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Swapnil Dalal

Goals setting - A must for an Entrepreneur


Incepted in 1952 by Mr.G.K.Pendharkar, Chairman, Vicco Laboratories (Vicco Ayurvedic products) company had the major goal to make the boons of Ayurveda available to every home within India and also in outside world. Today they are the makers of the best products of Ayurveda all over the world conquering Asia, Europe, America, Africa and Australia.

The successful businesses are based on goals, as it define the purpose of the business and help analyze necessary action plans.

For my business purpose, I visit entrepreneurs every day. My observation is that most of these entrepreneurs do not have clear goals. Unless you have clear goals about what and when to achieve, it is very difficult to reach there.


A goal can be defined as an expected state that a company endeavors to achieve.


There are objectives to be set, to reach a goal. An objective is a short-term target to accomplish, with a deadline.

If you are going for a business meeting, unless you fix the time and venue of the meeting, you will not be able to conduct the meeting.     In your business, where you spend your 60 percentt. time, it is critical to set goals, i.e. where and when you want to reach. Goals provide a sort of blueprint that can plot a course of action to be taken.

So, if you really want to be a successful, first set your business goals.


Goals Setting is the process of establishing short or long term, time-bound business objectives which result in smart achievements within stipulated time.


Do remember the SMART points when you set your business goal. Specific, Measurable, Achievable, Relevant, Time-bound.


Specific - First identify the resources and funds that you’ll need to invest in the business, then plan concise and concrete goals. Rather than saying “I want to earn more through my business this year”, specify the definite amount and say “I want to increase my revenues by ‘x’ percent by the end of this year”. If the goal is specific, there are better chances of achieving it.


Measurable -It should be quantified. Measure your goals in terms of specific numbers. Instead of saying “I want to make the whole India as my target market”, specify the exact cities you want to cover. Also, “By the end of two years, the total number of employees’ strength should be 2000” Or “Company revenue generation should be Rs.5 crores by year ending 2020”. These can be your measurable goals. So frame your goals in systematic way measuring it with exact numbers.


Achievable - Lets take an example of how we can set Achievable goals. If your company has a turnover of Rs. 10 crores and the growth rate is 30 percent per year, then, if all factors remain same, we can assume the minimum turnover of the company would be 30 percent more, that is Rs.13 crores.Lets say your desirable or dream goal isRs.20 crores for next year which is 100 percent more. If the desirable target goal for a short period is very aggressive, then most of the time, it is given up.An ideal way would be, to find a stretched target which is between the minimum and desirable. You can set it at Rs.16 crores which is 60 percent more. So Rs. 16 crores is the Achievable target.


Relevant - Keep your focus on your vision as to why you have formed the company. Your goal setting should be relevant to your company’s vision.


Time-bound - Keep your goals time-bound. Give reasonable deadlines to your goals. Divide the goal part by part into smaller timely achievements. Means the goals can be broken down into quarterly, monthly, weekly and daily objectives. It can be then measured over time. Follow a particular timetable. Your timetable influences your actions remarkably, focusing only on the activities which contribute to achieve the goals without wasting time.

Infosys Ltd., under the management, in the year 2015, asked its employees, their ideas and goals for the company, which ultimately aims to improve customer satisfaction and automatically the increase in revenue. To achieve that, a lot of transformation took place like change from old mainframe-based economy to a new era of cloud computing and cyber security. As a result of this, the company’s revenue has increased by 12 % per employee.


So by setting individuals performance goals, ideas can be built. Goals promote planning to achieve them. Plan strategically. Once your plans are ready, you will have an elaborated agenda to work upon. Then the company can delegate its work to its employees systematically. It definitely helps you take your business to the next level. Hence goals can be motivational. It is also important to review your goals periodically. This will keep you on track to reach your goal.


Key Performance Indicator :

There is one more method which can be used to measure how effectively a company is achieving its business objectives. It is Key Performance Indicator (KPI). A KPI can be a number or a ratio. When aligned systematically with goals, a KPI can demonstrate how well the company is performing. Many companies use KPIs at various levels to evaluate their success at reaching goals. High-level KPIs focus on the overall performance of the company, while low-level KPIs focus on processes in various departments such as sales, marketing or production, etc. It should also meet the SMART principles as well.


So this year make resolution to plan your goals with SMART points and move towards success.

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