Why defining what success means to you could be a game-changer for your business
No entrepreneur starts their journey without being hungry for success. But what does success really mean? Many think of success as something that is defined in financial terms, but while building a profitable business is certainly one way to define success, it’s not the only way it can be measured. Determining what success means to you could give you the impetus you need to start taking constructive action as a business owner.
Start with smart goal setting.
When it comes to goal setting, one of the most referenced acronyms is S.M.A.R.T – which stands for “Specific, Measurable, Assignable, Realistic and Time-related”. The Smart system of goal setting can be traced from 1981, when a consultant and company director by the name of George T Doran published a paper titled: “There’s a S.M.A.R.T. Way to Write Management's Goals and Objectives”.
Since then, the system has been used to illustrate how goals and objectives should be set in a company of any size, including small businesses. For many existing and aspiring entrepreneurs, using the reference system has proved effective.
The gist of it is that goals should be set and defined in a way that meets all five criteria, as opposed to working towards goals that are nebulous or wishy-washy. To the point, aiming to be successful is simply not enough to establish a goal that can be worked towards in a practical way. By using the Smart criteria, entrepreneurs can create clear, actionable and realistic goals that lay out a concrete roadmap for growth and can ensure that every effort is directed towards tangible outcomes rather than vague aspirations.
Defining success as a business owner
The way you define what success means as a business owner will be personal and unique to your business and what you want to achieve in the long-term. For some, success means revenue growth or return on investment. For others, becoming successful means being able to build a brand that becomes synonymous with a certain product or service and that has earned a strong market presence. Success could also mean high levels of customer satisfaction, in which case this could be measured by customer loyalty, customer retention and positive feedback.
For social entrepreneurs, a good measurement of success could be their ability to innovate and make a meaningful impact, whether through using disruptive technologies, solving pressing social issues or contributing to charitable causes. There are also business owners who define success as personal fulfilment and being able to maintain a work-life balance while achieving personal goals and visions.
Another way of defining success is through growth and scalability – which is often the case in high-growth start-ups who want to enter new geographical territories and markets. Some even define success as team development and being able to build a strong, high performing and well-rounded team that operates within a healthy, positive company culture.
Why defining success is critical
Knowing what success means to you could be crucial to maintaining motivation and focus. The early years of running a business can be gruelling – they usually involve many late nights, stressful situations and complex challenges. During the daunting time, having a clear goal to work towards can lay the foundation for strategic planning and decision-making, reducing the risk of distractions.
Without a solid definition of success, you also will not be able to measure your progress and performance in any real and tangible way. Knowing what it means will give you a good idea of whether you are on track to accomplishing what you have set out to do and allow you to catch yourself when you drift off-course.
Defining success is also imperative to resource allocation, knowing what you’re working towards will give you a more accurate idea of what you need to get the job done. Employing the right people, managing your time and investing the right amount of money in the right areas becomes easier when you have a clear vision.
The benchmarks you set for success will also provide you with an all-important reference point that you can check-in on regularly. This will, in turn, help you to build a business that is more adaptable and resilient, which is crucial in times of change and market volatility.
Once you’ve defined success and communicated this to all your stakeholders, you can manage the expectations of your investors, employees, family and business partners. This could go a long way in fostering transparency, building trust and making sure that everyone who is invested in your success is aligned and working towards the same goals.
Whatever success means to you, defining it, writing it down and employing single-minded focus towards achieving it are key to reaching important milestones and making real, meaningful progress.
Ben Bierman is the managing director of Business Partners.
BUSINESS REPORT