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5 Tips for Setting SMART Goals in Your Business Plan

Give your business goals clarity, structure and guidelines.

Table of Contents

Goals and dreams have crucial differences. Dreams are wishes and fantasies; for example, many of us long to be rich, famous, more successful, happier and healthier. In contrast, goals put your dreams on a deadline and require actionable steps toward achievement. 

As with personal goals, you have a greater chance of achieving business goals when you work within a structure that sets you up for success. We’ll explore the SMART goals system and how you can apply this goal-achievement method to your business. 

What are SMART goals?

SMART is an acronym for specific, measurable, attainable, relevant and time-based. The SMART goals framework is a way to stay on target and achieve your goals more systematically. 

The process includes the following components:

• Making your goal specific
• Quantifying your goal 
• Ensuring your goal is attainable, reasonable and realistic
• Hitching your goal to a deadline

An example of a SMART goal is to add 600 Instagram followers within 90 days.

How to incorporate SMART goals into your business plan

Here’s a look at each SMART goal element, along with implementation examples you can apply to your business. 

1. Make goals specific.

A specific goal clearly states what will be achieved, by whom, where and when (and sometimes why).

For example, let’s say you’re a wedding planner. Here’s how a non-SMART goal compares with a SMART goal in specificity: 

• Non-SMART goal: Market my business in Toronto.
• SMART goal : Start a monthly networking group for women on event planning in Toronto. Set a monthly attendance goal of 20 women, with two attendees per month signing up for my “How to plan your wedding without stress” workshop.

2. Make goals measurable.

Measuring your goal means evaluating the results and the milestones you must hit on the way. When you measure, you assess if you’re on the right track to achieve your goal by asking these questions:

For example, let’s say your goal is to increase sales to $96,000 per year. To measure your goal, you could take the following actions:

• Set a milestone target of $8,000 in sales each month. 
• Create a process that focuses on achieving $8,000 per month (adding up to $96,000 for the year). 
• Check your sales totals monthly to evaluate if you’re reaching your goal. 

Measuring draws your focus, helping you boost your odds of achieving your goal. One good way to measure is to have a dashboard arranged by month. For example, you could use a chart like this:

3. Make goals attainable.

Ensure that your goals are achievable. If you believe you can reach the goal, you’ll be more likely to do so. Setting unreachable goals is a mistake because you’re setting yourself up for failure. 

Setting attainable goals is also essential for team goal setting and can boost employee engagement . If you set unrealistic goals for your team, your team members won’t fully engage in the project. They need to be fully on board for the project to succeed. Everyone on the team should share in the goal setting so they own the goal and know it’s attainable. 

4. Make goals relevant.

Goals tend to fall into two categories: short-term and long-term. It’s essential to understand how both goal types fit your organizational or personal vision, mission and purpose.

It’s tempting to set a goal because it’s easy or sounds great, only to find out later that it is of no long-term importance to what you want to achieve as an individual or an organization.

5. Make goals time-based.

Setting a deadline attaches a time frame to your goals. A deadline can be an excellent motivator. For example, let’s say you want to run a marathon in a year. A time-based goal would look something like this:

Set up a system to get yourself marathon-ready in a year.

• Run twice a week for three months, gradually increasing your distance.
• Run three times a week for three months, gradually increasing your distance.
• Be ready for a half-marathon by the six-month mark. 
• Increase your frequency and distance over the next six months. 
• Be ready for the marathon in 12 months. 

Time-based goals help you avoid procrastination because your process offers incentives as you meet smaller achievements along the way. 

Why use SMART goals?

SMART goals allow you to chart a course and stay organized when reaching personal or professional goals. You’re more likely to succeed because you’re less likely to get overwhelmed and abandon your goal entirely. 

In a business setting, particularly, SMART goals provide teams with clarity, structure and guidelines. Here are a few reasons to use SMART goals in business:

• Setting specific goals provides accountability. Accountability helps ensure goals are achieved. For example, if your goal involves reducing customer complaints by a specific amount, your customer service manager should be the point person for the initiative and have some accountability for the goal’s success.
• Measurable goals help you refine strategies. When your goals are measurable, you can gauge your success — or how close you came to it. Tracking metrics and key performance indicators allows you to compare the efficacy of various strategies and use only the most successful ones in the future.
• Achievable goals boost morale. When you set achievable goals, employee morale is raised and your team is less likely to experience employee burnout and frustration. Employees are set up for success, helping you build an empowered employee culture .
• Relevant goals propel company growth. Goals are useless if they don’t contribute to overall business success. Find goals that help move the organization forward. Relevant goals can include meeting financial metrics, like increased profitability, and more general goals, like reducing business expenses , limiting waste and increasing recycling.
• Time-based goals provide accountability and urgency. Goals with deadlines are extremely motivating. A timetable brings a goal to life. Achieving time-based goals allows you to set new goals after your initial goals are met.

