Goal Setting For Business Development: What Every Entrepreneur Must Know

• By : Staff Writer
• Business Development
• 0

Introduction

Get it right, follow it through and your business will thrive. Fail to do it, miss it or fail to follow through and your business will collapse. Above all, how do we go about goal setting for business development? Let us consider what this entails.

Table of Contents

• What is a goal?
• Relationship between goals and objectives
• Examples of objectives and goals
• Mapping the goal setting process
• Your marketing plan and situation analysis
• PESTLE model
• SOSTAC model
• Frameworks for developing business objectives
• The big 4 objectives
• The 5s objectives
• SMART objectives
• Audience segmentation: knowing target audience
• The buyer’s journey
• The buyer persona
• Digital channels
• Unique Selling Points
• The PRACE framework
• Other Factors to consider in setting up business objectives
• Conclusion

What is a goal?

A goal is an expression of your desired outcome over a long term, usually three to five years. For example, you could have a business goal of becoming an industry leader. Similarly, your business goal could be to grow revenues.

What are objectives?

In contrast, objectives are short term and usually timed for a year or less. In other words, they are more specific and include the actions or tactics for achieving them. For example, to grow your revenue, you could set an objective to “increase new customer base by 15% by December this year.

Relationship between goals and objectives

As regards goal setting for business development, goals are your desired outcome whereas objectives are the specific actions for achieving your goals.

Goals are oriented towards fulfilling the mission of the business. They are therefore higher in hierarchy than objectives. Furthermore, objectives are broken down into specific tasks where as goals are broader in scope. Moreover, objectives are measurable and expressed as tangible targets; in contrast goals are more general.

Certainly, goal setting for business development goes further to define those goals into objectives that are actionable.

Examples of objectives and goals

Examples of business goals may include the following:

• Increasing profit margins
• Generating higher turnover
• Increasing customer satisfaction
• Increasing brand visibility
• Being an industry leader

On the other hand, examples of business objectives can include:

• Generating 15% return on investment for current business year.
• Increasing brand visibility by 25% within the next 6 months
• Increasing the marketing share by 5% in next business year.
• Reduce general operating costs by 5% in current business year.

Mapping the goal setting process:

Before we go into details of defining your goals further into objectives, let us consider the general picture. For effectiveness, goal setting for business development generally considers the steps highlighted below:

First, draw up or outline your marketing plan

Second, perform situation analysis

Third, set realistic objectives

Subsequently, highlight strategies

Thereafter, break down your strategies into tactics

In addition, perform synchronized and optimum execution with your team

Finally, do not forget to put control measures. In addition, monitoring, evaluation, feedback and adjustment measures should be put in place.

Your marketing plan and situation analysis

Above all, you have to perform a situation analysis and draw up your marketing plan. This comes before goal setting for business development.

Thankfully, there are models you can follow for goal setting and implementation. They include the SOSTAC model, the PESTLE model and several others. We will briefly consider the PESTLE model. Thereafter, in greater detail, we will consider the SOSTAC model.

PESTLE Model

The PESTLE model is a strategic planning aid for your business. Moreover, it helps a business assess the business environment. Thereafter, the business can create a strategy around the following aspects:

P: Political

E: Economic

S: Social

T: Technological

L: Legal

E: Environmental

SOSTAC Model

This model is a top ranked business planning model created by PR Smith. It is an acronym with the letters standing for:

The letter S: Situation analysis – First, answer the question where are we now?

‍Second letter O: Objectives – Make statements on where do we want to be?

‍Next letter S: Strategy –Suggests answers to how do we get there?

‍Fourth letter T: Tactics – Specify answers to how exactly do we get there?

‍In addition, letter A: Action – Give detailed answers to the question: what is our plan?

‍Finally, letter C: Control – Check for answers to the question: did we get there?

At first blush, this model seems easy to apply but it encompasses so much. Find more details below.

SITUATION ANALYSIS

There are many businesses that flounder because they failed to do a proper situation analysis. Above all, before setting goals for business development, keep the needs and wants of the prospective customers before you.

A situation analysis involves assessing the various factors that impact your business. First, a market analysis has to be done. What are the market trends like? What is the impact of external PEST factors? Will there be demand for your product or service? In addition, competitor analysis needs to be done. Are you entering a saturated market or you are actually creating a blue ocean? What is the environment like? To clarify, the environmental factor includes various economic, social and political aspects and how they affect your business.

