To grow your business there’s a benefit in setting goals, but there are different types of goals you need to know all about.
The two types of business goals are…
- Feel good goals
- Breakthrough goals
Feel good goals are ones that require little if any personal change.
They are the most common goals people set and are ideal when you’re happy with your current life and with your relationship to your business.
Breakthrough goals are ones that don’t just change your business, they transform it and also change your whole relationship to it, your emotional state of mind, and the quality of your personal/family life.
Breakthrough goals may sound more attractive, but the personal changes needed to achieve them and the required commitment is quite underestimated.
They are worth the effort though! Because once you hit a breakthrough goal, your life is transformed for years, if not permanently.
Which type of goal is best for your business right now?
These few questions will help you to decide…
- What level of happiness do you feel now in your life, on a scale of 1 to 10, how would you rate it – with 10 being totally awesome?
- What level of stress do you feel with your business, on a scale of 1 to 10 with 10 being totally stressed and ready to just give your business to anyone who will take it over?
- If you and/or your business needs a breakthrough – are you prepared to “do whatever it takes” – to achieve that?
- Will you spend money to achieve it if necessary?
- Would you be willing to commit 5 hours per week for months, to work on your business, to learn – long before you will earn?
These questions are usually relevant to achieve a breakthrough goal.
Your thinking got your business to where you are now, but new thinking is required to achieve a breakthrough, with totally fresh, new ideas and actions.
The process of a breakthrough goal looks like this, in terms of time and financial reward…
The net profit may not jump and increase steadily. In fact, it rarely does.
Often it starts slowly, but accelerates months later – once the “foundations” are in place.
The most common way to achieve a business breakthrough goal is to increase the Net Profit Margin.
That means to increase net profit by optimising dozens of areas of your business, and that doesn’t require an increase in leads.
If your business had an extra $100,000 to $300,000 more net profit – without it coming from more leads, it would flood your bank account with cash.
If you saw all that increase as cash in the bank, you could pay yourself more. Wouldn’t that be great?
You could hire an extra person, to delegate your work to, to free up hours or days of your time.
You would have surplus cash to spend on marketing, without worrying about it having to work instantly.
Can you see how increasing net profit and especially margin solves a LOT of stressful situations or growth limitations in a business?
Net profit rarely increases consistently or constantly, and may even go down for a month or two, before the J-curve of rapid profit increase kicks in fast and hard.
One or many “feel good” goals and actions are needed to achieve a breakthrough goal.
Examples of Feel Good Goals
A “feel good” goal is like achieving outcomes such as…
- Increasing leads from a marketing strategy by 20% in a month
- Bringing in $5,000 more cash owed from late paying customers this week
- Finding a good employee this month to hire that your business needs
- Getting a big job completed on time or before the end of the week
These are all worthwhile goals that will help you to feel good.
A breakthrough goal nearly always needs an external ‘catalyst’. That catalyst can be a book, a mentor or a personal growth workshop.
A breakthrough goal is often scary when you first think of it.
It brings up fear because of the level of commitment. Then often the excuses kick in, for why it’s too hard to achieve – due to lack of time, money etc.
The easiest thing to find is a reason not to do something
Be prepared for the ego to find excuses or ‘reasons’ for not working on a breakthrough goal. That’s the ego’s job and its exceptionally brilliant at it!
When you start thinking about a breakthrough goal, just ignore any fear and keep staying focused on what that goal needs to be, in detail.
This gives it substance and activates a powerful aspect of the mind that Napoleon Hill, the famous author of Think and Grow Rich talked about…
“What the mind can conceive and believe, it can achieve”
When you keep focused on a breakthrough goal and add substance to it, by working out the details of it, you are “conceiving” it.
Then and only then will you start to believe in it.
The challenge is staying with it as an idea, until you believe in it.
There’s a pushing through the fear ingredient of setting a breakthrough goal. That’s where someone who is an expert in planning out the process of achieving breakthrough goals can help you.
An example of this is to engage a mentor to help with a business growth plan.
A Business Growth Plan is a very in-depth breakthrough goal planning exercise and goes way beyond the traditional ‘business plan’ process.
A business plan is a great exercise when you’re starting a business or considering a big expansion, or want to seek capital from an external source.
