“What does ‘SMART’ stand for in business?”
It’s a question that many people have when they are looking to get started with their own company or improve the one they already have. In this post, we will answer this question and more! You’ll be able to see how to use these strategies as you build your business empire from the ground up. The SMART way!
The acronym ‘SMART’ in business stands for ‘Specific, Measurable, Attainable (or achievable), Realistic and Timely.’
- ‘Specific’ is the idea that you need to have a specific goal in mind.
- ‘Measurable’ means that it needs to be quantifiable, i.e., have goals with well-defined measurements such as ‘£30K net profit this year.’ or ‘we are going to get at least three ‘thumbs up’ reviews on TripAdvisor for our hotel.’
- ‘Attainable (or achievable)’ means that the goal should be something you can achieve with minimal effort and time.
- ‘Realistic’ is an important aspect of this acronym because it helps define what your limitations are, so when you are setting your goals, you should take into account the ‘realistic’ aspect.
- ‘Timely’ is an integral part of this acronym because it helps define when a goal needs to be accomplished rather than ‘someday’ or ‘at some point’; you will set a date and work towards it.
So, now that we have an understanding of what SMART stands for in business let’s explore how you can use this strategy. First, it is important to understand why these five components are so critical when setting goals.
It’s important that you set realistic goals. However, they should not be ones that are too easy to achieve because what is the point of setting a goal if it will be achieved with minimal effort anyways? On the other hand, don’t create impossible goals either. It needs to be challenging but something that is also within reach. You can still make a note of those ‘impossible goals,’ though – they will come in handy as your business smashes its smaller SMART targets.
Many businesses fail because they set unattainable goals. ‘We’re going to have a million dollars in revenue this year!’ Of course, this Is an attainable goal; however, if you conclude the goal-setting there without adding the ‘MART’ aspects of the goal, then it likely won’t be attainable, and there is a high probability the business will fail.
Setting goals is only effective if the goal can be accomplished in a timely manner
If you set ‘reaching £100K in revenue this year but don’t have a ‘timely’ plan in place, the goal will not be accomplished. So, once you set that specific, attainable, and realistic goal, you cannot miss out on the measurable or timely part.
The goal should look a little bit like this;
‘We will reach £100k in revenue this year; we will do this by achieving $10k per month in profits from sales of X product over 12 months’
Once you have laid out the entire goal like this, it becomes an actionable ‘SMART’ target. Setting several of these for your business will leave you with a solid business plan and set you well on your way to success!
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