If you have researched or taken courses on goal setting in the last decade, you have probably heard the term “SMART goals.” However, did you know that you can apply these same principles to writing a business plan for your small business? You can make your plan specific, measurable, achievable, relevant, and time-bound. This is how to write a SMART plan.

Set Your Goals

When you write the plan for your business, you should include or corporate mission, vision, and values. Your mission and values should be clear and concise. Your vision can be SMART. You should identify specific goals and milestones. They should be measurable and something your company can achieve. Avoid choosing goals that are not relevant or that change the direction of your company. Break your goals down into key steps and milestones and set time limits for their achievement.

Build a Launch Schedule

If you have not launched your company yet, you should build a launch schedule. If your company is up and running, you should build a schedule for launching new projects or starting on new goals. Focus on one quarter at a time. First, determine what you want to accomplish this year. Then break your year into three-month periods and identify what you need to accomplish each quarter to achieve your yearly goals.

Choose goals that have a direct impact on your sales, profits, and awareness, making them relevant. Setting quarterly goals assures they are time bound. However, you also need to make them specific. How many website visitors do you want to see, what average order size do you want to target, how many new customers or conversions do you seek or what kind of feedback do you hope to see? Create specific initiatives to address your key goal and use available tools to measure your results.

Conduct Market Research

Did you know that your market research section should be no more than three pages long? You need clear, concise, summarized information about your industry, market, and competition. Then, discuss how this research impacts your marketing, decision-making, and industry influence initiatives. Add SMART goals to the end of your market research.

Calculate Your Financials

Many small business owners struggle with their financials section, particularly their projections. However, instead of perfectly predicting the future, focus on your revenue goals, including how you will earn money (revenue streams). Then, identify your costs and whether different revenue streams increase these costs. Identify launch dates for each revenue stream. Make sure your revenues and costs are SMART.

The key to building an effective business plan is to keep each section SMART.