Brian Tracy said, “Your goals are the measurable objectives you must attain to fulfill your mission and purpose and realize your vision. They are the targets you aim at. Each goal must include performance measures, or benchmarks. These numbers allow you to clearly determine whether you are moving closer to your goals or further away(Tracy, p. 110 & 111).” For the business owner, all goals for your company should in some way lead to increasing its value. I suggest the following goals to increase your company’s value in 2016.
- Determine the current value– This is the starting point. How can you work toward a future value if the current value is unknown.
- Decide on the future value– There must be a value to work toward that is unique to each owner and their individual needs.
- Determine the time line to reach the value goal– A time line forces action.
- Set the 2016 minimum pre-tax profit level– An adequate and growing pre-tax profit is a sign of a healthy company. Take this number seriously. Set the minimum at 10% and preferably higher.
- Set the 2016 cash increase goal– Cash must increase and flow along with the improvement in profits. Without cash, everything comes to a halt. How much? Here is a start and a minimum. If you don’t already , determine that your goal will be to have at least two months worth of operating expenses in a cash account set aside as emergency cash.
The above is just a minimum and a beginning. They will lead to other goals that support their achievement. To make all of the goal setting effective, measure actual performance versus the goals daily, weekly, and monthly.
Set and commit to your goals to increase the value of your company. “Successful people think about their goals and how they can achieve them most of the time(Tracy, p.69 & 70).”
*Tracy, Brian, (2002), Focal Point