It’s more important than you
realize to revisit your financial goals at least once every year. Whether
you’re a small business or a multinational corporation, making this a habit can
lead to great things for your business while failing to do so can lead your
business to stagnation and a lack of growth in the future. These are a few of
the most important reasons why you need to make revisiting financial goals a
priority for your business each and every year.
Laws Change
While that might not seem like
a big deal, new laws impact businesses every day. New tax codes, the Affordable Care Act, and even new laws regarding truck drivers and how much sleep they are
required to have before they can drive again affect the financial outlook of
businesses. This requires a new look at your financial goals in order to
determine if changes are necessary. The more attention and consideration you
give your financial goals, from year to year, the better able you are to adapt
to these new changes without experiencing significant blowback.
Customer Needs, Wants, and Demands Change
Consumers are a fickle bunch of
people – often off to chase the next shiny new object that comes along. This
Shiny New Object syndrome keeps many businesses running. While you may not
create new mobile devices that come out two or three times a year with
something new added each time, you do provide either products or services to
your public.
You need to keep your fingers
on the pulse of what they want, need, and require in order to keep coming back
to the well of products or services you offer. If you’re losing customers or
not gaining new customers at the pace you expect revisiting your financial goals can help you adjust your goals and the plans you make for accomplishing
those goals to accommodate these changes.
Stuff Happens
Your business does not exist or
operate in a vacuum. Things that happen in the world around you impact your
business and your financial goals. Everyday situations such as data breaches, evolution in technology, wars, and even changes in the worldwide economy can
have big consequences for your business – or even be a boon for your business.
If you’re not revisiting your financial goals as you should, you might miss out
on golden opportunities. Or you may fall victim to your own shortsightedness
by not making key changes in time to do good things for your business.
Forces You to Keep Your Business Model Fresh
The thing about financial goals
for businesses is that they drive the business model. The model you have for
your business is all about achieving your financial goals. This includes your
yearly business plans, the products you launch, and even the way you conduct
your business. Without financial goals lighting your way, you’d have no
direction. If you’re not consistently updating your financial goals, you’re not
refreshing your business model and making effective changes to your business
plan.
Gives You the Opportunity to Explore the Effectiveness of Current Goals and Strategies
Sometimes, your current goals
and strategies are ineffective. Either they are too ambitious to accomplish in
a reasonable amount of time or they are not ambitious enough. Either problem
can lead to a lack of motivation among key players and an overall atmosphere of
failure. Revisiting your financial goals once a year allows you to assess them
more objectively – removed from the emotions of the time when the goals were
set – so that you can make critical changes to those goals and strategies.
Financial goals are critical
for businesses today. They give you specific numbers to strive for and require
a plan of action to accomplish. For most businesses, it is these goals that is
the driving force behind marketing, research and development, product creation,
and the development of new technology. These financial goals deserve far more
thought than a “one and done” business meeting and must be revisited often in
order to keep your business on task and on target.
These are just a few quick
reasons why they are so important. There are sure to be reasons that are
specific to your business that may require you to revisit your goals even more
frequently. Once a year should be the absolute minimum if you’re interested in
gearing your business up for success.
No comments:
Post a Comment