Continued Growth: Updating Your Business Goals

Continued Growth: Updating Your Business Goals

Create new growth goals that are specific and attainable

With a somewhat uncertain economy and housing market wrapping the end of 2018, home builders may be cautious moving into the new year. However, the construction industry is still expected to remain one of the fastest-growing markets. It’s projected to grow at a rate of 4.5 percent over the next five years, bringing in $1.5 trillion in 2022.

Now’s the time to create new goals that will keep you moving forward with the industry.

Review your business plan

First, take a look at your business plan. Because you need to update your plan often, it’s likely time to change a few things.

A standard construction company business plan should include:

  • financial information: cash flow, forecasts, financial statements
  • operations: vendors, equipment, suppliers, space needed
  • marketing strategy: blog, newsletter, social media channels, ads
  • goals and objectives: growth goals, target dates

Let’s take a closer look at the growth goals aspect. Note that the way you approach goal setting can also be applied to other areas of your business plan.

When to set new business growth goals

There are a few different periods when you should update your business’s growth goals, including when you’ve just reached your previous goals.

It can feel great to reach a goal, especially related to growing your team or your bottom line. But don’t stop there. There are likely many other areas that could use attention to grow, so start getting creative.

And remember that each year needs to bring growth in one way or another. Whether you excelled in 2018 or could have done better, as we are settling into 2019, now’s a great time to set new goals and focus on other areas.

How to set growth goals

Goals and objectives are all about reaching a certain target by a certain date. A good way to approach goal setting is to remember to create SMART goals: those that are Specific, Measurable, Attainable, Relevant, and Timely. This method allows all team members to be on the same page and gets you thinking about a goal from new perspectives.

Specific. Don’t just write down a goal that you want your business to generate more revenue in the next year. Take a look back at what you made in certain months over others, factor in any new hires that you’ll have to pay, and create a specific dollar amount for a goal. You may discover that you have to raise your prices for services slightly to reach your goals, which is common practice for small businesses.

Measurable. Remember that goals should be measurable. This means that a goal to boost morale and company atmosphere, for example, is not measurable since there’s no real way to measure whether or not that is happening; results are mostly observational.

To make it measurable, however, send a survey to team members before and after you announce this goal and take steps to reach it. This way, you’re actually measuring what percentage of employees show a change.

Attainable. Don’t set lofty goals that you won’t be able to reach. You have the numbers in front of you from last year, so trying to double that without a plan in place that would allow that to happen isn’t going to be attainable. You’d be already setting yourself up for failure.

Instead of reaching too high, set goals that you can map out and actually obtain. Be realistic with yourself and your team members. Remember that small steps help you reach big goals.

Relevant. Simply creating a growth goal for more money isn’t quite enough. Why do you need to bring in more bacon? What will you do with it? Do you need new equipment? An assistant? An accountant? Consider creating goals that meet all of the above requirements that actually fit in with your overall mission for your business at this time.

A good example is to consider whether you’d like to focus your time on a specific niche in the construction industry. Is there an untapped area that you’d love to dive into? Would you like to expand into other locations close to your city? Now’s the time to take a risk to make yourself stand out. You just need solid goals behind you.

Timely. Create a detailed schedule for your growth goals and a date that you’d like to achieve them. For example, you will have X number of new tools/equipment or will hire X new employees by X date, five months from now.

Remember that it may not always be the right time to take on a big risk. If your company took a big hit last year, consider using the next few months to build yourself back up to where you were. Then, you can more confidently explore new avenues for growth.

Creating growth goals that are SMART will help keep you focused on what’s important for your business right now while being as specific and detailed as possible.

How to measure success

Aside from actually measuring the specific goals, you create, try using performance indicators to keep you and your team on track towards success. These can be related to financial figures, the number of new clients, or important milestones for your business.

Remember: just because you make a mistake, or didn’t meet a goal on time, doesn’t mean your business is failing. There will always be hiccups along the way. So, make sure you congratulate yourself and your team for any win.

For more advice about your building business’s success plan and growth goals, get in touch with our team at No Boundaries Advisors. We offer a wide range of services to construction clients and would be happy to review your current business plan.