With SMART goals, you and your team know what success entails and can measure it within a project’s framework. Everyone knows the steps they must take to achieve their goals. With ambiguity gone and a direction mapped, SMART goals set up your team for success.  

How to identify and reach your goals

It’s crucial to set a goal that matches your personal or professional vision. After you set the goal, focus on a process that makes your goal achievable. Here are some steps to follow.

1. Identify your goal.

If you are unable to set a SMART goal, it’s usually because you need to clarify exactly what you want to accomplish within a set period. It’s inadvisable to skip the process of SMART goal setting and just “go for it.” You have a greater chance of success when you analyze your goals and match them to your vision.

To save time, prevent disappointment and avoid costly mistakes, perform the following exercise when you implement SMART goals.

What are your goals? Writing down your goals helps to clarify your thinking. Can you stretch yourself both personally and professionally by setting three goals in each area.

2. Determine what is reasonable. 

Because SMART goals are attainable and time-based, you must ensure you set a reasonable goal. For example, if your goal is to increase sales by 30 percent in a year but you have been successful in increasing sales by only 10 percent a year in the past, consider extending the period to two years or reducing the amount to 15 percent for one year. That way, you’re improving on previous years without being overly ambitious.

Also, examine the resources at your disposal. In the previous example, a 30 percent increase in one year might be attainable if you just received a cash infusion that you can put toward marketing expenses. Or, maybe you’ve recently made an acquisition or added to your sales team , making a once-ambitious goal more reasonable.

3. Focus on essential metrics. 

When you’re ensuring that your goals are relevant, specific and measurable, carefully determine which metrics to use. For example, you may want a better digital marketing return on investment (ROI) from your social media marketing . In this case, follower counts and engagement levels (likes, shares, comments) are appropriate metrics. If you have a relatively small number of followers, you may want to focus on follower counts. But if you have many followers who don’t contribute to sales, you should focus on engagement metrics.

It’s not enough to mindlessly pursue your goal; you must keep the overall business benefit in mind. In the previous example, if you wanted to grow your followers on social media, you could buy followers and seemingly accomplish that goal. However, this would not help you boost your social media marketing ROI, because most of those people would not engage with your company or become paying customers.

4. Identify and implement tactics to meet your goal.

Once you’ve set a goal, develop a system to achieve it. For example, if you want to write a book in one year and you’re not an author, you may feel overwhelmed. 

Instead, try writing 250 words per day. Don’t agonize over what you are writing — just write. At that rate, if you write five days per week (260 days per year), you will have 65,000 words in a year, or approximately a 250-page paperback.

Business goals work the same way. Set the goal, and then find a system to help you reach it. For example, when setting a sales goal, you may want to focus on consistently achieving 10 quotes per month with a 50 percent success rate.

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How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.

Simple Business Plan Templates

By Joe Weller | April 2, 2020

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In this article, we’ve compiled a variety of simple business plan templates, all of which are free to download in PDF, Word, and Excel formats.

On this page, you’ll find a one-page business plan template , a simple business plan for startups , a small-business plan template , a business plan outline , and more. We also include a business plan sample and the main components of a business plan to help get you started.

Simple Business Plan Template

Download Simple Business Plan Template

Word  |  PDF

This simple business plan template lays out each element of a traditional business plan to assist you as you build your own, and it provides space to add financing information for startups seeking funding. You can use and customize this simple business plan template to fit the needs for organizations of any size.

One-Page Business Plan Template

Download One-Page Business Plan Template

Excel  |  Word  |  PDF  | Smartsheet

Use this one-page business plan to document your key ideas in an organized manner. The template can help you create a high-level view of your business plan, and it provides easy scannability for stakeholders. You can use this one-page plan as a reference to build a more detailed blueprint for your business. 

For additional single page plans, take a look at " One-Page Business Plan Templates with a Quick How-To Guide ."

Simple Fill-in-the-Blank Business Plan Template

Download Simple Fill-in-the-Blank Business Plan Template

Use this fill-in-the-blank business plan template to guide you as you build your business plan. Each section comes pre-filled with sample content, with space to add customized verbiage relevant to your product or service.

For additional free, downloadable resources, visit " Free Fill-In-the-Blank Business Plan Templates ."

Simple Business Plan for Startup

‌  Download Startup Business Plan Template — Word

This business plan template is designed with a startup business in mind and contains the essential elements needed to convey key product or service details to investors and stakeholders. Keep all your information organized with this template, which provides space to include an executive summary, a company overview, competitive analysis, a marketing strategy, financial data, and more. For additional resources, visit " Free Startup Business Plan Templates and Examples ."

Simple Small-Business Plan Template

Download Simple Small-Business Plan Template

This template walks you through each component of a small-business plan, including the company background, the introduction of the management team, market analysis, product or service offerings, a financial plan, and more. This template also comes with a built-in table of contents to keep your plan in order, and it can be customized to fit your requirements.

