adding the employees ends up temporarily reducing your income below the target level. There is nothing wrong with having both goals. Just be aware that the potential conflict exists, and establish priorities among your goals so that you'll know which ones are most important to you.

Getting Started.

Some people have a hard time setting goals because they just don't know where to start. If that applies to you, try this exercise. Start with an easily quantifiable goal. Start with the amount of money you'll need to earn in order to cover your living expenses since, no matter what, you'll need to make enough to make ends meet. Only when you have met that need can you begin to look to other goals.

In the Business Tools area is a living expenses form that you can use to set your first goal. It will help you establish what your family's financial needs are, so that you can set realistic business financial goals.