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Financial Objectives

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Every business has two objectives: One is to make money; the other, more elusive, is to make money consistently."

- Dave Liniger

Although making money is a financial objective, businesses should ideally set more specific financial goals to be able to realistically achieve them. Let's take a look at the different types of financial objectives businesses may have.

Financial objectives examples

Financial objectives are the goals or targets related to the financial performance of a business. They are the goals that enterprises set for success and growth.

There are six main types of financial objectives:

Revenue objectives,

Cost objectives,

Profit objectives,

Cash flow objectives,

Investment objectives,

Revenue objectives

Revenue objectives are the most common objectives used by all types of firms.

There are three types of revenue objectives:

1. Revenue growth (percentage or value). For example, aiming to grow total revenues by 30%, reaching £1 million in annual revenue.

2. Sales maximization. For example, maximizing total sales no matter whether they are profitable or not.

3. Market share. For example, growing market share to 40%.

Cost objectives

Cost objectives aim to simply minimize the costs without lowering the quality of a product or service. For example, cutting variable costs to £50 per unit.

Profit objectives

Profit objectives are typically supported by revenue and cost objectives. For example, when growing revenue and cutting costs an enterprise will generate a higher profit.

There are four types of profit objectives:

Specific level of profit. For example, achieving an operating profit of £1 million.

Rate of profitability. For example, achieving an operating profit margin of 15%.

Profit maximisation. For example, maximising the total profit for the year.

Exceed industry or market profit margin. For example, growing the gross or operating profit margin higher than the competitors.

Cash flow objectives

Cash flow objectives are typically used by small businesses and start-ups which are not yet profitable. The objectives focus on improving the cash flow .

This can be achieved by:

Reducing borrowings,

Minimising interest costs,

Reducing inventory and credit sales,

Reducing seasonal swings in cash flow .

Investment objectives aim to increase the return on investment.

There are two types of investment objectives:

1. Level of capital expenditure. It is setting an absolute amount or percentage of revenues. For example, investing £1 million or 5% of revenues per year.

2. Return on investment. It is a target percentage of return. For example, ROCE (return on capital employed) of 20%. (See the article about financial ratios .)

Capital structure objectives

Capital structure objectives are related to how an enterprise is financed and how its capital is structured.

There are two types of capital structure objectives:

1. Higher equity. It is usually used by start-ups and companies which do not have to pay dividends.

2. Higher level of debt. It is used when interest rates are low and profits are high.

It is important to note that businesses can also set non-financial objectives. Check out our explanation Non-Financial Data to learn more!

Personal financial objectives

Personal financial objectives are financial aims set by individuals rather than businesses.

Personal financial objectives are goals and targets regarding the finance of individuals.

For example:

Creating a budget,

Saving for short-term and long-term plans (trip, retirement, children),

Paying off debts,

Investing in the stock market,

Starting an emergency fund (saving money for unpredicted expenses).

Setting financial objectives

There are some simple steps that will help you to set financial objectives:

1. Decide on what you are going to use the money for

Imagine that you set a financial goal and achieve it. You earned all the money you wanted. What now? Think about what you are going to do with the earned money. Always try to make your money work and earn. You can do it by for example further investments .

2. Categorise your financial goals

Segregate your financial goals regarding their length of time:

Short-term financial goals (six months to five years).

Mid-term financial goals (five to ten years).

Long-term financial goals (more than ten years).

3. Set deadlines

Try to set a target date for each financial goal. For example, if you are going to retire in 25 years, make sure you save enough money by that time.

4. Prioritise your goals

It is impossible to achieve all your financial goals at the same time. Therefore, you should decide on which goal is the most important to you and which you need to achieve first. For example, if you want to save money for your child who is going to college next year and save money for your retirement, focus on the first goal first.

5. Know how much you have now and how much you want to have

Calculate how much money you possess at the moment and determine how much you still need to save. You can also think about how much time you have to achieve your financial goal and calculate the amount you need to save each month.

Purpose and benefits of setting financial aims

Here are some of the benefits of setting financial objectives:

It makes you aware of where you are heading - Owing to setting financial goals you are able to determine what you want to achieve and what success means to you.