What’s missing in a business planning process, that Business Growth Planning includes, is an understanding of the only 8 growth KPIs that are available to grow any business.
There are actually only 8 ways to increase net profit in any business, so being aware of them all and considering all 8 is smart and very advantageous for business goal setting.
The only 8 growth KPIs to grow any business are…
- Increase Leads
- Decrease Lead to Quote Conversion Rates (which saves loads of time in sales)
- Increase Quote to Sale Conversion Rates
- Increase the Average Spend of Clients
- Increase the Frequency of Purchases of Clients
- Increase Prices
- Increase Production Gross Margin
- Reduce Expenses
NOTE: increasing the Average Spend is actually very different to Increasing Prices and so they need to be separated. A 10% increase in prices increases net profit much more than a 10% increase in average spend values, using add on selling or other strategies.
The first KPI – increasing leads only increases net profit with turnover increase, but it doesn’t increase Net Profit Margins.
The other strategies tend to increase margins, especially raising prices and increasing production gross margins.
These can make a massive difference to net profit and margins.
The Power of Increasing Prices
If you increase the Average Spend by selling higher priced services, by say a 10% average, you will increase net profit by 10%.
If you raise prices by 10% the net profit increase amount depends on your current Net Profit Margin.
The increase could actually be 50% to 300% or more.
The percentage increase in net profit is determined by the current business’ net profit margin.
When you include every one of the above 8 KPIs and have a plan with one strategy for each one, the difference in the net profit increase can be HUGE.
“We’re talking about a 50% to 500% increase of Net Profit in months in businesses with $700,000 or higher revenue.”
Knowing what each of these important KPI figures are for your business is necessary to begin with, however a close approximation can be used to plan with.
If you’d like to see this in action, how these figures all relate to each other and what difference a small percentage of some or all of these would make to your revenue and net profit per year, you’re welcome to download your own (free) copy of The Business Growth Calculator.
The tool can be confusing to use, so you can also take advantage of our free ‘Breakthrough Meeting’ to discuss the Business Growth Calculator applied to your business.
You’d be amazed at what it this tool can actually reveal about your business’ true profit increasing potential!
What Breakthrough Goals Can You Set?
Breakthrough goals are very motivating goals because they put an end to issues and/or stress you’ve put up with for months or even years.
Does that sound motivating?
Breakthrough goals inspire you to make the personal habit changes necessary to achieve something truly life-changing.
Going from a stressful, struggling business situation to a super profitable, fast growing business with increasing cash reserves, where you are able to take holidays for months at a time, anytime during the year and anywhere in the world, is what a breakthrough goal is all about.
Don’t you deserve to be rewarded – for all your years of hard work?
A breakthrough goal is definitely worth the effort. It may require an investment, which isn’t a cost because the benefits make it an investment.
Its about achieving a permanent improvement for life.
It may require 6 to 9 months of commitment, but how many more years do you intend to be running a business?
Is 6 to 9 months really too long to wait for a radical improvement in both your business and personal/family life?
Breakthrough goals lead to happiness in all aspects of your life.
You’ll feel more fulfilled, joyful, at ease, and separate from your business with clear boundaries where you don’t think about it at all after 5pm or on weekends.
To reach a whole new level of success that thinking will need to change and that’s about mindset.
A mindset is a combination of beliefs, personality and experiences
We adopt the majority of our beliefs from our parents, with 90% of them formed at an unconscious level, before the age of 5 (reported by leading psychologists).
Our ‘bad’ experiences create barriers in our mind so that we are skeptical and untrusting of people, advisers, marketers, or other opportunities that come across our path.
Assumptions are the biggest cost in a business
Not marketing or employees.
One single assumption can and does prevent businesses from generating $100,000 more in net profit in months.
The large majority of all businesses are missing out on an extra $100,000 in net profit, because that and much more is so commonly seen as an increase in clients’ businesses over 20+ years.
Here are a few examples of common assumptions that may be relevant to your business…
- That the website developer you recently used built a visitor and Google friendly website
- The wording on your website is the best it can be, or can’t be improved much, and doesn’t mater much
- The next person you hire will work out great and will have a good attitude
- A business trainer/mentor is a cost, not an investment
- All the services and jobs your business does makes a good, healthy profit margin
There are dozens of assumptions held in mind by business owners, that hinder their super success.
