2020 was an uncertain year for most business owners, and goals went awry. The start of the New Year is when goal setting is on our minds both on a business and personal level. This is relevant if you are an entrepreneur creating your own ladder or an executive working in a corporation.

Factors determining business goals

A reflection on what works for your business is critical to achieve business goals. Prior to setting goals you need assess factors that will determine business in general.

• The world has shifted to the digital medium, which is manageable
• Low cost/low margin models are likely to prevail in the future
• Human to human connect becomes relevant going forward, even through a digital medium
• Growth plans need to factor in extreme events with business continuity plans for the future based on technology
• Understand the tradeoffs between levels of risk and business
• Build reserves to ward off potential threats and business contingencies
• A focus on integrating the head, heart, and hands in a business which may not be very people-intensive as well

Also read: The secret to financial fitness in the coming year

Priorities for personal goals

A good practice is to look at your goals daily, as per Brian Tracy's goal setting guide. A tested format is defining the goal and seeing yourself there. With personal goals, a couple of things become fundamental.

• Ensure emergency reserves for at least one year as we do not know when things might come to a standstill
• Build a habit of having passive income is critical whether you are in a job or on your own
• Take informed advice as that reduces errors

Why does informed advice matter?

Informed advice matters when we look at things from an exit strategy point of view. Although all the wealth of information is available, people tend to make mistakes in this area. This results in situations wherein things could go wrong. Whether it’s being stuck in a time warp or with a set of assumptions, it can be fatal to your financial wellbeing.

In what situations is it relevant?

• When there is underperformance vis-à-vis the category average
• When there is a consecutive double-digit high return in a high-risk category and upside seems limited
• When growth is astronomic in the portfolio values in a phase in the process of coming back to the median

Also read: Mantras for financial success

Is there anything else that can be done differently this year?

This is more of looking at the integration of personal goals and aligning your finances to them. This is the proper understanding to aim at. Once the eureka moment strikes, things can be done the way they should be.

This year one can look at Income – investments = expenses as a paradigm. This can potentially change the way you look at your finances. This becomes critical for SME owners as external finances may not be available at times. Business and investing are team sports. That mindset will be your saviour in the years to come.

Also read:  A challenging year. An optimistic tomorrow

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