Lean Business Plan Template

Download Lean Business Plan Template

This lean business plan template is a stripped-down version of a traditional business plan that provides only the most essential aspects. Briefly outline your company and industry overview, along with the problem you are solving, as well as your unique value proposition, target market, and key performance metrics. There is also room to list out a timeline of key activities.

Simple Business Plan Outline Template

Download Simple Business Plan Outline Template

Use this simple business plan outline as a basis to create your own business plan. This template contains 11 sections, including a title page and a table of contents, which details what each section should cover in a traditional business plan. Simplify or expand this outline to create the foundation for a business plan that fits your business needs.

Simple Business Planning Template with Timeline

Download Simple Business Planning Template with Timeline

Excel  | Smartsheet

This template doubles as a project plan and timeline to track progress as you develop your business plan. This business planning template enables you to break down your work into phases and provides room to add key tasks and dates for each activity. Easily fill in the cells according to the start and end dates to create a visual timeline, as well as to ensure your plan stays on track.

Simple Business Plan Rubric Template

Download Simple Business Plan Rubric

Once you complete your business plan, use this business plan rubric template to assess and score each component of your plan. This rubric helps you identify elements of your plan that meet or exceed requirements and pinpoint areas where you need to improve or further elaborate. This template is an invaluable tool to ensure your business plan clearly defines your goals, objectives, and plan of action in order to gain buy-in from potential investors, stakeholders, and partners.

Basic Business Plan Sample

Download Basic Business Plan Sample

This business plan sample serves as an example of a basic business plan that contains all the traditional components. The sample provides a model of what a business plan might look like for a fictional food truck business. Reference this sample as you develop your own business plan.

For additional resources to help support your business planning efforts, check out “ Free Strategic Planning Templates .”

Main Components of a Business Plan

The elements you include in your business plan will depend on your product or service offerings, as well as the size and needs of your business. 

Below are the components of a standard business plan and details you should include in each section:

• Company name and contact information
• Website address
• The name of the company or individual viewing the presentation
• Table of Contents
• Company background and purpose
• Mission and vision statement
• Management team introduction
• Core product and service offerings
• Target customers and segments
• Marketing plan
• Competitive analysis
• Unique value proposition
• Financial plan (and requirements, if applicable)
• Business and industry overview
• Historical timeline of your business
• Offerings and the problem they solve
• Current alternatives
• Competitive advantage
• Market size
• Target market segment(s)
• Projected volume and value of sales compared to competitors
• Differentiation from competitors
• Pricing strategy
• Marketing channels
• Promotional plan
• Distribution methods
• Legal structure of your business
• Names of founders, owners, advisors, etc.
• Management team’s roles, relevant experience, and compensation plan
• Staffing requirements and training plans
• Physical location(s) of your business
• Additional physical requirements (e.g., warehouse, specialized equipment, facilities, etc.)
• Production workflow
• Raw materials and sourcing methods
• Projected income statement
• Projected cash flow statement
• Projected balance sheet
• Break-even analysis
• Charts and graphs
• Market research and competitive analysis
• Information about your industry
• Information about your offerings
• Samples of marketing materials
• Other supporting materials

Tips for Creating a Business Plan

It’s easy to feel overwhelmed at the thought of putting together a business plan. Below, you’ll find top tips to help simplify the process as you develop your own plan. 

• Use a business plan template (you can choose from the variety above), or refer to the previous section to create a standard outline for your plan.
• Modify your outline to reflect the requirements of your specific business. If you use a standard business plan outline, remove sections that aren’t relevant to you or aren’t necessary to run your business.
• Gather all the information you currently have about your business first, and then use that information to fill out each section in your plan outline.
• Use your resources and conduct additional research to fill in the remaining gaps. (Note: It isn’t necessary to fill out your plan in order, but the executive summary needs to be completed last, as it summarizes the key points in your plan.)
• Ensure your plan clearly communicates the relationship between your marketing, sales, and financial objectives.
• Provide details in your plan that illustrate your strategic plan of action, looking forward three to five years.
• Revisit your plan regularly as strategies and objectives evolve.
• What product or service are we offering?
• Who is the product or service for?
• What problem does our product or service offering solve?
• How will we get the product or service to our target customers?
• Why is our product or service better than the alternatives?
• How can we outperform our competitors?
• What is our unique value proposition?
• When will things get done, and who is responsible for doing them?
• If you need to obtain funding, how will you use the funding?
• When are payments due, and when do payments come in?
• What is the ultimate purpose of your business?
• When do you expect to be profitable?

To identify which type of business plan you should write, and for more helpful tips, take a look at our guide to writing a simple business plan .

Benefits of Using a Business Plan Template

Creating a business plan can be very time-consuming, especially if you aren’t sure where to begin. Finding the right template for your business needs can be beneficial for a variety of reasons. 

