Goal setting for small business success: EBI Business Improvement Specialists
The power of pairing SMART and Stretch Goals
As we near the end of the financial year, it’s the perfect time to take stock of your business goals. How did last year unfold? Did you hit your targets, or were your efforts scattered without clear objectives? The advice to “set goals” is ubiquitous for a reason – it’s a proven path to success. However, the right approach to goal setting can make or break your business.
Effective goal setting is a cornerstone of strong leadership. Research shows that specific, challenging goals outperform vague ones like “do your best.” Yet, many businesses – large and small – struggle to reach their potential, often drifting aimlessly or heading toward irrelevance. The root cause often lies in poor goal selection and a lack of strategic discipline to achieve them.
Director & Partner
The SMART Goals framework is a widely popular tool, breaking down objectives into measurable, time-bound steps. It’s great for clarity and focus. But, for small businesses, aiming for substantial growth or big, audacious achievements (think BHAG, or Big Hairy Audacious Goal), SMART goals can fall short. They work well in stable environments but tend to limit creativity and ignore the emotional drive required to tackle ambitious targets. Moreover, they sometimes focus on minor tasks rather than the critical challenges that lead to business growth.
That’s where Stretch Goals come in. These are the game-changing, sometimes intimidating targets that push you to rethink strategies and break barriers. They create energy, inspire new ways of thinking, and force you to reimagine your business future. But without a roadmap, Stretch Goals can overwhelm and demoralize your team.
The secret to success? Pairing SMART and Stretch Goals. Start with your BHAG – your grand vision – and break it down into achievable, realistic steps. What can you do this quarter, this month, this week, and today to move toward that big vision? Combining the ambition of Stretch Goals with the structure of SMART goals is the key to turning dreams into reality.
For small businesses, the right balance of bold vision and actionable steps can propel you toward greater success. It’s all about leading your team with clear, compelling objectives while maintaining the discipline to execute every day. Don’t just aim high—take action to get there.
