In order to create the most successful franchise that you can, setting achievable and suitable goals is imperative. But what are the differences between weekly goals, monthly goals, and yearly goals, and how should you go about implementing each in a way that works for your business?
For business owners, setting goals is standard practice for a number of reasons, from clarifying the central ethos of your brand to determining the long-term future of your business. In this article, you’ll discover all you need to know about effective goal setting.
The difference between weekly, monthly and yearly goals
The difference between weekly, monthly and yearly goals is fairly simple to explain. Essentially, each time frame requires you to set goals that are realistically achievable within that amount of time. In a growing and competitive global market, setting effective goals of all sizes will help you to get ahead of the game.
How to set yearly goals
When you’re setting yearly goals, you’re making larger, longer term plans. With twelve full months to complete these goals, you can think big. Often, yearly goals will sound intimidating to some, as they will feel the most unobtainable and theoretical, but your ability to master long-term thinking will determine the future success of your franchise.
To set a yearly goal, you should do your research, reflect on the previous year in business, and land on some broad areas for change or improvement. For example, you might set a yearly goal to increase awareness of your brand among the general public, or you might decide you’re going to take 10 new products to market that year. Whatever your goals, always be asking yourself: Does this align with my vision for the franchise?
Having the vision and revisiting it is key to staying on course. Too often business owners get distracted by short-term goals without thinking about the long-term strategies that will help to compound their efforts.
—Jedidiah Alex Koh, Coaching Changes Lives
How to set monthly goals
Monthly goals are a great complement to yearly goals, and to give yourself the best possible chance of success, you should make use of both methods of goal setting. Use your yearly goal to express a broader idea, and then break this down into smaller, measurable goals, which are reviewed on a monthly basis. Checking in with your goals on a monthly basis will ensure that you know exactly how things are going, and how on track you are to achieve your larger yearly goal. Some examples of shorter term goals, which might be set monthly or quarterly, are:
- Hire a new employee
- Achieve a higher profit that the previous month
- Increase traffic on your website
- Start an ‘Employee of the Month’ programme
- Create a business profile on social media if one does not exist
- Increase your social media postings
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Set your monthly goals in six steps:
1. Identify your goals, remembering to align them with your longer term yearly goals.
2. Break these goals down into actionable business objectives.
3. Ensure your goals are measurable.
4. Clearly communicate with any and all employees what goals you’ve set, when they need to be completed, and how they will conceivably be completed.
5. Give employees goal-related tasks to complete.
6. Measure the progress of your franchise towards meeting your monthly goals on a regular basis.
Goals don’t have to be the bane of your employees’ existence. When done properly, setting goals can improve commitment materially and help clarify an employee’s role – the single biggest driver of organizational health.
—McKinsey & Company
How to set weekly goals
Weekly action plans are like a micro-version of your monthly goals, and they can take your business to the next level when they’re set correctly and used effectively. Every little helps, and these small-scale goals will all add up, leading you to the achievement of much larger business goals. Weekly goals will likely be determined by the work you and your franchise team are completing that week, and will be very specific to your individual business.
Weekly goals should be the easiest to implement and measure, as they have the quickest turnaround time. They also shouldn’t feel overwhelming to employees. As you set weekly goals, remind your team that all these smaller goals are in service of your yearly goals, and they’ll gain a better understanding of how the larger goals will be accomplished in time.
The trick to setting short term goals is making sure that they build up, day by day, week by week to help you reach your longer-term plan.
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Use a combined goal setting strategy to create SMART goals
Using a combined and integrated goal setting strategy, you can ensure, as a franchisee and business owner, that you’re creating the right kind of goals: SMART goals. This widely used acronym stands for:
- S for “Specific” - What is your goal? Is it targeted, particular and actionable?
- M for “Measurable” - How will you know when this goal has been achieved? What steps will you be able to measure along the way?
- A for “Achievable” - Is your goal realistic? Can you actually make it happen? In comparison to other goals that you’ve set and achieved, does it seem possible?
- R for “Relevant” - Is your goal relevant to the interests of your business? Is it worth your time and effort? Is now the right time to shoot for it?
- T for “Time-Based” - What is the clear and concrete deadline for this goal? When will you get it done?
Effective goal setting is a key ingredient in the recipe for franchise success
Franchising isn’t easy, but it does come with many benefits, and if you can nail the running of your franchise business, you’ll see the rewards. Effective goal setting will help you to elevate your operational model, allowing you to stay organised and on track to succeed. For more advice and guidance, find out how to set employee wages accurately as a first-time franchisee, or discover four tips for building a strong relationship with your franchisor.
Cara Squires, Point Franchise ©