Using a business plan template — instead of creating your plan from scratch — can benefit you in the following ways:

• Enables you to immediately write down your thoughts and ideas in an organized manner
• Provides structure to help outline your plan
• Saves time and valuable resources
• Helps ensure you don’t miss essential details

Limitations of a Business Plan Template

A business plan template can be convenient, but it has its drawbacks — especially if you use a template that doesn’t fit the specific needs of your business.

Below are some limitations of using a business plan template:

• Each business is unique and needs a business plan that reflects that. A template may not fit your needs.
• A template may restrict collaboration with other team members on different aspects of the plan’s development (sales, marketing, and accounting teams).
• Multiple files containing different versions of the plan may be stored in more than one place.
• You still have to manually create charts and graphs to add to the plan to support your strategy.
• Updates to the plan, spreadsheets, and supporting documents have to be made in multiple places (all documents may not update in real time as changes are made).

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How to Set Smart Business Goals for Your Small Business

Colette Broomhead

8 min. read

Updated October 29, 2023

There’s nothing like the start of a new year to get us all goal setting like crazy. I don’t know about you, but I can count the number of New Year’s Resolutions that I’ve made and actually kept past January on the fingers of, well, one finger!

So why is it that we find goals so exciting to make, but so difficult to actually achieve?

Well, there are a number of reasons but mostly, it’s because the goals we set just aren’t smart .

• What is a SMART goal?

Yep, you’ve guessed it, this is another of those business acronyms that we all love so much. In a nutshell, your business goals should be:

Let’s break that down so you’re ready to set the smartest of SMART goals for your business this year.

• How to make your business goals specific

It’s easy to say things like “this year, I’m going to increase my revenue,” or “I’m going to build a following on Facebook.”

Perhaps you’re after more website traffic or you want to grow brand visibility. These are all worthy aspirations to have for your business, but they’re not specific.

How will you know when you’ve achieved them?

So let’s take another look, but this time our goals will be a little more defined:

• “I’m going to increase my revenue by 20 percent” would work, or “my revenue goal for 2020 is $100,000.”
• “I’m going to build a following of 5,000 likes on my Facebook page.”
• “I’m going to increase my website traffic to 5000 per month.”

See what a difference that makes?

Of course, plucking numbers from nowhere may seem more specific but is no more helpful unless the goals you choose are relevant to your current business performance and forecasts.

For example, if your current Facebook likes are at 1000 and your rate of growth is 50 new likes per month, then it would be feasible to set a goal of building your following to 5000 over the next six months. This stretches you, by exceeding your current rate of growth but isn’t an impossible target to achieve.

When your goals are specific, you know what success looks like and can measure it.

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• How to make your business goals measurable

Speaking of measuring it, there is no point in setting goals if you’re not able to track your progress and review your results. If you’ve made your targets specific, then you’ll already have given yourself some clear measurables, but the real skill comes in identifying the not so obvious metrics which help you to spot problem areas in your strategy and to improve them.

Let’s look at one of our examples again:

• Goal: Increase my website traffic to 5000 views per month
• Metric: Monthly views

So there we have a specific goal and a pretty obvious metric.

This metric will tell you if you have hit your goal or not, but you can also set smaller milestones which will allow you to track your progress—maybe you look at your website performance once a week so you get a sense of whether you’re heading in the right direction. This helps you to identify problems along the way so that you can tweak your strategy accordingly.

What else could you measure to help you monitor your progress?

How about monthly traffic by channel? That is to say, looking at the different places your traffic comes from, such as social media, search and so on.

By breaking down our metrics even further, we can see which channels are performing well and those which are falling short of our target and in need of some further development.

Another great advantage of setting measurable goals is that it keeps us focused on measuring the right things and stops us from becoming obsessed with those vanity metrics that we all love so much, but which often have very little to do with our actual business goals!

Lastly, when it comes to setting measurable goals, you need to know how to measure them. Make sure you have tools in place such as Google Analytics, which will allow you to view your data quickly and easily. The last thing you want is to waste time each month in manually measuring your results.

• How to make your business goals achievable

Your business goals and your business vision should be aligned, but they aren’t necessarily the same—especially when you’re just starting out.

Your dream may be to build a multi-million dollar company with global reach and impact; the reality for this year is probably going to be quite different.

Challenge yourself, but don’t set yourself up to fail by creating goals which are so out of reach, you have no hope of achieving them. Nothing is more demoralizing, and it will make you more likely to quit before you’ve even started.

How do you know what’s achievable? That can be tricky when your business is still new and you don’t have previous results to look back on. It’s not impossible though and your “aim” will get better with time.

If you don’t have past performance to use as a compass then use the information that you do have. Spend time researching your industry and doing a market analysis . You could also conduct a SWOT analysis which focuses on your current Strengths, Weaknesses, Opportunities, and Threats. The more research you can use to inform your decision making, the more accurate your goal setting is likely to be.

Stretch and comfort

This may sound spookily like the tagline for an underwear commercial, but I promise I’m still talking about your business goals!

