Formula For Success In Hitting Business Targets To Increase Business Value

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You set your business targets or goals like you’ve been told to, but you just don’t hit them! Right?

To increase the value of your business you set targets or goals to increase profitability, systemise, and reduce reliance on the business owner. Then there will be financial goals, production goals, customer satisfaction goals etc. and all kinds of Key Performance Indicators (KPIs). All of this is necessary, of course. However, why can it seem so difficult to achieve your goals?

We know we NEED to do it. We know HOW to do it and hopefully we have the RESOURCES to do it. Still we miss the target! Why? CONTACT ME if you want personalised help with this!

Years ago in business I became very frustrated over this so I tried to come up with an explanation. Then, while running one of my workshops and getting in to a discussion about this, I realised there were three important factors that came in to play. Factors to do with mindset, emotion and desire. I developed this simple formula to explain it.

PM (%) = your Personal Motivation level to achieve the goal on a scale of 0 to 100 %. If your personal motivation is up over 80% then there is a very good chance you will achieve your goal.

Here’s how to calculate your personal motivation level from these three things;

D = Desire – your level of Desire for the outcome of achieving the goal (on a scale of 1 to 10 where 10 is high). How much do you really want to achieve the goal? Is there a burning desire within you to get there? Would you climb mountains, swim oceans and overcome all obstacles to get there? A bit of an exaggeration but you know what I mean. Rate yourself 1 to 10

E + B – your Expectation and Belief that you can achieve the goal. Again, on a scale of 1 to 10, how much do you really BELIEVE and EXPECT you can get there. For example, do you have the required KNOWLEDGE, SKILLS, TRAINING, RESOURCES, CONFIDENCE, TIME, etc.? Rate yourself 1 to 10.

Now multiply the two ratings ( D x (E+B) )and the answer, as a percentage, is your personal motivation level for achieving your goal.

If your personal motivation (PM score) is up over 80% then there is a very good chance you will achieve your goal.

An example will help. Let’s say you set a goal to achieve a business turnover of more than $5 million per annum in three years. You rate your DESIRE at 10 out of 10, but your BELIEF and EXPECTATION is only a 3 out of 10. Then your personal motivation factor, and chances of achieving it are 30%.

Now that you know this, you can do any one of a number of things: delete the goal, change the goal or INCREASE your BELIEF and EXPECTATION (E+B). This is where someone like me comes in to coach, advise and motivate you to get the (E+B) up. This involves planning, training, realistic time-frames, building CONFIDENCE etc. When confidence goes up, anything is possible!

When you know where the problem is, you can work on it.

Sometimes the DESIRE to achieve the goal is just not there. May seem strange but I find often that the goal is actually someone else’s goal that the business owner feels obliged or ‘has to’ do. Once I point that out to them their attitude changes – also the goal.

Remember, we set and plan goals with LOGIC but we need EMOTION to motivate us to achieve!

As a business owner / leader you have the additional challenge of getting your whole team’s DESIRE, EXPECTATION and BELIEF up. That’s a part of LEADERSHIP!

Want to learn more about increasing the value and saleability of your business, then CONTACT ME

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John Denton

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