Transform Your Business with SMART Financial Goals

I have a small list of favorite business acronyms.  They’re my favorites because they help me build, start, grow and sell multiple businesses. One of them was a restoration business I started from zero. This little set of five letters Goal setting is a fundamental goto in my personal life too. The SMART acronym is your guide to setting goals that are not only ambitious but achievable.

If you don’t know who I am, I’m Scott Miller and I’m the owner of thegrowthleague.com. I’m making these videos to help restoration business owners get more profitable, reduce the chaos, and build something they can sell for a lot of money when they are ready to move on.

What are “SMART” Goals?

• Specific: Your goal should be clear and detailed, leaving no room for ambiguity. It’s about zeroing in on what you want to achieve with precision.
• Measurable: Quantify your goal to track progress and know definitively when you’ve crossed the finish line.
• Attainable: While ambition is key, your goal should be within reach, agreed upon by all involved parties, making sure it’s realistic and achievable.
• Relevant: Ensure your goal aligns with broader objectives, be they personal aspirations or business targets, confirming it’s both realistic and results-focused.
• Time-bound: Setting deadlines not only provides motivation but also a sense of urgency and a way to measure success.

Applying “SMART” to Real-World Goals

When it comes to Profitability, here’s my recommendation . . . start reviewing the following against a goal:

1. Net Profit
2. Gross Profit (overall)
3. Gross Profit (by division or job type)
4. Gross Profit (by job . . . “Job Costing”
5. DSO - Days of Sales Outstanding – a measurement of how long it’s taking your company to collect money from customers

Here’s another idea for you – Imagine you’re intent on making some serious improvements in the area of —Sales. To get more exact, we're targeting restoration sales to agents and adjusters (If you think agents and adjusters aren’t good referral sources anymore, you’re wrong). Instead of a vague aspiration like "Increase revenue through agents and adjusters," let’s create a SMART goal.

Non-SMART/WEAK Goal: Generate more revenue through agents and adjusters.

SMART Goal: Generate $100,000 or more in revenue through new relationships with agents and adjusters by December 31, 2024, with a focus on $30,000 from agents and $70,000 from adjusters.

Breaking It Down

• Metrics: Aim for $30,000 from agents and $70,000 from adjusters.
• Milestones: For agents, target $5,000 per month over six months; for adjusters, $12,000 per month over the same period.

Required Steps for Agents (Adjusters follow a similar path):

• Record every job’s agent.
• Initiate contact on day one.
• Provide a 24-hour update via email.
• Deliver a customer satisfaction report personally.
• Request referrals actively - call, text and email
• Include the agent in your email marketing efforts.

Accountability and Progress Tracking:

• Assign a person to each step of the process.
• Use weekly meetings and a straightforward tracking sheet to communicate progress.

Tips for Powerful Goal Setting

• Focus: Zero in on a specific business area. In this example, it’s restoration sales.
• Refine: Turn a broad goal into a SMART goal. Instead of "more revenue," specify an amount and deadline.
• Detail the Steps: Break down the goal into actionable steps. For sales, this will involve direct engagement strategies with agents and adjusters.
• Assign Responsibility: Ensure every task has a name next to it. Accountability drives action.
• Track and Communicate: Regular updates keep the team aligned and motivated, turning individual efforts into a collective drive towards the goal.

Closing Thoughts

Before I discovered the SMART goals method, setting goals wasn't really my thing. It felt like something that was meant for others, not me. But once I gave it a genuine try, my perspective shifted. It’s not about using fancy terms or following a complicated process. It’s about clarity and focus. This approach made a huge difference for me, personally and in my restoration business, and I believe it can do the same for you.

Here’s my advice . . .  just try it. Commit to giving it a real shot. I’m sharing a tool that works for me and could very well work for you. If you’re ready to give SMART goals a chance, I’m confident it’ll be a game changer.