Most goal setting advice is written for big companies with HR teams, review cycles and OKR software. A business of five or twenty people doesn't need any of that. It needs a handful of clear goals, people who know which ones are theirs, and a simple way to see how the week went.
This guide is for the owner who does the hiring, the selling and sometimes the books, and wants the team pulling in the same direction.
Start with three business goals for the year
Pick no more than three goals for the business this year. Write each one as a SMART goal: specific, measurable, achievable, relevant and time-bound.
Good business goals are usually about one of four things:
- Customers: win, keep or grow them.
- Money: revenue, margin or cash.
- Operations: doing the work faster, better or with fewer mistakes.
- People: hiring, training or keeping good staff.
For example: "Grow monthly revenue from $60,000 to $75,000 by 31 December." "Cut quote turnaround from five days to two by 30 June." "Hire and train a second apprentice by March."
Turn them into goals people own
Business goals only move when someone works on them. Sit down with each person and agree one to three goals of their own that help the business goals. Let them write the goal in their words. People finish goals they wrote far more often than goals handed to them.
Examples by role:
| Role | Business goal | Their goal |
|---|---|---|
| Owner | Grow revenue to $75,000 a month | Meet two new referral partners each month until December |
| Sales or front desk | Grow revenue | Follow up every quote within two working days, starting this month |
| Operations | Cut quote turnaround to two days | Build a quote template for our five most common jobs by 31 March |
| Trades or service staff | Fewer call-backs | Complete the new checklist on every job, and halve call-backs by June |
| New starter | Hire and train an apprentice | Finish the first-year course modules by 30 November |
Each person's goal should be small enough to see progress within a few weeks.
Write down what the business stands for
A short list of core values, three to five words like Reliable, Friendly or Careful, gives people a way to make decisions when you're not there. Link goals to them where it fits. See Core values and goals.
Check in weekly, briefly
The difference between goals that get done and goals that get forgotten is a regular check-in. In a small business that can be as simple as three or four questions each Friday:
- How did your week go, out of 5?
- What got done on your goals?
- What got in the way?
- What's your focus next week?
It takes each person two minutes, and you can read every answer in five. You'll spot problems while they're small. See 12 check-in questions for more ideas.
Meet one on one, regularly
A 20 to 30 minute one-on-one each fortnight or month is where goals get adjusted, problems get solved and people feel heard. Let them add to the agenda before you meet, and write down what you agreed. See A one-on-one agenda that works.
Review every quarter
Every three months, look at the business goals and each person's goals together. Finish the ones that are done, reset the ones that slipped, and choose the next ones. A year is too long to wait to find out a goal was wrong.
Mistakes small businesses make
- Too many goals. Ten goals for a team of eight means none of them get attention.
- Goals only the owner knows. If they're in your head, nobody else can help.
- Setting goals in January and looking again in December. Weekly check-ins fix this.
- Copying big company systems. Ratings, forms and long reviews feel like overhead in a small team. Keep it light.
- Only noticing what went wrong. Say well done when a goal is finished.
Questions people ask
How many goals should a small business have?
Three at most for the business each year, and one to three for each person that connect to them.
Should a small business use OKRs?
You can, but most small teams don't need the extra layers. Three clear business goals, personal goals linked to them and a weekly check-in do the same job with less admin.
How often should we review goals?
Glance at them weekly in a check-in, talk about them in one-on-ones, and review them properly every quarter.
What's a good first goal for a new small business?
Usually something about customers or cash, such as "Win 10 paying customers by 30 June" or "Keep three months of costs in the bank by December".
In Lifetick
A team account gives each person their own goals, linked to your core values, and lets you send a weekly check-in, run one-on-ones with a shared agenda and see everyone's progress on the Today page and the Outcomes report. It's free for two weeks, then $4 a person each month.
See Set up your team, Set your core values, Send your first check-in and The team Outcomes report. For the bigger picture, read Goal setting at work.
Try it with your team.
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