It helps to determine how much you need to save - Imagine you have £800,000 now and by the end of the next year, you need to achieve double this amount. Thanks to setting a financial objective you can easily calculate how much money you still need to save. You can also calculate how much to save each week or each month.

It allows you to follow an appropriate strategy- Depending on how big your financial goal is, you might need to find and follow an appropriate strategy. Having set your financial objective, you can work out a strategy right for you.

It helps to shape your everyday choices - If you are aware that next month you will have to pay rent for your flat and you have barely the amount needed for the rent, you are aware that you need to save and even earn money. In such a situation, you can for example give a miss to another drink at a pub or take one more shift at work.

It creates a sense of achievement and awareness - Knowing your financial objectives and being aware of how to achieve them also have a positive psychological and intellectual impact. Firstly, achieving your goal automatically makes you feel fulfilled and secondly, the entire process makes you more aware of how money is generated and how much effort needs to be put there.

Disadvantages of setting financial objectives

The disadvantages of setting financial objectives include:

Influences on financial objectives

There are two types of influences that can impact financial objectives: internal and external.

Financial Objectives: Internal influences

Size and status of an enterprise. A lot depends on how big the business is. For example, small companies and start-ups tend to focus on survival, rather than on setting ambitious financial objectives, whereas huge companies are typically able to focus on growing their profits.

Business ownership . It makes a huge difference whether an enterprise is owned for example by an individual or by the government. An individual has more deciding power over their company and therefore bigger possibilities than if a company was owned by the government.

Other functional objectives. Most companies consist of various departments. These departments tend not to agree with one another and consequently limit their ability to set financial objectives.

Financial Objectives: External influences

Competitors. The competitive environment has an enormous impact on each business including its financial objectives. For example, if a firm’s competitors grow market share, the firm needs to catch up with them and consequently give a miss to their financial goals.

Economy. An economic downturn may hold an enterprise back from achieving its financial objectives. Even though they have set such objectives, their plan might easily fall apart.

Social change. Trends tend to change and people tend to drop out using some goods and start using different ones instead. Nowadays there are many factors that have an impact on society. Therefore, a company that has been successfully achieving its financial goals might be easily disabled from continuing to do it because of a change in consumer habits.

Political change. Similarly to social change, politics may hold a company back from achieving its set financial objectives. For example, they might launch new taxes charging a company’s account.

Financial Objectives - Key takeaways

Financial objectives are the goals or targets related to the financial performance of a business.

There are six types of financial objectives: revenue objectives, cost objectives, profit objectives, cash flow objectives, investment objectives and capital structure objectives.

Financial objectives can be set by both enterprises and individuals. These are called personal financial objectives.

Non-financial objectives are objectives that are not related to money.

To set financial objectives you should decide on what you are going to use the money for, categorize your financial goals, set deadlines, prioritize your goals and know how much you have now and how much you want to have.

There are many purposes and advantages of setting financial goals. For example, it makes you aware of where you are heading and allows you to follow an appropriate strategy.

Setting financial objectives also has some drawbacks. These are preventing you from spending money and feeling disappointed when not achieved.

There are two types of influences on financial objectives: internal and external.

Frequently Asked Questions about Financial Objectives

--> what are the financial objectives of a business.

There are six types of financial objectives:

--> What are the main financial objectives?

Financial objectives can be set by both enterprises and individuals. 

The main financial objectives set by enterprises are:

The main financial objectives set by individuals can be:

Paying off debts, and so on.

--> What is an example of a financial objective?

Some examples of  financial objectives are stated below:

Revenue objectives:

 Cost objectives - cutting variable costs to £50 per unit. 

Profit objectives - achieving an operating profit of £1 million. 

Investment objectives:

--> What is the difference between financial and non-financial objectives?

Financial objectives are the goals or targets related to the financial performance of a business. They are the goals that enterprises set for success and growth. 

Final Financial Objectives Quiz

Give a definition of financial objectives.

Show answer

Show question

List all the six types of financial objectives.