You see, there are arguments to say that SMART goals don’t allow for stretching and challenging yourself and honestly, I disagree. Why not set your “comfort” goals (those which you feel pretty confident about) and alongside those you can also set yourself some stretch targets which may feel scarier but will push you to be innovative and focused.

• How to make your business goals relevant

Remember those vanity metrics that I mentioned earlier on? Well, those are the types of shiny object goals that can sometimes blind us to what’s really important in our business.

There is one very useful question you can ask yourself for each of your business goals in order to discover if it’s truly relevant or just something you think you “ought” to be going, something everyone else is doing or just something that will make you feel good about yourself.

That question is  “why?”

Let’s look again at that goal to increase Facebook likes.

So before it gets added to our official business goals, we’ll consider why we want to grow our Facebook following:

• “Because it shows my business is popular, right?”
• “Because XYZ have a trillion likes and I want to be more like them.”
• “Because I like spending time on Facebook!”

I could go on, but you see where I’m going with this. None of these reasons are relevant to your overall business purpose and vision, are they?

So, how about:

• “Because I want to increase my brand visibility on Facebook.”
• “My ideal clients mainly use Facebook so I want to increase my reach there.”
• “Community building is a key focus this year and Facebook is a great place to do that.”

Aha! Now these seem like more strategic and business-focused reasons to include increasing Facebook likes as a goal.

• How to make your business goals time-based

Well, this is the easy part (although still a part that gets missed all too often!). You know what goals you want to achieve, how you’re going to measure them and why they’re important to your business. Now, you just need to add a timescale.

Are you going to increase your Facebook likes by 5000 per month or per year?

As you can imagine, this is a pretty vital distinction to make! Not only does adding a timescale make your goals more specific and measurable, but it also helps when it comes to planning your time and creating your strategy.

Give your goals timescales, but also remember to set milestones too. This will allow you monitor your progress and review your strategy where necessary.

• Why SMART goals are just the start

So now you know how to create goals for your business that will get you off to the perfect start this year. Hurrah!

What happens next is up to you. You can do what we all do so often and let those goals gather dust for the rest of the year, lost and forgotten.

Or,  you can use them to shape your planning, to align all your business activities and manage your time. That’s what goals are meant for.

Your next step is to plan how  you will achieve them, to create lists of projects and tasks that will need to be completed and to break down your year into quarters, months, weeks—and yes, even days.

But that’s a whole different post!

Colette Broomhead is a startup strategist and helps people who want to quit their 9 to 5 and create an online business doing what they love. That's exactly what she did after a 13 year corporate career, working in marketing and CRM for a FTSE30 company.

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How to Create a SMART Plan: The Complete Guide

Successful planning is a critical aspect of any business. In a world that is continuously evolving, leaders and decision-makers need a strategy that can help them navigate the uncertainty. When it comes to setting goals and creating a roadmap for success, one planning methodology that has stood the test of time is the SMART Plan.

The SMART framework is not only a powerful tool for businesses but also a pragmatic approach for individuals who seek personal growth. It’s based on the principle that well-defined and thoroughly planned goals are more likely to be achieved. By implementing a SMART plan, you can transform your vision into a tangible reality.

The effectiveness of a plan lies in its ability to be easily understood, actionable, and adaptable in the face of changing circumstances.

This is where the SMART Plan comes into play. The acronym SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Each of these aspects ensures that the goal you set is not only clear and detailed but also realistic, aligned with your broader objectives, and bound by a timeline that motivates progress.

A SMART Plan doesn’t just streamline your objectives; it breathes life into them. By defining your goals in the SMART format, you’re creating a tangible pathway that leads directly to your desired outcomes. It’s a systematic approach that demystifies the planning process, leaving you with a plan that’s structured, feasible, and primed for execution.

But what does each aspect of the SMART framework entail, and how do they interconnect to create a comprehensive plan? Let’s delve into the anatomy of a SMART Plan.

The Anatomy of a SMART Plan

In this section, we’ll break down each component of the SMART acronym, highlighting how each plays an essential role in forming a robust plan. We’ll also discuss the importance of the interconnectivity of these elements.

• Specific: A specific goal is well-defined and clear. It leaves no room for ambiguity by addressing the who, what, where, when, why, and how of your goal.
• Measurable: A measurable goal allows you to track your progress. It sets clear criteria that you can use to evaluate your performance and make necessary adjustments.
• Achievable: An achievable goal is within your capacity to accomplish. While it should challenge you, it should also be realistic, taking into account your resources and constraints.
• Relevant: A relevant goal aligns with your broader objectives. It should be pertinent to your mission and capable of driving you closer to your ultimate aim.
• Time-bound: A time-bound goal has a clear timeline. This time constraint serves as a motivator, creating a sense of urgency that can spur you into action.

The Interconnectivity of Each Element in a SMART Plan

An effective SMART plan is more than just a collection of distinct elements. Each of the five components – Specific, Measurable, Achievable, Relevant, and Time-bound – are intrinsically linked, creating a powerful synergy that makes the whole greater than the sum of its parts.

