If you’re a small business owner, chances are you’re juggling more than a few plates—sales, operations, team management, and finances. Amid this whirlwind, it’s easy to get caught in the daily grind and lose sight of the bigger picture. That’s where the power of intentional goal setting comes in.
“Goals without deadlines aren’t goals. They’re merely directions.” — Shane Spiers
But what is goal setting, really? It’s more than just writing down what you want. It’s about creating a roadmap that transforms vision into reality. And when done well, goal setting becomes the engine that drives your business forward—clear, focused, and purpose-driven.
In this post, we’ll explore what goal setting is, what the research says, the benefits and pitfalls, goal-setting frameworks that actually work, plus 10 goal-setting tips to help you apply it all.
What is Goal Setting?
In simple terms, goal setting is the process of identifying something you want to achieve and establishing measurable steps to get there.
In business, this might be:
- Increasing monthly recurring revenue by 25%
- Hiring two new team members within three months
- Reducing customer churn by 10% over the next year
The key? Goals translate vague intentions (“We want to grow”) into concrete targets (“We’ll grow by £50,000 in Q3 via new digital product sales”).
What Does the Research Say?
Plenty.
A now-famous study by Dr. Gail Matthews at Dominican University found that people who write down their goals are 42% more likely to achieve them. But it doesn’t stop there.
- Harvard Business School notes that only 3% of graduates who wrote clear, written goals earned 10x more than their peers a decade later.
- Locke and Latham’s Goal-Setting Theory shows that specific and challenging goals lead to higher performance 90% of the time compared to vague or easy goals.
Bottom line? Goals work. But only when they’re clear, committed to, and regularly revisited.
Benefits of Goal Setting for Business Owners
Let’s get specific. Here are just a few reasons why goal setting is not only worthwhile, but vital:
- Direction and Focus: Goals cut through the noise. When everything feels urgent, goals remind you what’s important.
- Increased Motivation: Having a goal gives your team something to rally around. It creates a sense of purpose, and progress becomes measurable.
- Improved Decision-Making: A clear goal becomes your filter. Should you take that opportunity? If it doesn’t align with the goal, skip it.
- Accountability and Momentum: What gets measured gets managed. Goals create a natural feedback loop. You track, tweak, and improve.
- Celebration and Morale: Hitting a goal feels good, and shared wins are powerful culture-builders.
Problems with Goal Setting
But here’s the rub: not all goals are created equal. When goal setting goes wrong, it can cause confusion, frustration, and burnout.
Common pitfalls include:
- Setting vague goals: “I want to grow my business” isn’t a goal—it’s a wish
- No alignment with vision: Goals that don’t support the long-term mission can lead to wasted effort.
- Lack of flexibility: Clinging to goals even when the situation changes.
- Fear of failure: Some avoid ambitious goals to protect themselves from disappointment.
- Setting too many goals at once: Too many goals at once can dilute focus and hinder execution.
- Failing to follow through: Goals are set, then forgotten amidst day-to-day demands
In short, goals without strategy and follow-up are just wishes with a deadline.
Goal Setting Frameworks that Work
There are several alternative methods of setting goals. Here are a few of my favourites in a business context:
1. SMART Goals
You’ve probably heard of SMART goals—but the key isn’t the acronym. It’s about aligning ambition with action.
Here’s a streamlined approach:
- Be Specific: What exactly do you want to achieve?
- Make it Measurable: How will you track progress?
- Ensure it’s Attainable: Is it realistic with current resources?
- Make it Relevant: Does it align with your bigger business vision?
- Time-bound: When will it be achieved?
Bonus tip: Focus on both lead indicators (actions you take) and lag indicators (results you get). E.g., if your goal is to increase sales, track calls made as well as deals closed.
2. OKRs (Objectives and Key Results)
Popularised by Google, this method separates what you want to achieve from how you’ll measure success.
- Objective – A qualitative, ambitious statement of what you want to achieve.
- Key Results – 2–5 measurable outcomes that show you’ve achieved the objective.