Subsequently, as a part of situation analysis, conduct a SWOT analysis. You have to analyze the strengths and weaknesses of your brand. In addition, you have to explore the opportunities and consider the threats that could impact your business.

‍OBJECTIVES 

Do you recall we earlier emphasized the need to break down your goals into objectives? This is a critically important step. Similarly, you have to draw up supporting objectives for your business goals. Meanwhile, these objectives are the short term targets for achieving those set goals for business development

Moreover, You can develop your business objectives using the 5s objectives (sell, serve, speak, save and sizzle) framework. We will further consider this and more on objectives after reviewing the other components of the SOSTAC model.

STRATEGY

Here, you specify how to achieve the set objectives. In addition, you can perform audience segmentation. Furthermore, you should identify engagement channels. Finally, you have to perform competitor benchmarking.

TACTICS 

Tactics specifies short term activities to achieve business objectives. These activities should be flexible. In contrast, activities on the strategy level are longer and more enduring. In addition, tactics contains the details of strategy.

ACTION 

Do you know you have to project an action plan for each tactic you just outlined? Who is doing what? What resources or tools are needed? In addition, when are you expecting results? What channels are to be used to engage the customers? Certainly, you and your team have to provide answers to questions like these.

CONTROL

This is a critically important step. Failure to do this could mean taking steps backward. Here, you analyse and measure your performance. You monitor progress. Furthermore, this can be done periodically; daily, weekly, monthly or quarterly.

Tools you can use here include web analytics, KPIs, customer surveys and other reports.

Frameworks for developing business objectives

As a process in goal setting for business development, your objectives can be formed around some frameworks. A few of them will be briefly discussed below.

The big 4 objectives:

First, you have to consider the big 4.

Revenue/sales:

As long as you run a for-profit business, you cannot do without forming an objective geared towards improving your overall income or sales.

Margin/profit:

Certainly, chasing increased revenue alone is not sufficient. You have to include cost saving objectives. This is because your expenditure could actually eclipse your revenue and cancel out your profit. Consequently, you have to have a target profit margin in mind as an objective.

Customer satisfaction/loyalty:

Moreover, to be successful in business, you must build a reputation for quality service and customer satisfaction. If the customer is key in your business, it should show. Therefore, it has to be an objective in your goal setting for business development.

Brand value/ brand awareness/ brand preference

Furthermore, you should establish your brand in the minds of your customers. Your brand values have to be known. In addition, you have to cultivate brand awareness. Finally, you should make your brand preferred.

The 5s objectives

Second, The 5s goals framework as defined by PR Smith is useful in goal setting for business development. The 5s are

Sell – This objective revolves around growing sales and increasing market share.

Serve – Furthermore, the objective of serving is concerned with increasing customer satisfaction.

Sizzle – Moreover, you should increase attention retention by customers. For example, what is the visit duration, wow factor and site stickiness of your online channels?           

Speak – In addition, you should have an objective centered on improved two-way communication with customers. Furthermore, you should have a goal of increased customer engagement.

Save – Finally, you should aim towards gaining efficiency in your business operations. This gain in efficiency has to be quantified.

SMART objectives

Finally, for an effective goal setting for business development, each of your 5S objectives should be SMART.  This means that they should be:

Specific: Your objective should pinpoint problems and opportunities. In addition, it should contain sufficient detail.

Measurable: There should be some quantitative or qualitative attribute applicable to your objective. Consequently, this attribute can be applied to create a metric.

Attainable: The information in your objective should be able to improve business performance. In addition, the objective should be achievable.

Relevant: Your objectives should be able to solve specific problems faced by your business

Timely: Business objectives should be time-bound. That is to say, such objectives should be set using different time periods as targets.

After considering objectives in some detail, let us explore some core components of the strategy level.

Audience segmentation: knowing target audience

Did we mention that performing audience segmentation is included in the strategy level of the SOSTAC framework? Yes, you have to know your customer; even walk in the shoes of your customer.

What then is audience segmentation? It involves defining your customers according to location, demography, interests and behavior. Consequently, you can achieve better targeting. Certainly, audience segmentation has to come before targeting your customer.

The categories of audience segmentation include:

Demographic segmentation: by age, sex, income, marital status, occupation and ethnicity.

Psychographic segmentation: by interest, activity, opinion, attitudes and values.

