LAST REVIEWED Jun 08 2020 8 MIN READ
By The Human Interest Team
Creating milestones is an important part of being able to meet your goals. They give you a way to gauge your progress and determine if you are staying on track. Your business and employees should create milestones in order to improve business operations. Learn about important milestones your workplace can try to meet and how you and your employees can work toward them.
Six Small Business Financial Milestones
When setting financial milestones throughout the year, your team needs to do some planning. Determine what your goals are and how you’re going to measure your progress toward them. You may want to set key performance indicators to help you evaluate the success of your efforts.
These milestones can help your small business find more success:
Create a Business Model
Your business model will likely consist of the strategies your team will use to make a profit and grow business. It includes operating procedures, marketing methods, and cost structures. Determine who your target audience is to help you decide which strategies you can use to reach them. Consider your budget while creating a business model so you can allocate money toward customer research and marketing.
After creating your business model, make sure to refer to it regularly. It can help you remember your goals and measure your progress toward them. If you find that your team is struggling to reach these goals, you may need to restructure your business model. For instance, if your business model includes marketing methods that aren’t working, you may need to look for different strategies that are more effective.
Keep Customers Coming Back
Along with gaining new customers, it’s best to think of ways to keep current ones coming back for more. Repeat customers are an important part of keeping your business alive and profitable. Building customer loyalty can help you reduce marketing costs and increase your brand’s awareness by word-of-mouth.
The number of repeat customers you should strive for depends on your business type. As a new business, your goal may be to get your first loyal customer. As the business grows, your amount of repeat customers needs to expand, as well. Set different milestones for customers as the business progresses.
Think of appropriate ways you can connect with customers after their first purchase. Rewards programs, newsletters, drip email campaigns, and regular sales are all ways you can persuade customers to check out your business again. Find ways to engage with them. Social media is a great way to connect with your target audience and keep them up to date on your brand.
Find a Marketing Strategy Unique to Your Brand
To get the word out about your brand, your business may want to create a budget for marketing to inform consumers about the products and services you offer. When setting this financial milestone, make sure you are bringing in more money than you are spending on marketing. Try to find cost-effective ways to reach as many people as possible.
Set a goal and deadline for each of your marketing campaigns. For example, the purpose of one of your campaigns could be to reach a specific number of website visitors. At the end of the campaign, look at your data to determine if you met this milestone or if you need to reallocate marketing funds elsewhere.
Hire the Best Talent
Your employees are an integral part of your business’s financial success, so include them in your list of financial milestones. As your business grows, you need employees to carry out daily operations. When you’re looking for new employees, take your time so you choose the best candidates. Look for people who can offer value to your business and have to right skills to do their job effectively.
To find the most qualified candidates, consider creating a detailed job posting that you can advertise on several websites. Include a job description that outlines the responsibilities, skills, education, experience, and other requirements for the job. Attract more talent by including what your company can offer them. Share information about your benefits, company culture, and values.
Offering a comprehensive benefits package is a great tool for employers to acquire and retain more talent. In fact, a 401(k) is one of the most requested benefits after health insurance, so see if your company can include this retirement program in your benefits package.
Once you have a good group of employees, implement additional ways to retain them. Onboarding programs for new employees can help them feel more welcome and comfortable in their new positions. Grow the business by hiring additional employees with a more specialized skill set. A well-rounded team can help you continue to meet your financial goals.
Become an Industry Thought Leader
Once you are making a steady profit and have a hardworking team, it’s time to push your business to the next level by becoming a thought leader in your industry. Start creating content that people in your industry can trust. For example, you could start a blog that discusses niche topics in your field. When fellow business leaders see that you are a credible source, you start to become an expert in your field.
Find industry-wide events to attend. For example, your team could set up a booth at a convention. This helps other businesses and customers put a face to your business. You could also have someone at your company speak at different events, sharing industry insights. These can help you get more business and may even be an extra source of revenue.
Start Making More Sales
It’s helpful to outline how you plan to bring in more sales in your business model. For this financial milestone, you need to determine the dollar amount of sales your business needs to meet. Although you can aim high, also make sure your number is realistic. Make this goal known to employees so everyone can do their part in meeting this goal. Make this goal based on financial projections and previous sales data. Remember that as the business evolves, you may need to adjust sales milestones.
Only around 50% of businesses make it through their first five years of operation. By setting concrete financial milestones, your business has a higher chance of success. Visit our blog for additional resources on small businesses and their employees.
The Human Interest Team
We believe that everyone deserves access to a secure financial future, which is why we make it easy to provide a 401(k) to your employees. Human Interest offers a low-cost 401(k) with automated administration, built-in investment education, and integration with leading payroll providers.