In a business plan, it is important to
clearly define what the business is aiming to accomplish. Although some
people debate the differences between goals and objectives, most business
owners should focus not on the differences, but rather on clearly
identifying and hitting their business target. For this video I will use the
terms goals and objectives interchangeably. The way we can define
goals is simple. They should be SMART – Specific, Measurable, Achievable, Relevant and Time-bound. Here’s an example: By December 2018 Sunshine farms will grow 2 acres of garlic and sell 12,000 pounds of product through direct retail
at farmer’s markets, earning a gross income of $48,000, and a net income of
$18,000. What makes a goal written in this way so useful? it sets clear
objectives and will be easy to determine. if it has been met, it will also help the
business owners stay on target should they need to refocus before the deadline.
Notice that it is specific enough to be able to determine easily whether it has
been met. It is measurable because it includes numbered amounts of time, money, yield, and land. It is achievable because it is based on a realistic budget model.
It is relevant because Sunshine Farm cultivates vegetables and herbs for
local customers. This activity is in line with the farms mission statement. It is
time-bound because there’s a set deadline to meet the goal by. Setting
SMART goals is the best way to set the course for the direction of your
business. For more information on writing SMART goals please see additional resources
on our website. In the words of Greg S. Reid, “A dream written down with a date
becomes a goal. A goal broken down into steps becomes a plan. A plan backed by
action makes your dreams come true.