Let’s delve deeper into how these elements interconnect and complement each other to form a robust, results-oriented plan.

The Synergy Between Specific and Measurable

How specificity enables measurability.

A goal must be specific to be measurable. By precisely defining what you want to achieve, you’re able to identify what metrics or key performance indicators (KPIs) should be used to measure progress and success.

Consider a goal to “Increase revenue”. Without specifying by how much or over what timeframe, it becomes difficult to measure progress effectively. However, by refining it to “Increase revenue by 15% over the next financial quarter”, you have created a clear metric (revenue) and a target (15% increase) to measure against.

Mutual Reinforcement

These two elements of a SMART plan reinforce each other. The more specific a goal, the easier it is to identify suitable metrics for measurement. Conversely, determining how a goal will be measured can help to fine-tune its specificity.

Achievable and Relevant: The Balance of Practicality and Purpose

Aligning feasibility with relevance.

Goals must be achievable and relevant. Achievability ensures that the goals set are within your means to accomplish given your resources and constraints. Relevance, on the other hand, ensures that the goals align with your broader objectives and purpose.

For instance, a small tech startup might set a goal to “Develop a new app feature by the end of the quarter”. This goal is achievable given the company’s skilled development team. However, if this new feature does not align with the company’s strategic focus or does not add value for its customers, it may not be a relevant goal.

Achieving Symbiosis

Relevance can influence achievability. A goal that’s highly relevant to your mission will likely be met with greater enthusiasm and commitment, enhancing its achievability. Conversely, ensuring a goal is achievable makes it more relevant because resources are not wasted on unattainable pursuits.

Time-Bound: The Framework for Other Elements

The time constraint in action.

Making a goal time-bound helps to clarify your intention and sets a deadline for your commitment. This element of the SMART plan is crucial as it provides a timeline for the specific, measurable, achievable, and relevant aspects of your goal.

For example, aiming to “Increase website traffic by 20%” becomes more focused when you add a time-bound element, such as “in the next two months”. This not only motivates action but also provides a clear timeframe for measuring progress.

Time-Bound as a Catalyst

The time-bound element acts as a catalyst for the other elements of a SMART goal. A specific and measurable goal is given urgency by being time-bound, while the achievability of a goal can often be adjusted by extending or reducing its timeline. Furthermore, ensuring a goal is time-bound can increase its relevance to immediate business objectives.

In conclusion, the elements of a SMART plan do not operate in isolation; they are interconnected, each one complementing and enhancing the others. Understanding this interconnectivity can significantly improve the effectiveness of your goal setting and planning process.

Building a SMART Plan: A Step-by-Step Guide

Having a detailed roadmap significantly increases the probability of reaching your desired destination. Here, we outline a step-by-step process that can guide you in constructing a SMART plan tailored to your objectives.

Setting Specific Goals

First and foremost, we start with specificity. Having a specific goal means you have a clear, well-defined target. This clarity not only motivates action but also facilitates decision-making and prioritization.

Actionable Steps to Define Precise, Clear Goals

• Identify your goal : Start with a broad goal, but make sure it’s well-aligned with your bigger vision or mission.
• Make it precise : What exactly do you want to achieve? Be as detailed as possible.
• Address the W’s : Who is involved in this goal? What exactly are you trying to achieve? Where is this goal to be achieved? Why is this goal important?

Hands-on Example of How to Make a Goal Specific

Let’s consider a startup that wants to increase its customer base. Instead of having a vague goal like “Get more customers,” a specific goal could be: “Increase the number of new monthly sign-ups for our software by 20% by targeting small businesses in the healthcare sector in the United States.”

Ensuring Your Goals are Measurable

The next step is to make sure your goals are measurable. By setting measurable goals, you can track your progress and stay motivated. It also helps you to identify when adjustments may be necessary.

Concrete Methods to Determine Measurable Metrics for Goals

• Identify your key performance indicators (KPIs) : KPIs are quantifiable measurements used to gauge your progress towards your goal. These could be in the form of percentages, numbers, or ratios.
• Set benchmarks : Determine what success looks like for your goal. What are the milestones you hope to reach along the way?
• Implement tracking mechanisms : Decide on the tools or methods you’ll use to monitor progress and measure outcomes.

Example of Transforming an Immeasurable Goal into a Measurable One

A business goal such as “Improve customer service” can be transformed into a measurable goal like “Decrease customer complaint emails by 15% and increase positive customer reviews on our website by 25% over the next quarter.”

Crafting Achievable Goals

While setting ambitious goals is commendable, ensuring those goals are achievable is crucial. Achievable goals consider the resources and constraints and strike a balance between being challenging and realistic.