Example:
- Objective: Improve customer satisfaction.
- Key Results:
- Achieve a Net Promoter Score (NPS) of 70+
- Reduce support ticket resolution time to under 2 hours
Use it when: You’re scaling a business or aligning teams to stretch goals.
3. Backwards Goal Setting
Start with the end in mind and reverse-engineer the steps to get there.
- Define the ideal outcome (e.g., “Sell my business for £5M in 5 years”)
- Identify the major milestones backwards from that point
- Break each milestone into actionable steps
Use it when: You have a clear long-term vision but need a roadmap.
4. Vision-Based Goal Setting
Rather than anchoring in measurables first, start with an inspiring vision.
- Write a vivid description of your ideal business/life 3–5 years from now.
- Identify key themes (e.g., flexibility, team culture, financial security).
- Create outcome statements and strategic focuses around those themes.
Use it when: You’re in a visionary or transitional phase and want purpose-driven direction.
5. The 3-Word Goal
This ultra-simple method involves limiting your focus to three keywords that represent your guiding principles or intentions for a period of time.
Example: “Simplify. Connect. Grow.”
Use it when: You’re overwhelmed and need clarity or want to influence mindset more than metrics.
6. Daily Systems Over Goals (James Clear’s Atomic Habits approach)
This flips traditional goal setting on its head:
- Instead of focusing on an end goal, focus on the process and daily actions.
- Build identity-based habits (e.g., “Be the kind of person who…”).
Use it when: You want to embed sustainable habits or avoid burnout from goal-chasing.
7. The One Word Theme
Choose a single word to guide your decisions and focus for the year (e.g., “Momentum,” “Balance,” or “Breakthrough”).
Use it when: You want to set a tone or principle for the year rather than fixed targets.
Each of these goal-setting frameworks offers different strengths—some are more structured, others more intuitive or motivational. The key is to choose the method that matches your business stage, personality, and priorities.
10 Goal-Setting Tips for Business Owners
- Start with your vision – Let your long-term vision shape your short-term goals.
- Prioritise ruthlessly – Focus on 1-3 key goals per quarter.
- Time-block your priorities – Allocate calendar time for goal-related tasks.
- Use visuals – Whiteboards, dashboards, or digital trackers make goals tangible.
- Set both outcome and process goals – “Increase revenue” (outcome) + “Make 5 sales calls daily” (process).
- Share goals with your team – Builds accountability and shared ownership.
- Review weekly – Ask: What worked? What didn’t? What’s next?
- Be flexible – Pivot when needed, but don’t abandon the goal unless it’s obsolete.
- Use tools – Leverage software like Trello, Asana, or ClickUp to stay organised.
- Reflect and reset – End each quarter by reviewing achievements and setting new goals.
Goal-Setting Examples from Real Businesses
Jane, an e-commerce owner, set a goal to increase email subscribers by 25% in 60 days using lead magnets and popups. She exceeded it in 45 days.
Tom, a consultant, aimed to generate £10k/month in recurring revenue by packaging his services into monthly retainers. Within six months, he had three retainer clients and consistent cash flow.
Anne-Marie, a local café owner, set a goal to reduce food waste by 30% using data from a new inventory system. This not only cut costs but boosted her sustainability rating and attracted eco-conscious customers.
Conclusion: Goals Drive Growth
Effective goal setting isn’t about adding pressure—it’s about providing direction. When you know where you’re going, it’s easier to make smart choices, lead your team with confidence, and build a business you’re proud of.
So, take a step back. Reflect on your vision. Use the 10 goal-setting tips. Write down your goals, share them, and start taking action today.
Because the difference between a good business and a great one often lies in the clarity of its goals.
Set goals not just for your business, but for the life you want to create. That’s the ultimate return on investment.
Ready to get intentional about your business growth?
Pick one goal for the next 90 days. Write it down. Share it with someone. And take the first small step today.
Or you could have a chat with me about how business coaching can transform your goal-setting process. You can book 15 minutes on my calendar to discuss coaching here: www.TimeWithShane.com
