Setting Goals For Success!

As many of my readers know, I am a bit of a golf fanatic. To feed my passion, I was watching the golf channel the other night where David Feherty was interviewing Greg Norman (The Shark). For you non golfers, Greg Norman is a very famous retired PGA golfer from Australia. Feherty asked Greg, "We all know you are a great golfer, but what has been your formula for even greater success in business?" Read more.

Feherty went on to say, "We know that you are not a road scholar, so how have you managed to become one of the most successful and wealthiest businessmen in the world?" Greg said, "You are right. I am not a highly educated man, but I applied what I learned early on in my golf career to be successful. I had to SET GOALS for myself."

He went on to say, "The first thing I do is look at a business venture and then set my goals for what I want to achieve. The secret is, once I set my goals, I gather as much information as I can about the business venture so I can make good decisions that will allow me to achieve those goals."

How ironic! The first thing I do with a dealer when building a business plan is to set goals before we do any financial forecasting. The information source for setting business plan goals is gathered from the Financial Performance Analysis that establishes the company's strengths and weaknesses.

Setting goals is much more than simply saying I want to make a better profit or grow my business by 10%. The goals must be:

jumperSpecific

Measurable

Attainable

Realistic

                                                                      Timely

Top Achievement calls it "S.M.A.R.T Goals". To set a specific goal, we need to establish what we want to accomplish (example: reduce floor plan interest expense). We need to measure it, establish how we will attain it, make sure it is realistic and set a time frame to put the goal into action.

Using our example, our goal is to reduce interest expense to 1.5% of gross sales, which is a reduction from 2.2%. We need to set a target average floor plan inventory level that will result in attaining that goal. We need to monitor our inventory and purchases monthly to insure we are achieving the right outstanding balance. We need to establish whether we can service our sales needs with our target inventory balance and we need to set a time schedule to meet our goal. This may mean scaling back purchases, advertising a sale to reduce the outstanding inventory balance, negotiating interest rates, and/or wholesaling inventory to fellow dealers to name a few.

By bringing focus to your goals through this set of procedures, your chance of achieving your target interest expense is increased 10 fold. The need to change something in your business is not enough; you must establish a specific goal and set out how and when you are going to achieve it.

If you need help setting your goals for success, contact me for a free consultation

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