“If a business isn’t super profitable then assumptions will be running in the mind of the owner.”
I’ve been guilty of assumptions many times myself as I’ve had dozens of them changed in my three decades of owning a business, including a couple last year!
What about you? Is there evidence some assumptions or mindsets could be holding your business back from rapid, life changing improvements?
It’s not something to be concerned about because the good news is, mindsets can be changed rapidly with facts and seeing evidence of success from a mindset change.
A mindset is like “blinders” that horses wear.
Blinders keep horses focused and unaware of potentially scary distractions.
These blinders for horses are like our own mindsets. They can be helpful or a hindrance of our own performance.
Assumptions create mindsets.
To set a breakthrough goal it starts with ignoring what you currently believe is even possible.
“Achieving the impossible is easy. Miracles take a bit longer.”
What’s “possible” is an opinion – rarely a fact.
To set a breakthrough goal, simply start with what you’d love to achieve, that would excite you or transform your situation.
What would you love to see achieved in 3 months to 1 year – even if you think its not possible?
It’s best to make your goal a measurable goal, so that if it was achieved you could see by the evidence.
It may be a financial figure, or a time figure, such as seeing net profit increase to $50,000/month, or to be able to take 2 months holiday – worry free.
Once your breakthrough goal is set, it’s time to consider feel good goals, which will be the steps necessary to achieve it.
There may be quite a few feel good goals you’ll need to set and achieve, in order to achieve your big breakthrough goal.
To grow any business, some figures or KPIs need to change.
As mentioned above, there are only 8 to consider.
Some of these figures change as a result of increasing income and net profit.
Download the Business Growth Calculator to use to set your feel good goals.
This powerful tool makes setting your business goals so much easier.
Not long after it was created (in 2004) it was used to plan with strategies to achieve a breakthrough goal for a joinery company.
The company was turning over $1.8 Million per year but was running at a loss of $126,000 per year. With careful selection of percentage improvements of some of the 8 growth KPIs a goal was set to be making $180,000 net profit, even if the turnover was lower.
Strategies were then chosen to improve the KPIs.
That goal was achieved in 10 months and then smashed two months later to be at $360,000 net profit per year (based on monthly figures).
The tool has been used to plan to double, triple or quadruple the net profit of hundreds of businesses (with many achieving their set goals). It will definitely help you to plan to grow your business too.
When you download it and open it, make sure you watch the video for it (with the tool when its emailed to you) as it won’t make any sense or be of value to you if you don’t.
The tool may seem plain and simple, but in practice with a pro, it’s exciting how accurate it can be, and also inspiring when breakthrough goals from it are worked out.
You can use it just to see the effect on your business’ net profit margin from a price rise and that’s not easy to calculate.
A 5% price rise does not increase net profit by 5%.
Your plan’s strategy “types” needed to achieve your breakthrough goal need to be identified too, and we can discuss this in a Breakthrough Meeting using the Business Growth Planner tool.
Setting multiple ‘feel good’ goals will lead you to achieving a ‘breakthrough’ goal.
Now, today is a great time to set a breakthrough goal!
Would Business Freedom be a Breakthrough Goal for Your?
Find out what ‘business freedom’ is and how to achieve it with your business, with the world’s first Business Freedom Assessment.
You’re also welcome to book a complementary ‘Breakthrough’ business meeting where together we’ll explore your business’ Net Profit growth potential and talk about business freedom as a realistic and achievable goal.
No commitment is needed, its completely obligation free.
You’d be amazed at how easy it is to use the Business Growth Calculator to plan to double your business net profit in 6 to 12 months.
A ‘breakthrough meeting is an opportunity to make a serious difference to your business.
Visit the calendar booking page to find a day and time that suits you to book in for your own Breakthrough Meeting.
And if you’re serious about wanting to achieve a BIG breakthrough goal with your business and life, the Academy of Business Mastery is definitely worth considering.
It was created to help any business owner achieve true “business freedom” – where working at all becomes a choice.
Don’t let fear, skepticism or assumptions stand in your way.
Explore every opportunity and remember, ignorance is expensive and education is an investment in your success.