Another new financial year, another set of goals, right?
Setting financial business goals is standard good practice at the beginning of a new financial year. But does it feel a bit different to you in 2022?
It is! For the past two years, we’ve been fully swamped by COVID-19, with all its changing risks and restrictions. In 2022, things look different again.
Chances are, all these ups and downs have had an impact on your business.
Perhaps it has grown – great! It may have diminished – hang in there.
Whatever your circumstances, goal setting now is about what’s practical and motivating for you in the current uncertain climate.
So, how do you set practical financial goals for 2022?
Why Set Financial Goals When Things Are So Uncertain?
When you aren’t sure what will happen next week, it can feel a bit fruitless to set financial goals.
But, the start of the financial year is an ideal time to take stock of your current financial situation and establish habits that will see your business get on a stronger footing for the year ahead.
Goal setting helps sharpen the vision of what you want for your business and informs your team of what is expected of them. Setting goals can also bring some comfort amid uncertainty – you are still at the wheel here, even if the road may be bumpy at times.
Your financial goals may be similar to last year, depending on how the year played out. And that’s totally ok. Or, they may be different to reflect the next situation of your business.
If You Only Do One Thing, Do This: Adapt
During a crisis, business owners have to deal with a bunch of competing priorities. With things in flux, reiterating your goals is more critical than ever. It ensures you can continue to prioritise the right actions at the right time.
Depending on the level of impact of COVID for you, you might have to adjust any previous goals you had. You may also need to consider the nuances for different parts of your business – perhaps some aspects of your business may be thriving, others less so.
Think about:
● What makes sense for you to pursue right now?
● What goals might be unobtainable or not help your business succeed during this time?
● What important goals should be carried forward?
● What should we abandon?
● What can we adjust?
Your decisions will trickle down to impact business support functions like operations, marketing and HR. So, make sure your financial goals are clearly set and communicated so everyone is on the same page, and plans can be adjusted as necessary.
Ready To Set Goals? Be SMART
So, now that you have a picture of what your business situation looks like, how do you set those practical goals that are going to drive progress, even when things might seem a little uncertain?
The SMART goal system is a great way to put parameters around your intentions for the year ahead. Goals should be:
● Specific
● Measurable
● Attainable
● Relevant
● Time-Bound
Being ‘smart’ when setting your goals cuts out generalisations and guesswork, sets a clear timeline, and makes it easier to track your progress and identify missed milestones.
Here’s an example of how it could work: Our goal is to [achieve something] by [time]. [Key players] will accomplish this goal by [following these steps]. Accomplishing this goal will [result!].
Agility Helps Add Goal Value
As the world changes at a rapid pace, it's not enough to set goals once a year and just leave them.
Goal setting should be flexible and an ongoing process. As the year progresses, keep your goals in sight and set regular reviews to check on your progress. Be ready to adjust them if circumstances change. Goals should work for you as you work towards them.
Need Help? Ask For It
The COVID-19 pandemic has been rough, even devastating for businesses. Many have lost clients and customers, some have been forced to let staff go, others have been forced to close temporarily or permanently.
But government support is still there: there is leave and self-isolation support, subsidised wages, and business cash flow and tax measures that you can reach for. Find out more on the government’s COVID-19 business support website. And, if you need more personalised advice, CornerStone is also here to help you figure out where you may be able to get support.
It is easier to stick to a plan when you have someone supporting you along the way. CornerStone is here for open chats about your business goals and financial health. We’re objective and have your best business interests at heart.
Reach out to us for support while financial goal setting and at any time during the year