A Beginner’s Guide to Setting Financial Goals for Your Business (and Actually Sticking to Them!)
Hey there, business owner! 🎉
Whether you’re just starting out or a few years in, setting financial goals can feel like one of those “I’ll do it later” tasks. But here’s the thing: financial goals are so much more than just numbers on a page. They give you direction, help you measure your progress, and (most importantly) keep you motivated.
If the thought of financial goal-setting makes your head spin, don’t worry—I’ve got you covered. Let’s break down the steps to set financial goals that are clear, manageable, and totally doable, even if you’re a beginner!
Why Set Financial Goals for Your Business?
Before we dive into the “how,” let’s talk about the “why.” Financial goals are like a GPS for your business. They show you where you’re headed and help you make smart decisions along the way. Imagine knowing exactly what your revenue needs to be each month to reach your annual goal or being able to save for that big expansion you’ve been dreaming about. It’s all possible with the right goals in place.
Step 1: Define Your Why—What Do You Want to Achieve?
Think about your ultimate business dreams. Do you want to hit a certain revenue target? Save up for a new office space? Pay off business debts or just have a steady, reliable income? Write these down and keep them somewhere visible because they’re the reasons behind your goals.
Examples:
“I want to make £50,000 in revenue this year.”
“I want to save up for a new website redesign by next summer.”
“I want to put aside £200 each month for taxes so I’m prepared.”
Step 2: Set Clear, Achievable Goals (Make them SMART!)
SMART goals are your best friend when it comes to setting financial targets. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound—basically, making sure your goals are clear and realistic.
Example of a SMART Goal:
Instead of: “I want to make more money this year.”
Try: “I want to increase my monthly revenue by 20% over the next 12 months by getting 3 new clients each quarter.”
See the difference? SMART goals give you a clear path to follow.
Step 3: Break Down Your Big Goals into Bite-Size Steps
Big goals can feel overwhelming, so break them down into smaller steps. Let’s say you want to save £1,200 by the end of the year for a website redesign. Divide that goal by 12 months, and you’ll need to save £100 each month. Breaking it down makes it feel achievable and keeps you motivated!
How to Break It Down:
Annual Goal: Save £1,200 for a website redesign.
Monthly Target: Save £100 each month.
Weekly Target: Set aside £25 each week (maybe skip a few coffees or put aside a small percentage of your sales).
Step 4: Track Your Progress Regularly
Setting goals is great, but tracking them is where the magic happens! Find a simple way to monitor your progress—whether it’s a spreadsheet, a budgeting app, or a cute notebook where you jot down your numbers each month. Seeing your progress in black and white keeps you motivated and helps you adjust if needed.
Ideas for Tracking:
Budgeting Apps: Mint, YNAB, or Wave are great for freelancers and small businesses.
Simple Spreadsheet: Track income, expenses, and your progress toward each goal.
Goal Planner: A notebook or planner dedicated to tracking your financial milestones.
Step 5: Celebrate Small Wins Along the Way
Reaching financial goals doesn’t happen overnight, so make sure to celebrate every little step forward! Maybe you saved your first £100 for that redesign or landed a new client. Take a moment to treat yourself (hello, coffee break!) and recognize the progress you’re making.
Small Wins to Celebrate:
Hitting a monthly savings goal.
Securing a new client or contract.
Paying off a business expense you’ve been chipping away at.
Step 6: Review and Adjust as Needed
Life happens, and sometimes our goals need a little tweaking. Maybe you had a slow month, or a new expense popped up. Don’t stress! Review your goals every few months, see where you’re at, and adjust if needed. Goals are there to guide you, not stress you out.
Quick Recap: Your Simple Guide to Financial Goals
Define Your Why – What do you want to achieve?
Set SMART Goals – Make them specific, measurable, and time-bound.
Break It Down – Turn big goals into monthly or weekly targets.
Track Your Progress – Use a spreadsheet, app, or planner.
Celebrate Small Wins – Recognize every step forward.
Review and Adjust – Check in and tweak as needed.
Start Small and Stay Consistent
Financial goals might feel big and intimidating, but starting small and sticking with it can lead to huge progress. Remember, you don’t have to hit every target perfectly to be successful. The important thing is to have goals that keep you moving forward.
So go ahead, grab a notebook (or open up that budgeting app) and start setting some goals. With a little consistency and a lot of enthusiasm, you’ll be amazed at what you can achieve.
Happy goal-setting! 🎉