Defining Milestones for the Business Owner

By: Ashley Louw, Devils Lake Business Advisor

According to a blog at UpMetrics.com, 20 percent of business start-ups fail within the first year. That number increases to 50 percent by year five. Setting up a solid plan along with realistic goals can help deter this trend and keep a business owner accountable, rather than becoming another statistic.

A business plan should not only be a document provided to a lender. It should be referenced regularly to ensure the business owner remains on track to meet initial goals and updated as the business evolves and priorities change.

Setting SMART Goals

• Specific: Clearly define the goal
• Measurable: Include a way to measure progress and success
• Achievable: Ensure the goal is realistic and manageable
• Relevant: Confirm the goal contributes to a larger business objective
• Time-bound: Set a clear timeframe for completion

Goals without a defined timeframe make it difficult to guide a business in a clear direction. Strategies need to be established and followed. This includes describing milestones, setting due dates, identifying budgets, and determining who is responsible for each milestone and the steps required to achieve it.

Using Milestones to Stay on Track

Milestones can be created for any timeframe, but it is recommended to keep them manageable. As a business advisor, I often encourage clients to focus on goals that can realistically be achieved between now and year three. Longer-term goals are still important to acknowledge, but they often require multiple milestones along the way.

Concentrating on the steps needed to move from start to finish helps maintain momentum. Working backwards is often referenced as an effective planning method. Another way to keep goals present and accountable is to clearly communicate milestones and the intent behind them. Involving business partners, investors, or even staff, when appropriate, can help ensure milestones are achieved and progress stays on track.

If you would like assistance setting meaningful goals, developing milestones, or updating your business plan, an ND SBDC advisor is available to help. Our advising services are confidential and provided at no cost. We encourage you to reach out to your local ND SBDC advisor to support you at any stage of your business journey.