Developing, Setting, And Achieving Goals In Business
Today, let’s focus on medium-term goals for a business. Because getting business goal setting right means one thing.
And that thing is making more money!
So, I would like to share my favorite examples of medium-term business goals. Also, the traits of good medium-term objectives for businesses.
Then finally, how to develop, set, and achieve your business goals to ensure success.
The success of what? Your business of course. So, let’s get started…
Disclosure: At no cost to you, I may get commissions for purchases made through links in this post.
5 Examples Of Medium-Term Goals For A Business
Here are 5 examples of medium-term business goals. That every business should consider implementing as part of business planning.
- Increase market share
- Develop a new product or service
- Reduce costs
- Implement an employee program
- Increase shareholder value
These goals are perfect for a medium-term business plan exercise. So, we will discuss each of these business goals in more detail in a moment.
But first, let define exactly what a medium-term business goal is.
What Are Medium-Term Goals For A Business?
First of all, a goal is a desired outcome. In this case, the outcome is related to your business.
Furthermore, business goals should be time-based. In the case of medium-term business goals, they should be achievable within one to five years.
Finally, medium-term business goals go by several different names. Those names are:
- Intermediate-term business goals
- Mid-term business goals
- Mid-range business goals
- 5-year business goals
So, do not let the different names throw you. They all refer to the same thing.
Specifically, today’s topic: medium-term goals for a business.
Next, let’s talk a little more about some of my favorite examples of mid-term business goals.
Medium-Term Goals For A Business: Example #1 – Increase Market Share
Our first small business goal. Or, big business for that matter. Is to increase market share.
First of all, market share is the portion of total sales that a business controls of a particular market.
A market can be defined very broadly. For example, an entire industry.
Or it can be defined narrowly. Such as a single product or product line.
Regardless, the market indicates the revenue opportunity for a business. And their share suggests how successful the company is at penetrating its target market.
There are a variety of ways to increase market share. Some examples include:
- Decreasing prices
- Increasing advertising
- Improving product performance
- Acquiring competitors
But a word of caution is in order. Because increasing market share almost always comes with a cost.
Thus, your business analysis must indicate a higher market share means either higher profit now. Or, higher profits in the future.
Since there is little reason to grow market share. If it doesn’t increase profits either in the short term. Or, in the long-term.
Here is another productive mid-range goal for a business…
Medium-Term Goals For A Business: Example #2 – Develop A New Product Or Service
Innovation and the development of new products and services are important for all businesses. Because it is unwise to stand still.
Offer the same products and services year after year? Then sooner or later your competitors will catch you.
So, look for ways to test the boundaries of what you do today. Some ways to innovate include:
- Add a new feature to an existing product
- Analyze your competitor’s products
- Take note of customer feedback
- Probe your suppliers for ideas
On the other hand, don’t stray too far from your core competencies. Because innovation has a cost.
And sometimes the biggest cost is this. Distraction from what you do well. And what makes money today.
That’s why it is important to have a well-defined value proposition. This just means you are clear on your target markets and customers.
And exactly how you can serve those markets and customers better. Through innovation.
Here is another one of my favorite intermediate-term goals for business…
Medium-Term Goals For A Business: Example #3 – Reduce Costs
Every business should strive to be more cost-efficient. But this doesn’t necessarily mean being the low-cost producer in your industry or business.
So, make your business’s cost structure consistent with its business strategy.
For example a high-end producer of fashionable women’s clothes. Will not produce at a lower cost than a company making generic sweat pants.
So look at your toughest competitors. And set a medium-term business goal to be lower cost.
In other words, be the low-cost producer. Relative to your competition.
You may even want to consider relocating to a low-tax state. So your business keeps. More of the money it makes.
Notice that most small businesses have goals that require money. Or investment associated with them.
So, by reducing costs. You may be able to fund some of your other business goal initiatives.
Here’s another suggestion to reduce costs. Because if you make online purchases. Then save money on everything you buy with Rakuten.
Rakuten offers electronic cash rebates for buying things you need anyway! So, it is money in your business’s pocket!
You can learn about Rakuten here. Plus, it works fine for any personal purchases you make too.
Next up in our examples of mid-term business goals? Your employees.
Medium-Term Goals For A Business: Example #4 – Implement An Employee Program
A successful business will grow over the medium-term goal-setting time frame. As it does, employees and their contributions become more important.