Practical Tips to Assess Feasibility and Set Achievable Goals

• Analyze your capabilities and resources : Look at what you have at your disposal. This includes manpower, financial resources, time, and other assets.
• Consider your constraints : What might stand in your way? This could be anything from budget limitations to market conditions or regulatory hurdles.
• Strike a balance : The goal should be ambitious enough to push you or your team but realistic enough that it’s achievable with hard work and diligence.

An Example of Shaping a Lofty Goal into an Achievable One

A startup might initially set a goal to “Become the market leader in our industry in the next year.” Given the competitive nature of most industries and limited resources, this might not be realistic. Instead, a more achievable goal could be: “Break into the top 10% of businesses in our industry in terms of customer satisfaction and product quality within the next two years.”

Aligning with Relevance

Your goals should be relevant and align with your broader business objectives. They should have a clear purpose and fit into your strategic plan.

Steps to Ensure Goals are Aligned with Broader Objectives

• Evaluate alignment : How does each goal contribute to your larger objectives or the overall mission of your organization?
• Analyze impact : What will be the short-term and long-term impacts of achieving this goal on your business?
• Prioritize : Rank your goals based on their relevance to your overall strategic objectives. This will help in effective resource allocation.

An Example of Adjusting a Goal to Fit with Broader Business Objectives

An online retail store might have an initial goal to “Increase website traffic by 50%.” While this might seem like a valid goal, if the broader objective of the business is to increase revenue, a more relevant goal would be to “Increase the conversion rate of website visitors by 30%.”

Making Goals Time-Bound

Setting a deadline not only creates a sense of urgency but also provides a timeframe for measuring progress. It motivates the team to move forward and gives a clear endpoint to work towards.

Practical Advice for Setting Realistic, Motivating Timelines

• Define your timeline : Decide when you want to achieve your goal. Be specific; instead of saying “in the future,” set a precise date.
• Consider your resources : Your timeline should be aggressive enough to motivate action but realistic enough to be achievable with your available resources.
• Set milestones : Break your goal down into smaller, manageable chunks, each with its own deadline. This makes a larger goal more attainable and allows you to measure progress along the way.

An Example of a Goal With and Without a Time-Bound Element

A goal such as “Increase sales” lacks a time-bound element. By incorporating a deadline into the goal, it becomes: “Increase sales by 20% in the next six months.”

Incorporating a SMART Plan into Daily Operations

Successfully creating a SMART plan is just the initial step in your journey to achieve your objectives. The real challenge often lies in effectively integrating this plan into your day-to-day operations. This step is critical in bridging the gap between strategy and execution. In this section, we will explore practical ways to integrate your SMART plan into daily operations and maintain momentum towards achieving your goals.

The Role of Communication in Operationalizing the SMART Plan

Open, frequent, and clear communication plays an integral role in incorporating a SMART plan into your daily operations. Everyone involved should understand the SMART plan in its entirety, including the specific roles they play and how they contribute to the larger objective.

How to Effectively Communicate Your SMART Plan

• Hold a kickoff meeting : Gather all team members for a meeting where you present the SMART plan. Use this opportunity to explain each goal, why it’s important, and how you intend to achieve it.
• Provide written documentation : Following the meeting, provide everyone with a written version of the SMART plan for their reference.
• Encourage questions : Foster an environment where team members feel comfortable asking questions or expressing concerns about the plan.
• Regular updates : Keep everyone updated on the progress towards achieving the goals. This keeps the SMART plan at the forefront of everyone’s mind and fosters a sense of collective responsibility.

Integrating SMART Goals into Individual Workflows

Each member of the team should understand how their individual tasks and responsibilities align with the overall SMART plan. This enables them to see the value of their work and motivates them to contribute their best efforts.

Steps to Integrate SMART Goals into Individual Workflows

• Break down the goals : Break each SMART goal into smaller, actionable tasks that can be incorporated into individual workflows.
• Assign tasks : Delegate each task to a specific team member. Make sure they understand their task and how it contributes to the larger goal.
• Set individual targets : Create mini SMART goals for each team member that align with the larger SMART plan. This helps to keep everyone focused and driven.

Role of Regular Check-Ins and Progress Assessments

Regular check-ins and progress assessments are key to keeping your SMART plan on track. They enable you to identify any hurdles early, make necessary adjustments, and celebrate progress.

Implementing Effective Check-Ins and Progress Assessments

• Schedule regular check-ins : Determine a suitable frequency for check-ins. This could be weekly, bi-weekly, or monthly, depending on the nature of your goals.
• Set clear agendas : Each check-in should have a clear agenda. Discuss progress, address challenges, and recognize achievements.
• Use a tracking system : Use a goal tracking system or project management tool to monitor progress. This provides a visual representation of progress and can be a powerful motivator.
• Adapt and adjust : Use these meetings to adapt and adjust your SMART plan if necessary. Flexibility is key to overcoming unforeseen challenges or changes.

By incorporating these practices, you can ensure that your SMART plan becomes a part of your daily operations, guiding your actions and decisions towards achieving your desired objectives. Remember, a plan is only as good as its execution, so take the time to integrate your SMART plan effectively into your day-to-day business operations.