Behavior addictions can further be divided along the lines of shopping, work, food and eating, gambling, love, and so on.

Finally, there is geographic segmentation which is by location.

Your audience segmentation can actually assist you in mapping out the buyer’s journey of your business.

The buyer’s journey

Goal setting for business development can be eased if you know the buyer’s journey. You have to identify the various touch points at which customers come in contact with your business. These touch points can be mapped along 4 stages. These 4 stages of the buyer’s journey are:

1. Awareness stage: This is also called the “See” stage. First, the customer comes in first contact with your brand or product. You would want to put your best foot forward here. Remember the saying that first impression matters? It is true.
2. Consideration Stage: You should also have strategies based on this second stage of the buyer’s journey. Also called the “Think” stage, the buyers are researching on alternatives. Therefore, you need strategies to convince them at this stage.
3. Action Stage: Another name for this is “decision” or “do” stage. Third, the buyer is likely making comparisons. It is where the buyer takes that conversion step that you desire. Whether it is buying your product, subscribing to your channel or booking for your service. 
4. Care Stage: This is the “loyalty” stage. Finally, you have to give “after sales” service. This will help the customer retention objectives you have. For example, you could offer a return customer discount or shipping discount.

The buyer persona

In addition, goal setting for business development can be helped along by identifying various buyer personae. You have done your situation analysis. More so, you have worked on your objectives. Furthermore, you have done audience segmentation and outlined strategies along the buyer’s journey. Next, you should draw up possible identities for your likely customers. Along the various audience segmentation types (demographics, interests, behaviors and geographies), what customer identities exist? Walk in their shoes and then try to meet their needs.

USPs & OVPs

And you ask what is next? Well, now you know your audience. What do you tell them?

Unique Selling Points

You first identify the Unique Selling Points of your business. Closely connected to the strengths of your brand, your USP is what differentiates you from your competitors. What makes your offering special to your customers? You must identify this from the customer’s perspective.

Online Value Proposition

Every business needs a strong and clear Online Value Proposition. That is to say, you should have a clearly expressed distinctive competitive advantage. This is communicated along with what benefits your offering has for the customer. In addition, it should be uniformly expressed across your online channels. Furthermore, your OVP should reinforce core brand values.

Digital channels

Remember the speak component of the 5s objectives? You have to choose the appropriate medium to engage your customers. Each digital channel is more appropriate for certain types of businesses and customer. Social media channels like Facebook and Instagram are great to engage younger audiences and say entertainment businesses. Likewise, for better search engine visibility, you might optimize your website. However, if you want to build a professional network, you might opt for LinkedIn. Other digital channels include Email marketing, native advertising and so on.

The PRACE framework

Whatever digital channel you decide to focus on, one useful framework is the PRACE framework. Certainly, you can structure your digital channel communication strategy around PRACE.

Plan – This includes managing your channels, your business reputation and creating a content strategy.

Reach – Here, the focus is on increasing brand visibility and reach of posted content.

Act – When it comes to online channels, engagement is key. You must encourage participation on your channels. Whether it is in the form of likes, comments or sharing of posts.

Convert – Your engagements on your platforms should translate ultimately to leads and sales. You should not ignore your conversion rates.

Engage – Continous engagement is important. All through the framework, you should always communicate with the customers.

Other Factors to consider in setting up business objectives

You have followed the SOSTAC model, identified your target audience and identified your channels. What are some other factors involved in goal setting for business development?

Budget

First, you should know your overall marketing budget. In addition, know what resources you are allocating to each digital channel. Moreover, you should also know what ROI is expected from your budget.

Talent/Human Resource

Second, do you need a professional digital marketing agency? Or you would work with an in-house team?

Competitor Benchmarking

Furthermore, do not forget to keep up with industry trends. Each year, customer’s tastes and trends change. In addition, you need to monitor what channels your competitors are using and what offers they give.

Monitor Key Performance Indices

Finally, do you recall the Control aspect of the SOSTAC model? Monitoring your metrics and performance indices are necessary. This will inform you on time if your goals are being met. Consequently, you can quickly adjust your planning and implementations.

 Conclusion

Goal setting for business development can indeed be a foundation for growing your business if done properly. If you ensure this, more than half of the work is done. From situation analysis, setting objectives, audience segmentation, identifying digital channels to use all through to control measures, following through can take your business to a new level.