Revenue objectives, cost objectives, profit objectives, cash flow objectives, investment objectives and capital structure objectives.

What are the three types of revenue objectives?

Revenue growth, sales maximization and market share.

Give an example of a cost objective.

Cutting variable costs to £50 per unit.

Give an example of an objective rate of profitability.

Achieving an operating profit margin of 15%.

What are the ways to improve cash flow?

For example, reducing borrowings and inventory.

What are the two types of investment objectives?

Level of capital expenditure and return on investment.

How can a capital be structured?

It might consist of equity and/or debts.

Which of the objectives are usually used by small businesses and/or start-ups?

Cash flow objectives and capital structure objectives.

Give an example of a personal financial objective.

For example, saving for retirement or a trip.

Give an example of non-financial objectives.

For example, customer satisfaction and community involvement.

List steps of setting financial objectives.

Deciding on what the money is going to be used for, categorizing the financial goals, setting deadlines, prioritizing the goals and knowing how much you have now and how much you want to have.

What are the three types of financial goals regarding a period of time within which they are to be achieved?

Short-term financial goals (six months to five years), mid-term financial goals (five to ten years), long-term financial goals (more than ten years).

Give an example of a benefit of setting financial goals.

Shaping everyday choices, determining how much to save.

List two disadvantages of setting financial objectives.

It might prevent you from spending money and make you feel dissapointed when not achieved.

What are the two types of influences of financial objectives?

Internal and external.

Give an example of internal influences.

Business ownership.

Give an example of external influences.

Political change.

The goals or targets related to the financial performance of a business are called...

financial objectives.

Growing total revenues by 30% is an example of what type of revenue objectives?

Revenue growth

Maximizing total sales no matter whether they are profitable or not is an example of what type of revenue objectives?

Sales maximisation

ROCE (return on capital employed) of 20% is an example of what type of objectives?

Creating a budget, saving for short-term and long-term plans (trip, retirement, children), paying off debts, investing in the stock market and starting an emergency fund (saving money for unpredicted expenses) are examples of...

personal financial objectives.

Customer satisfaction, employee satisfaction, employee training and development, corporate social responsibility and community involvement are examples of...

non-financial objectives.

The competitive environment does not have any impact on a business's financial objectives.

Higher equity is a type of ___ objectives.

capital structure

This type of capital structure objectives is used when interest rates are low and profits are high.

Higher level of debts

Reducing borrowings, minimising interest costs, reducing inventory and credit sales and reducing seasonal swings in cash flow are examples of  ___ objectives.

Cutting variable costs to £50 per unit is an example of ___ objectives.

Growing the gross or operating profit margin higher than the competitors is an example of...

profit objectives.

of the users don't pass the Financial Objectives quiz! Will you pass the quiz?

More explanations about Financial Performance

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More Like this

Objectives and goal setting.

What is a strategic objective? How is it different from a goal? What should I consider when setting strategic objectives ? These questions and more are answered in this comprehensive guide to strategic objectives.

In what areas will we continue being actively involved in the future?

In this step the firm’s mission and vision is converted into tangible actions (objectives) and later into results (goals) to be achieved. Objectives are broad categories. They are non-measurable, non-dated, continuous, and ongoing. With objectives the company moves from motive to action. Objectives are the general areas in which your effort is directed to drive your mission statement. (Bobb Biehl)

To write an objective ask these questions:

One of the best ways to tell whether or not an area is a clearly defined objective area, is to ask the question:

If you can assign a person, on a continuing basis, to be responsible for everything going on in their area, it is probably a clear objective area.

Use the following criteria in evaluating your objective:

A few examples of objectives are:

Objectives are needed for each key area the company deems important to success. From a company perspective, there are four distinct types of objectives:

Financial Objectives

Financial objectives focus on achieving acceptable profitability in a company’s pursuit of its mission/vision, long-term health, and ultimate survival. Financial objectives signal commitment to such outcomes as good cash flow, creditworthiness, earnings growth, an acceptable return on investment, dividend growth, and stock price appreciation.