This means having an effective employee program. This is an important mid-term business goal.
A good employee program should be comprehensive. And this doesn’t happen instantly. That’s why effective employee programs are good mid-term business goals.
Here are some elements you may want to include in an employee program:
Hiring: Finding the best talent and fit for your business.
Onboarding: Bringing new employees on in a welcoming and productive manner.
Training and development: Putting processes in place to make staff better and more productive.
Incentives: Setting up the right financial and non-financial rewards.
Satisfaction: Keeping them happy and building a great culture of teamwork.
Retention: Making sure the best employees stick around for the long term.
Okay. Here’s the last example of a medium-term business goal…
Medium-Term Goals For A Business: Example #5 – Increase Shareholder Value
Most businesses exist for 1 reason. That reason is to increase shareholder value. Or, put another way, increasing the overall value of a business.
Furthermore, shareholder value encompasses all of the things we have discussed so far. Plus, many more. For example, the cash flow your business produces.
How do you measure shareholder value? Simply put, it’s whatever a 3rd party is willing to pay for your business.
How do you increase shareholder value? Well, mainly by running your business better every day.
More specifically, here are some elements that increase shareholder value:
- Unique products
- Proprietary processes
- Current profits
- Expectations for future profit growth
- Experienced management
- Talented employees
- Utilization of technology
- Operating in a business-friendly state
- Valuable real estate
By knowing what increases the value of businesses in your industry. Then pursuing those things effectively.
Many other intermediate goals for a small business may surface. To further your business planning efforts.
And, in the event, you sell your business someday. You want the value to be as high as possible.
You also want to make sure your personal finances are separate from your business finances. So, I use Personal Capital to pull all of my personal finances together in 1 place online.
It’s a great tool. And best of all Personal Capital is free to sign up and use.
Okay. That concludes our discussion about some of my favorite 1-5 year business goals.
Next, I want to share a few other important points on the topic of business goal setting.
Short-Term Goals Vs. Mid-Term Goals For A Business
As I mentioned earlier, a business goal should be time-based. And medium-term business goals examples should be accomplished within 1 to 5 years.
In contrast, the best short-term business goals should be completed within 1 year. And be focused on 1 of 2 things.
First, solving serious business problems. They make for great short-term goals.
For example, if your on-time delivery record is 85%. And you are losing business. Because all of your competitors are offering customer service running 99% on-time delivery.
Then set a short-term goal to get your on-time delivery fixed.
In addition, good short-term goals are useful for creating a foundation for long-term success.
For example, every business should have a business plan. So, set a short-term goal to create a long-term business plan.
Long-Term Goals Vs. Intermediate-Term Goals For A Business
So now you know that short-term business goals should be completed within a year. And medium-term business goals should be completed within 1-5 years.
This leads us to what? Long-term business goals. Plan to complete these goals in more than 5-years.
So long-term business goals are those challenging outcomes. That will take many years to achieve.
Plus require having a solid plan in place. To achieve the long-term goal.
Let’s go back to market share. And use it as an example.
Perhaps your business has a 10% market share. And you have set a goal to increase to 20% in 3 years.
So, based on the time frame. This is a medium-term business goal.
But you can also make a long-term goal out of it. How about dominate your market and achieve a 55% market share.
You know that will take a long time to accomplish. So make achieving 55% market share a long-term business goal.
Here’s another business goal-setting topic I want you to know about…
Make Your Intermediate-Term Goals For Business Balanced
As you work through the intermediate goals for a business. Make sure to keep your goals balanced.
In other words, your business goals should be well-rounded. Because if you are like me, you want your business to make more money.
So, it’s easy to fall into the trap of making all of your business goals financial in nature. Don’t do that.
Make your business goals balanced. To do so, consider the balanced scorecard approach.
The Balanced Score Card For Business Goal Setting
The balanced scorecard suggests your business goals should encompass the following 4 categories:
- Internal processes
- Innovation, growth, and development
Let’s see how I did with the 5 goals I suggested.
Business Goal #1: Increase market share. This is a customer satisfaction-oriented business goal.
Business Goal #2: Develop a new product or service. This goal is about innovation. And also meeting customer needs better.
Business Goal #3: Reduce costs. This is one of many potential financial goals. But its elements will encompass internal processes too.
Business Goal #4: Implement an employee plan. This involves both internal processes. And growth and development.
