Whenever a business set an aim or goal, if it isn’t clear, measurable and realistic, it remains just a “wish”. To overcome this “SMART framework” guides businesses in determining effective practical and result-oriented goals.
SMART is an acronym that stands for:
- S – Specific
- M – Measurable
- A – Achievable
- R – Relevant
- T – Time-bound
1: SPECIFIC:
The goal must be clear, short and easy to understand. While setting a goal for business ensure it is not vague or generic. Many businesses say they want to be successful. But the word “success” can mean different things for different people. While setting a goal, your mind must be clear on “What you want, why you want and How will you do?”
For Instance: To boost our sales, we aim to increase our daily traffic from 500 to 1000 on our website over the next three years.
Including clarity, a defined timeline and a clear purpose in your goal helps in setting a specific direction, which is the first step of SMART framework.
2: MEASUREABLE:
A business cannot know whether it’s making progress, until the goal is measurable. Suppose a business claims it wants to improve customer satisfaction but “By how much?”. A business cannot measure its success effectively without specific metrics. Tracking metrics in a goal like percentage, numbers, surveys, revenue, followers help in measuring the progress of business.
For Example: Instead of vaguely saying “We want to generate more revenue.” a business should say “We aim to increase our sales by 20% over the next 6 month.”
3: ACHIEVEABLE:
A goal that isn’t achievable leads to demotivation in a team or business. Goal should represent progress, not failure. The goal which a business set, should be motivating and inspiring but not too difficult that it seems impossible to achieve. If a business is just starting out and sets a goal like: “We’ll earn 1 lac in a month” It may be unrealistic.
A more practical approach would be: “We aim to get 15 orders per week which would help us complete 60+ orders in a month.” Setting realistic goals makes it easier to achieve them.
4: RELEVANT:
Every goal a business set must be relevant to its strategy and growth. Setting an irrelevant goal in a business leads to confusion and even failure. The goal should align to the overall vision and strategy of business.
For Example: If a business deals in women’s clothing but plans to participate in a gaming competition then the business just set an irrelevant goal.
Rather it should aim: We’ll collaborate with fashion bloggers to increase our online visibility for seasonal clothing.
A good goal should be aligned with the business’s mission, vision, products, and services to ensure relevance and focus.
5: TIME BOUND:
Setting a time bound goal is crucial as it keeps one focused and motivated on achieving it. A goal can lost its urgency and direction without a clear deadline. The deadline to meet the goal must be determined so that it doesn’t remain open-ended.
For Example, saying: We’ll increase our presence in social media” lacks clarity about When and How. Instead, state: We’ll post 15 new Instagram reels over the next month to reach 2000 users.
Adding a time-bound element to your goal creates positive pressure, which drives action rather than procrastination.
A Complete Example of SMART Goal:
To increase our Shopify sales by 30%, we’ll run three paid email campaigns, Collaborate with Influencers and launch Google Ads within the next 90 days. So that our revenue increases and repeat buyers expands.
This example covers the all elements of SMART goal: Its Specific and understandable, Measurable with a 30% target, Achievable within a realistic time, Relevant to business growth, Time-bound with a 90-day deadline. All these elements together result in business success.