As a small business owner, you're probably trying to grow your company. And if you want to be successful, it's important that you don't lose sight of your vision and goals along the way.

If you focus too much on short-term wins while ignoring long-term ones, then there's no way that your business will grow or thrive.

In fact, setting realistic business goals is one of the first things that many entrepreneurs do when they start their companies, here's why:

Setting realistic business goals can help you work toward your vision

Setting realistic business goals is a great way to keep yourself on track and working toward your vision. This can be especially helpful if you're trying to build a new business or get your existing business off the ground.

Setting realistic business goals takes some thought, but it's worth it! You want your goals to be measurable so that you know when they've been achieved and how far along you are in achieving them. The best way to do this is by breaking up each goal into smaller tasks that are easier for you (and others) track.

Example: "I want 1,000 new customers by December 31st." This may seem like an impossible task at first glance--but breaking down this objective into smaller chunks makes all of those little steps add up quickly!

Now instead of focusing solely on getting 1,000 new customers by December 31st (which could take months), now we can focus on getting 50 per month starting now through September 30th (about 6 months). We then just need 20 per month after September 30th until December 31st - still not too bad right?

Keeps the business motivated

realistic business goals

Once you've set your goals, it's important to keep yourself motivated. Motivation is a key factor in achieving goals and can come from either internal or external sources.

Internal motivation comes from within you and includes factors such as:

  • Your personal values and beliefs
  • Your personality traits (e.g., how outgoing you are)

External sources of motivation include:

  • Rewards for reaching certain milestones (e.g., a trip abroad)

Helps to measure progress

You can't really measure your progress if you don't have goals. For example, if the goal is to "get more customers," it's not very clear how many customers are needed and what they should look like. Instead of saying "we want more customers," think about what kind of customer would be good for your business (e.g., high-spending or low-spending).

Then set a number that makes sense for this type of customer--for example, 5 new customers with an average spend of $100 per month by June 30th.

The key here is being specific about what kind of customer and how much money they will spend on average each month--this gives us something concrete to measure against when we're evaluating our success at reaching this goal!

Avoids unnecessary stress and burnout

Setting realistic business goals is an important part of being a successful entrepreneur. It helps you avoid unnecessary stress and burnout, which can lead to health problems, poor decision-making and poor customer service.

When your business goals are realistic, they're easier to achieve

When your business goals are realistic, they're easier to achieve. You can avoid unnecessary stress and burnout by setting realistic goals--and when you do achieve them, that feeling of accomplishment will motivate you even more.

It's important to measure progress along the way so that you know when a goal has been met and celebrate accordingly!

If you set unrealistic business goals, you'll eventually become bored and uninspired

If you don't set realistic business goals, you'll eventually become bored and uninspired. The reason for this is simple: if your goals are too easy to achieve, there's no sense of accomplishment in reaching them.

A great example of this is when people work out regularly but never change their body composition or get stronger--they lose motivation because they see no progress.

On the other hand, if you set unrealistic business goals that are too difficult to achieve (like trying to make $1 million dollars overnight), then failure will inevitably follow as well as feelings of disappointment and frustration which can lead to giving up altogether on your dreams!

Once you reach a goal, celebrate by setting another one that's even bigger and better

After you reach a goal, celebrate by setting another one that's even bigger and better! This will keep you motivated and focused on what's important. It also helps to stay enthusiastic about the work that needs to be done in order for your business to succeed.

If there are times when it seems like no matter how hard we try or how much effort we put into things, nothing changes--that's OK too!

It just means it might be time for some fresh perspective on things or maybe even some different approaches altogether (like hiring an accountant). This can make all the difference in helping us find success in our businesses without getting discouraged along the way.

Factors to Consider When Setting Realistic Business Goals

When setting realistic business goals, you need to consider the current state of your business.

The market and competition are important factors in this stage. For example, if you are starting a new company in an industry where there are already many established players, it will be more difficult for you to gain market share than if there were no competitors at all.

Another factor is available resources: Are there enough employees with the right skills? Do they have access to adequate equipment and technology? Asking yourself these questions can help determine whether or not it's possible for them to achieve their goal within the timeframe specified by their boss (or themselves).

Finally, understanding potential risks and obstacles along with considering how much time they'll need before reaching their goal will ensure that they don't set unrealistic expectations for themselves--and everyone else involved!

The Bottom Line

Setting goals is an important part of running a business, but it's also crucial to make sure that they're realistic. If you set too many goals or make them too lofty, you'll run the risk of setting yourself up for failure--and then feeling discouraged as a result.