Business Goal #5: Increase shareholder value. Our last medium-term goal example is a financial goal.
Next, I want to talk about some other important aspects. That each of your goals should possess.
How To Set Mid-Term Business Goals
Setting business goals is not that different from setting other goals in life.
Yes. The outcomes are different. But the goal-setting process should be the same.
Goal setting for business owners means using the SMART goal setting system. It is the process I recommend.
Specific. Be as detailed as possible when establishing your goals. Define the exact outcome you want to achieve.
Measurable. Determine how you will measure success. Then make your goals measurable. So you will know when your company has arrived at the outcome you desire.
Achievable. Don’t waste your time setting goals that aren’t achievable.
Yes. You want to stretch yourself. But, don’t overdo it.
Realistic. A goal may be achievable. But it may not be realistic.
For example, developing a new product may be achievable. But if it will take $100,000. And your business can not afford that amount. Then the goal is not realistic.
Time-Bound. Finally, every goal should have a deadline. For when it must be completed.
For medium-term business goals. We already know the deadline should be within 1 to 5 years.
Next, how to achieve business goals.
How To Achieve Medium-Term Business Goals
To achieve your business goals. I suggest a few simple steps.
Write Down Your Business Goals
First, write them down.
Studies have shown goals that are written. Have a much higher success rate. Versus goals that are not documented in writing.
The SMART goal-setting system will help you here. Go through each SMART goal requirement. And write down the results of your efforts as you go.
Make A Plan For Each Business Goal
Because medium-term business goals take more than a year to complete. They tend to be more involved.
Having a plan will increase the odds of success. Just pick up where you left off when documenting your goals using the SMART system.
Some things to include in your goal planning are:
Accountability. Who is responsible for making sure the goal is achieved.
Milestones. Determine how you will know if you are on track. By establishing interim progress check-points.
Furthermore, start on goals at an early stage. Right after they are set. And monitor performance throughout.
Resources. Determine who needs to be involved. And if any out-of-pocket costs are necessary.
When it comes to resources. It’s important to note that some goals may require outside funds
So, if you need financing. Consider a small business loan from LendingTree. They are easy to work with. And, have very competitive rates.
You can learn more about LendingTree here.
Set Key Performance Indicators (KPIs) For Your Goals
KPIs are performance measurements. They can be financial. Or, KPIs can be non-financial too.
They measure important business activities. Also, they indicate the results of your employee’s efforts.
What type of activities and efforts? Specifically, those tasks and efforts that deliver results for the business goals you desire to achieve.
For example, if increasing market share by 5% is the goal. Perhaps you determine that 10 extra sales calls per week for the next two years will accomplish the outcome.
So, the KPI is sales calls. Then be sure to measure and report the number of sales calls every week.
Okay. That’s it for today.
We have covered a lot. So, let’s wrap up with a summary.
Summary: Goals For Business Examples & How To Set Them
A medium-term business goal is a desired outcome to be accomplished within 1 to 5 years.
They are contrasted with short-term business goals. Those goals to be achieved within 1 year.
And long-term business goals. They require more than 5-years to complete.
Then we have 5 good medium-term objectives examples for a business:
- Increase market share
- Develop a new product or service
- Reduce costs
- Implement an employee program
- Increase shareholder value
Furthermore, your business goals. Or any type of goal for that matter should be a SMART goal.
A SMART goal is:
Finally, to achieve your goals:
- Write your goals down
- Create a plan
- Establish and measure KPIs
Now it’s time to get to work on your medium-term goals for a business.
More Reading About Setting And Achieving Goals
- All of our business and personal finance articles
- Best financial goals to hit by 40
- Top financial planning tips before 50
Some Of My Favorite Finance Resources
I mentioned several resources throughout the article. They are helpful for attaining both your individual financial goals. And your business goals.
So, I summarized them here for your convenience.
|Save money on online purchases with Rakuten|
|Get a personal or business loan from LendingTree|
|Separate your personal & business finances with Personal Capital|
Disclosure & Disclaimer
This article, or any of the articles referenced here, is not intended to be investment advice specific to your situation. I am not a licensed investment adviser, and I am not providing you with individual investment advice. The only purpose of this site is information & entertainment. We are not liable for any losses suffered by any party because of information published on this blog. See this site’s Disclaimer and Privacy tab for more information.