Flexible Goal Setting for Small Businesses
As a small business owner, setting goals can be a daunting task. You want to create a clear vision for your company's future, but the reality of running a business often means dealing with unexpected challenges and constraints that can make those lofty goals feel out of reach.
In this blog post, we'll explore a more flexible approach to goal setting that can help you stay motivated and on track, even when life and business don't go according to plan. By focusing on actionable steps and adapting your goals as needed, you can make steady progress towards your desired outcomes without getting bogged down by rigid targets.
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Understanding the Limitations of Traditional Goal Setting
Traditional goal setting often involves setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives. While this framework can be helpful in some situations, it doesn't always account for the unique challenges and constraints that small business owners face.
There are several key issues with the traditional goal-setting approach:
Unrealistic Expectations: It can be difficult to know what a "realistic" goal looks like, especially when you're tackling something new or dealing with unpredictable factors in your life and business.
Discouragement and Disappointment: When you don't hit your goals as quickly as you'd hoped, it can be easy to feel like a failure, which can actually make it harder to keep pushing forward.
Lack of Actionable Steps: Setting a high-level goal doesn't automatically tell you what you need to do on a day-to-day basis to achieve it. You still have to figure out the specific actions and tasks required to get there.
So, if traditional goal setting isn't always the best fit for small businesses, what's the alternative? Enter the concept of "flexible goal setting."
Embracing a Flexible Approach to Goal Setting
The core idea behind flexible goal setting is to shift your mindset from rigid, outcome-focused goals to a more adaptable, process-oriented approach. Instead of fixating on a specific end result, you focus on taking the right actions and making steady progress in the right direction.
Goals are fine if they help you. If they're motivating that's great!
But what I think is much more important is focusing on the actions you take day in and day out and it is what you do that makes your business happen, not what you hope or dream.
So with that in mind, here are some key principles of the flexible goal setting approach:
1. Set Guiding Principles, Not Strict Targets
Rather than locking in a specific numerical target or deadline, think of your goals as a general direction or guiding principle for your business. This could be something like "Increase my monthly revenue by 20%" or "Achieve more flexibility and freedom in my schedule."
The beauty of this approach is that it gives you the freedom to adapt and adjust as needed, without feeling like you've failed if you don't hit a rigid target. Personally, I prefer to think of goals as really just setting the direction I want to go towards.
2. Break Down Goals into Manageable Projects
Instead of focusing on a single, overarching goal, break it down into a series of smaller, more actionable projects. This makes the path forward feel much more tangible and achievable.
For example, if your guiding principle is to increase revenue by 20%, you might create projects like:
Develop a new signature offer
Improve your customer onboarding process
Implement a more effective email marketing strategy
By tackling these projects one by one, you can make steady progress towards your broader goal without getting overwhelmed.
3. Embrace Adaptability and Flexibility
When you're running a small business, life and circumstances can change quickly. That's why it's important to maintain a flexible mindset and be willing to adjust your goals and plans as needed.
You do not know what life and business are going to look like 5, 10, 15 years down the line. And it would be really challenging if you locked into a certain goal and didn't give yourself space to adapt how you're getting there and even what that goal is as life in business evolves.
Rather than clinging to a specific outcome, focus on the direction you want to go and be open to taking detours or finding alternative routes to get there.
4. Prioritize Action Over Perfection
One of the biggest traps small business owners can fall into is getting stuck in the planning and ideation phase, rather than taking concrete action.
Instead of waiting for the "perfect" plan or the "right" time to act, focus on taking small, imperfect steps forward. You can always course-correct and refine your approach as you go.
5. Let Go of the Sunk Cost Fallacy
It's easy to get attached to the things we've invested a lot of time, money, and effort into, even if they're no longer serving us. This is known as the sunk cost fallacy, and it can hold us back from making the bold decisions necessary for growth.
For me, this looked like retiring nine of my previously quite successful and popular courses earlier this year because they were no longer aligned with the business I wanted to be building. By letting go of those “sunk costs”, I was able to free up my time, energy, and focus to work on other things that helped me move my business in the right direction.
If you have existing products, services, or processes that are no longer aligned with your goals, don't be afraid to retire or replace them. Trust that you have the skills and knowledge to create something better.
Putting Flexible Goal Setting into Practice
Now that you understand the key principles of flexible goal setting, let's dive into how you can put this approach into practice in your own small business.
Step 1: Reflect on Your Guiding Principles
Start by taking a step back and reflecting on the big-picture vision for your business. What are the core values, priorities, and outcomes that are most important to you? These will serve as your guiding principles as you set more specific goals and projects.
Some questions to consider:
What does "success" look like for your business?
What kind of lifestyle and work-life balance do you want to achieve?
What are the key challenges or constraints you're currently facing?
What are your long-term aspirations for your business and your life?
As you reflect on these questions, jot down your key guiding principles. These will serve as the foundation for your flexible goal setting process.
Step 2: Brainstorm Potential Projects
Next, start brainstorming a list of potential projects or initiatives that could help you move closer to your guiding principles. Don't worry about prioritizing or sequencing them yet - just get all your ideas down on paper.
Some examples of projects you might consider:
Developing a new signature offer or product
Improving your customer onboarding and retention processes
Implementing a more effective content marketing strategy
Streamlining your operations and workflows
Diversifying your income streams
Increasing your visibility and authority in your industry
As you brainstorm, consider how you might leverage some of my favorite free resources like the Life-First Business Assessment, Unsticking Tricks Guide, or Digital Products Unlocked Podcast.
Step 3: Prioritize and Sequence Your Projects
Once you have a solid list of potential projects, it's time to start prioritizing and sequencing them.
Consider factors like:
Which projects will have the biggest impact on moving you towards your guiding principles?
Which projects are the most feasible and achievable given your current resources and constraints?
Which projects need to be completed before you can tackle others?
Which projects will give you the most momentum and motivation to keep going?
Rank your projects in order of priority, and then start mapping out a rough timeline for tackling them. Remember, this is a flexible plan - you can (and should) adjust it as needed based on changing circumstances.
Step 4: Break Down Your Projects into Actionable Steps
For each of your priority projects, take the time to break them down into specific, actionable steps. This will help you stay focused and make steady progress, rather than getting bogged down in the big-picture goal.
Step 5: Review and Adjust as Needed
Finally, remember that your flexible goal setting plan is just that - flexible. As you start taking action and making progress, be prepared to review and adjust your projects, timelines, and priorities as needed.
Check in with yourself regularly to assess what's working, what's not, and what might need to change. Don't be afraid to let go of projects or goals that are no longer serving you, even if you've invested a lot of time and effort into them. As Michelle says, "embracing the sunk cost fallacy" can be a powerful way to free up resources and focus on what truly matters.
Conclusion: Embracing the Flexible Mindset
Flexible goal setting isn't about abandoning goals altogether - it's about adopting a more adaptable, process-oriented approach that can help you navigate the unique challenges and constraints of running a small business.
By focusing on guiding principles, breaking down your goals into manageable projects, and staying open to change, you can make steady progress towards your desired outcomes without getting bogged down by rigid targets or unrealistic expectations.
Remember, the key is to trust yourself, take imperfect action, and be willing to adjust your course as needed.
