Most financial goals for a new business tend to feel like wishes or simply stop at visions of big numbers. The problem though is that these lofty aspirations aren’t always effective at driving the actions needed to achieve those goals. Financial goals for a new business really need to be more like mini action plans, giving the goal a better chance of success, so you can continue growing your business with confidence. 

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Most Financial Goals For A New Business Are Too Vague 🤑

The dreams you have for what your new business might become one day (cue scene of you throwing piles of money into the air) probably feels more like a wish list than a life plan. 

It would be normal, therefore, to never get started, to just delay the work, and keep it as a bunch of ideas for “someday.” 

But, if you want your future financial vision to become a reality, you need to make it a priority in the present. 

You need to bring the long-term into the short-term and make it more tangible, actionable, and achievable. 

If you wanted to run a marathon, for example, you wouldn’t just show up and start running. You’d start a rigorous training program now to prepare your body for the event. 

In business, you need to think similarly – because a vague wish list isn’t going to effectively prepare you for the future. 

Instead, set intentional and clear financial goals for a new business.

Critically, goals are more solid than a simple intention – they need to be specific and time-bound. 

This isn’t about manifesting an imagined future, either. 

This is about doing the work to actually realize your dreams. 

That said, goals can easily become overwhelming – especially if you try to take on the entire thing in one bite. 

By the way, overwhelm is a common growing pain for new small business owners – something we can work on with 1:1 coaching.

In this article, you’ll learn how to create actionable financial goals for a new business and break them down into bite-sized pieces. 

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What Are Good Business Goals? 🎯

You might start by naming high-level quantitative goals, like: “earn $25,000 in profit in June” or “grow sales by 20% next year.” 

The problem is that these lofty aspirations are not always effective at driving actions. 

We need to add a few components to help them be more useful. 

At the highest level, financial goals for a new business are effective when they have a compelling what, when, why, and how. 

What + When + Why + How

You’ve probably written a lot of “what, when, and why” goals before – for example: “save $2,000 by Dec 31 to purchase a new computer.” 

However, there are two reasons why goals like this tend to fall short. 

First, they are not linked to any specific actions – there’s no “how.” 

Second, the “why” is too generic. 

Let’s explore both challenges.  

What Are Good Business Goals 01: “The How”

This is about making your financial goals actionable. 

The goal above, as written, might be specific and time-bound, but it lacks action. 

It doesn’t make clear how exactly you’ll save that $2,000. 

Here’s a better goal: “save $2,000 by Dec 31 to purchase a new computer by setting aside 10% of the profit from every customer order into a savings account.” 

What Are Good Business Goals 02: “The Why”

Let’s stay on the computer example. 

What would the computer be used for? Why do you need a new computer? What will it specifically unlock for your business or help you achieve? 

The point is to get as specific as possible. It will up the ante in terms of your motivation. 

Small Business Goals Examples

Short Term Goals For Business

Here are a few examples that might be useful in the short-term: 

• “Reduce operational expenses by 15% and sustain it over the next quarter to increase profitability and grow Net Income.”
• “Hire 1 part-time employee in September to prepare for the expected peak in sales during the holiday season.”

In the short-term, it will be extremely important to give your business a financial health checkup.

| FREE: You Absolutely Need This Simple Business Financial Health Checklist

Long Term Goals For Business

Here are a few examples that might be useful in the long-term: 

• “Save 3 months worth of operational expenses plus a 10% buffer as cash on-hand to set aside for emergencies or surprise opportunities.”
• “Purchase new equipment worth $11,000 for the kitchen to improve efficiency in the production process and consistency of our end-product.”

| RELATED: Do You Need A Perfect Business Plan to Get Started?

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Name Financial Goals For A New Business

Know that you have a basic understanding of what are good business goals, here are 3 powerful steps to setting clear financial goals for a new business: 

Step 01: Identify The Gap

There are so many things you could go after. 

So, to identify what are good business goals for your business, think about the gap between where you are today and the vision you have for your business long-term. 

What’s the gap? What do you want to be true? 

Consider the following questions to get thinking: 

• How big is the gap between the state of your existing business and your long-term vision? What investments might help you close that gap? 
• How would you prioritize those gaps? What’s most important? Which actions would excite you most? 
• What is the minimum you could do to get started? What’s the biggest, boldest thing you could do first? What’s an acceptable middle between those last two answers? Find a sweet spot that stretches you and isn’t too easy or too hard. 

If you need help moving from a wish-list to execution, you might be interested in my workbook: 3 Entrepreneurial Skills That Fuel Your Ability to Run Your Business.

You’ll have the opportunity to cultivate essential entrepreneurial skills needed for effective business management: Growth Mindset, Objectivity, & Execution. You can learn more here. 

