January 6, 2020
“Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success.” —Pablo Picasso
With the start of the new year and decade, most of us are thinking about what we want to accomplish. While it is good to know what you want, it is more likely that you will achieve the desire results if you have a plan to get there.
Successful businesspeople plan for their success. They are deliberate about what they want and how to get there. They set SMART goals which is an acronym for goals that are:
- Specific: Clearly defined goals that are precise and detailed.
- Measurable: Quantitative goals that include exact financial numbers, amounts, and milestones.
- Attainable: Achievable goals that can be accomplished within the constraints of factors including, but not limited to time, money, the environment, economy, and market trends, as well as your learned skills and innate abilities.
- Relevant: Qualitative goals that are in alignment with your vision and purpose. These goals should move you forward towards reaching what you truly desire.
- Time-sensitive: Specific deadlines for each step towards reaching your goals.
Having SMART goals should help you attain what you are focused on doing. An example of a SMART goal is to earn $1 million in additional profits by expanding our reach in the Tri-state region (Pennsylvania, New Jersey and New York) in the industrial construction industry by attaining 50 new clients by December 31, 2025. This goal is much clearer than simply saying: “I want to make more money in the construction niche over the next five years.”
Focus on the Right Goals
Note that the word “profit” is bolded in the above paragraph. I did this to emphasize a point. Business owners tend to focus on generating more revenue than profit. While this is sensible, it doesn’t mean that you will make more money. In fact, you could make less money.
Think about how revenue is generated – you can either increase sales from new customers or transactions from existing customers. There are many ways to do this including investing more money in marketing, expanding your sales force, increasing production, decreasing costs, discounting prices, etc. The bottom line is that these tactics may help to increase revenue or not. If you spend too much to implement any of these tactics or make the wrong decision, the increase in revenue may not cover the increase in costs resulting in less profits.
Our goal for 2020 is to remain focused on you and dedicated to your success. Please feel free to call anyone on our team to discuss your 2020 goals at 610-828-1900 (PA) or 732-341-3893 (NJ) with questions. You can also contact me at
[email protected]
to help you have your best year ever.
Martin C. McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company, PC
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