Best Practices and Common Mistakes in SMART Planning

Every methodology has its pitfalls and SMART planning is no exception. Here, we will cover a few best practices to follow, as well as common mistakes to avoid , to ensure your SMART planning is as effective as possible.

Quick-fire Dos and Don’ts for SMART Planning

• Involve your team : Encourage your team to participate in the goal-setting process. This ensures buy-in and makes them feel invested in the outcome.
• Write your goals down : Documenting your goals provides a tangible reminder of what you’re aiming for and can be a source of motivation.
• Be flexible : Remember that change is a part of business. Be prepared to reassess and revise your goals as circumstances evolve.

Don’t:

• Set too many goals at once : Focus on a few key objectives at a time to prevent spreading resources too thin.
• Ignore feedback : Feedback from your team can provide valuable insights. Take it into account when setting or revising goals.
• Forget to celebrate small wins : Recognizing progress, no matter how small, boosts morale and keeps motivation high.

Discussion of Potential Pitfalls and How to Avoid Them

In SMART planning , like any planning process, potential pitfalls can hinder progress and compromise the effectiveness of your goals. Acknowledging these pitfalls and understanding how to avoid them can significantly increase the success rate of your SMART plan. Let’s delve into some common traps and strategies for circumventing them.

Overemphasis on Perfection

One of the common mistakes people make during the planning process is striving for absolute perfection. While meticulousness is an important aspect of planning, an excessive pursuit of perfection can result in “analysis paralysis,” where the fear of making mistakes inhibits progress and decision-making.

Avoiding the Perfection Trap

• Prioritize Progress Over Perfection : Focus on making progress towards your goals, rather than waiting for the perfect plan or the perfect moment.
• Learn from Mistakes : Recognize that mistakes are part of the learning process. Use them as stepping stones, rather than stumbling blocks.

Lack of Flexibility

While a SMART plan provides structure and direction, rigidity can be counterproductive. Markets fluctuate, customer demands shift, and new opportunities arise. If you’re too fixated on a rigid plan, you may miss out on these opportunities or fail to adapt to changing circumstances.

Fostering Flexibility in Your SMART Plan

• Regular Reviews : Periodically revisit your SMART plan to ensure it’s still relevant in the current context.
• Build in Buffer Times : Allow room for unexpected changes or delays in your timeline. This buffer can provide the flexibility needed when things don’t go as planned.

Setting Unattainable Goals

Goals that are too ambitious can overwhelm your team and may lead to demotivation and burnout. It’s important to push your limits, but the line between challenging and impossible can sometimes be blurred.

Creating Achievable Goals

• Reality Check : Be realistic about what can be achieved considering your resources, constraints, and market conditions.
• Break It Down : Splitting a larger goal into smaller, manageable parts can make it seem more achievable and less daunting.

Misalignment with Overall Business Objectives

As discussed earlier, SMART goals should be relevant to your overall business objectives. However, in the hustle and bustle of daily operations, it’s easy to lose sight of this alignment.

Ensuring Alignment with Business Objectives

• Frequent Cross-checks : Regularly cross-check your SMART goals against your business strategy to ensure alignment.
• Encourage Team Understanding : Make sure your team understands the strategic business objectives and how their individual goals contribute to these.

By being aware of these potential pitfalls and knowing how to navigate around them, you can make your SMART planning process more effective and increase your chances of achieving your goals. Remember, every plan will face its challenges, but it’s how you respond and adapt that determines your success.

Leveraging Tools for SMART Planning

In the digital era, numerous tools and platforms can assist in creating, managing, and tracking the progress of your SMART plan. These tools can simplify the process, improve collaboration, and offer valuable insights through analytics and reporting features.

For project management and goal tracking, tools like Trello, Asana, and Monday.com can be highly beneficial. These platforms allow you to create tasks, assign responsibilities, set deadlines, and track progress in real-time.

For document management and collaborative planning, Google Workspace offers a range of applications like Docs, Sheets, and Slides, facilitating real-time collaboration and easy sharing of your SMART plans.

Specific goal-setting software like Betterworks and Lattice is designed to align, track, and manage your goals effectively. These tools are particularly useful in larger organizations where aligning individual goals with company objectives can be complex.

Wrapping Up

The SMART plan framework presents an efficient way to set goals that are clear, actionable, and attainable. By following the step-by-step guide provided, you can create a SMART plan that aligns with your broader objectives and sets you on a path to success.

However, remember that goal setting is not a one-time event but an ongoing process. It requires constant monitoring, evaluation, and adjustments. With the right approach, a SMART plan can become a powerful tool for success, turning your business visions into achievable realities.

Always keep in mind the key aspects of a SMART plan – Specific, Measurable, Achievable, Relevant, and Time-bound – and you will have a solid foundation upon which to build your success. Happy Planning!

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