As we begin the new year with our bright shiny new calendars, we can’t help but want to dream BIG and set new business goals that we VOW we’ll crush!
But what happened last year? Did you crush your goals? Did you come close? Or did you overshoot last year?
Today, I want to talk about setting realistic expectations and projections for the year ahead.
Many people get started in business, and set big lofty business goals, but fail to achieve those goals successfully. They mean well, but they just don’t know enough about “real business” – the actions needed and the NEW habits one has to create in the attempts to achieve their goals.
I see it all the time. People are ready to go out on their own, put their stake in the ground, and go after their dreams. But often, they set themselves up for failure…
They tend to set what I lovingly refer to as “ass goals” – yep – that’s what I said – “ass goals”.
Let me explain…
Let’s say you’ve been in business for 2 years. Year one you had $6,000 in sales – Year two you had $12,000 in sales. But you’re NOT happy with your progress. You may think – “I should have been able to do $25,000 this year (or maybe even more).”
Do you realize however that THAT is a 100% increase??
Then year three – instead of setting a goal that’s in alignment with your average increase in sales – you set a goal to bill $75,000.
This my friend is what I refer to lovingly as an “ass goal”. It’s a number you pluck out of thin air – or (hehe) out of your butt!
Now for some, this won’t sit well. But hear me out for a second.
The ONLY possible way you can take your biz from 12K to 75K in one year is if you have:
- A system and a process that brings clients to you easily and effortlessly.
- No other responsibilities at home, you know – like KIDS! Or aging parents perhaps?
- You have a surplus of $$ to invest in the business and its start up.
- Someone that handles all the bills – and YOU are not required to bring in an actual “income”, so that you can REINVEST your income back INTO the business, for longer term growth
- A complete shift in one’s actions, habits, and identity
As you can see, I’m not telling you it’s 100% impossible. But you will NEVER get there if you don’t change!
You may need to change your niche.
You may need to change your pricing.
You may need to shift your profit margins.
Perhaps its time to invest in hiring a mentor.
The key here is that YOU MUST CHANGE, your vision of yourself must CHANGE, and your daily habits must change.
The goals you set for the new year will require you doing new things.
Are you prepared to do that?
When people set “ass goals” – they have very little chance of achieving them. You then blame yourself and compare yourself to everyone around you – NOT realizing what it really takes. You compare your life to someone else’s “highlight reel”.
So – when you PLAN for your year – review the TRUE business statistics that I pulled from a business firm below.
One of the biggest reasons people don’t plan properly, is because they have unrealistic expectations.
This is what projected growth SHOULD look like:
- Less than 15% annually – Although many may consider this rate rather unspectacular, a firm will double its size in five years while growing at a 15% rate.
- 15 – 25% annually – Rapid growth
- 25 – 50% annually – Very rapid growth
- 50 – 100% annually – Hypergrowth
- Greater than 100% annually – Light-speed growth
Although rapid growth and hypergrowth rates are very appealing to the always-optimistic entrepreneur, it’s good to note that such growth rates can create more problems for an personal service business entrepreneurial firm. Rapid growth can make it difficult to keep up with the infrastructure needed to support that growth and a business can actually choke on it’s own growth.
We have certainly been in that position where we grew faster than our team.
Your assignment this week:
How will you use this information to set a realistic projection this year?? What is your income/financial goal this year?
Are you on target? Do you have a marketing process to get there?
Hopefully you’ll have a broader look at the way you set your business goals this new year and how you plan to achieve them!!
It’s not always easy to build a service-based business. Many see it as an intangible, but you can build a profitable and flourishing concierge business!