Step 02: Write Your Goal

When you write financial goals for a new business, it should check all of the following boxes: 

Make Your Goal Specific

Your ability to focus is your greatest asset. 

The more clarity you have about what you’re trying to achieve, the more likely you are to apply all of your creativity, intellect, and persistence to get it done. 

Take twenty steps in one direction, as opposed to one step in twenty directions.

Is it specific? 

Make Your Goal Measurable

It’s not very useful (let alone inspiring or motivating) just to say:

• “I would like to make more money this year than last year.”
• “I want to exercise more often this year than last year.” 

Those are intentions, which are useful to start. But, again, that’s not sufficient.

For a goal to be useful it needs to aim you in the right direction.

Is it about profit? Sales? How much? By when?

Is it measurable?

| RELATED: You Need to See Your New Business as a Laboratory

Make Your Goal Actionable

Use action verbs. Make it clear and direct. 

Focus your attention, too. If you’ve got five goals rolled into one you’ll be distracted and pulled in multiple directions. Aim your effort with clarity.

Is it something you can act on?  

| RELATED: You Need to Roll Up Your Sleeves & Do the Work

Make Your Goal Risky

Usually, the “R” in a SMART goal stands for realistic, but when we start asking ourselves what’s realistic, we’re more likely to lower the bar. 

It’s a balance, of course. You don’t want to name something so out there that it’s impossible.

Look, I firmly believe in a pragmatic approach to building your business, but if the goal you’re aiming for isn’t a little challenging, it might not push you to rise to the occasion either.

So, stretch just beyond your comfort zone. 

Is it a little risky?

Make Your Goal Timed

Nothing new about needing a deadline. Effort and work will spread to fill the time available. Don’t let it. Set a reasonable deadline. 

Are these long term goals for business or short term goals for business?

Make the timing what you need it to be – maybe you need cash in the short-term or are planning a big expansion to a retail store in the long-term. Just pick a date.

Is it timed?

Make Your Goal Exciting

Achievement of a goal rises when you care about the outcome. 

If it doesn’t get you pumped, rewrite it. 

No, really, it should light a fire in you. It might sound like a silly step, but it’s essential to get right. You need to be motivated to hop out of bed and get it done.

Is it exciting? 

Maybe your goal is to complete an exciting email course on small business money management. 😉

| COURSE: 4 Amazingly Simple Email Courses For Small Business Owners

Make Your Goal Relevant 

Finally, make sure it’s aligned with your values and with everything else going on in your life right now. 

Oh, did you forget that you’re a human being, living in a complex and fast-changing society, with a thousand other things in your life to do? Remember, work, your business or side-hustle – these are spokes on the wheel. They are not the hub.

For example, when my kids were born that shifted my attention – and rightfully so.

Is it relevant to you and your life?

Step 03: Test-Drive Your Goals

Once you land on a specific goal, take time to double-check that it’s truly going to be value added to your business. 

Pressure Test Financial Goals For A New Business

• Why this goal right now? What makes this mission critical? 
• How does this specific goal advance the bigger vision you have of your business? 
• What’s the problem? What are you trying to achieve?
• What constraints exist for this goal? What might get in the way or make it extra challenging? 

Short Term Goals For Business Need To Lead To An Action Plan

After you’ve validated the goal is the correct priority for now, it’s time to make a plan of attack. 

Think through how you’ll get it done. Break it down: What actions will be needed? 

Consider any new habits or routines you’ll need to install in order to check in and follow up on the goal – a Control System can help. 

| RELATED: How to Find the Keys to a Successful Business with these 8 Critical Steps

Let’s say you bake and sell cupcakes in a small storefront, but you can’t keep up with demand given your modest kitchen size. 

You’ve done the math and have set a long-term vision to move to a larger, better equipped location in 3 years. 

There’s lots of ways to break that down: 

• Make a list of your requirements.
• Determine your financial needs.
• Create a vision board of what you want the space to look like.
• Talk to a real estate agent for a consultation. 

It doesn’t matter where you start, the idea is to start small. You’ll build momentum with baby steps. Make a detailed list of what needs to happen and by when. 

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Set Financial Goals For A New Business – Start Here 🤓

As with everything related to being a new entrepreneur, you won’t set financial goals for a new business correctly on the first try. 

Practice makes progress here – you’ll have to feel it out. 

Take your goals for a test-drive. If you were to really see it through, what would it take? Can you really fit it into your day-to-day life? Think through the scenarios. 

You might set financial goals for a new business and realize they were way too big and too challenging or too small and too easy. 

It’s okay to adjust goals that aren’t quite right or even abandon goals that aren’t serving you. 

Just be sure to identify goals that compel action. You’ve got this!

Struggling to define financial goals for a new business?

Schedule a FREE Discovery Call with me to learn more about how coaching can help you set big goals and start and grow your business with confidence.

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