The following are examples of financial objectives:

Strategic Market Objectives

Strategic market objectives focus on the company’s intent to sustain and improve their competitive strength and long-term market position through creating customer value.

Strategic objectives focus on winning additional market share, overtaking key competitors on product quality or customer service or product innovation, achieving lower overall costs than rivals, boosting the company’s reputation with customers, winning a stronger foothold in international markets, exercising technological leadership, gaining a sustainable competitive advantage, and capturing attractive growth opportunities.

Strategic objectives need to be competitor-focused and strengthen the company’s long-term competitive position. A company exhibits strategic intent when it pursues ambitious strategic objectives and concentrates its competitive actions and energies on achieving that objective. The strategic intent of a small company may be to dominate a market niche. The strategic intent of an up-and-coming company may be to overtake the market leaders. The strategic intent of a technologically innovative company may be to create a new product. Small companies determined to achieve ambitious strategic objectives exceeding their present reach and resources, often prove to be a more formidable competitor than larger, cash-rich companies with modest strategic intents.

The following are examples of strategic market objectives:

Internal Operational Objectives

Internal operational objectives focus on business processes that have an impact on creating customer value and satisfaction. Internal objectives focus on maintaining the firm’s core competencies.

Management objectives focus on running a major functional activity or process within a business, such as, research and development, production, marketing, customer service, distribution, finance, human resources, and other strategy-critical activities.

Operational objectives focus on how a company manages frontline organizational units with a business (plants, sales districts, distribution centers) and how to perform strategically significant operating tasks (materials purchasing, inventory control, maintenance, shipping, advertising campaigns)

Small Business Unit (SBU)Objectives – The company’s mission and vision needs to be turned into detailed supporting objectives for each level of management. Each manager should have objectives and be responsible for reaching them.

Objective setting needs to be top-down in order to guide lower-level managers and organizational units toward outcomes that support the achievement of overall business and company objectives. A top-down process

Innovative and Learning Objectives

Innovative and learning objectives focus on activities that assist to improve and build the company’s value creating activities. It involves increases the firm’s knowledge base and learning best practices so the company is continually on the cutting edge.


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Updated on December 25, 2022 · By Ahmad Nasrudin Tag: Business Objective

Financial Objective Examples and Detailed Explanations

What’s it:  A financial objective is a target or something we want to achieve through the finance department. They guide the finance department and its team to make decisions and focus on relevant activities to achieve objectives.


Financial objectives can be related to revenues, costs, and profits. And in a broader scope, they may also be related to return on investment, capital structure, and financial soundness (associated with financial leverage).

What factors affect how well financial objectives are achieved?

Often, business performance strongly exposes financial performance. Thus, how well the financial targets are achieved highly depends on the results in other departments, particularly concerning revenues and operating costs. Therefore, this department must be good at managing and monitoring money and encourage other departments to achieve the set budget.

In addition to internal factors, achievement also depends on external factors. For example, an increase in interest rates makes finance costs increase. Consequently, it affects the finance department in achieving financial leverage and capital structure objectives.

Why do companies set financial objectives?

Financial objectives are essential for several reasons.  First , they give us a focus on how much money we should spend. Good financial planning allows us to have money available to meet unexpected payments, such as bills. Long story short, objectives guide us to plan our finances well, both short-term and long-term.

Second , good financial health supports business performance. What a business can achieve depends on the money available. For example, we need to invest in a new machine to support cost reduction. Without such investments, we face increased costs. And it can lead to a decrease in competitiveness because products are relatively expensive due to our inability to lower costs.

On the other hand, poor financial health can impair business performance. It usually stems from poor financial planning. And it gets even worse when we don’t have financial objectives.

Third , financial metrics are usually the first indicators external stakeholders look to when examining a company’s performance. For example, investors consider how much money a company makes to decide whether to buy company  stock  or not. Likewise, creditors look at financial conditions to determine the company’s ability to pay.

For example, investors and creditors look at trends in net income and examine what is happening to revenues and expenses. Then, they relate it to business performance.

Long story short, they check the financial metrics first and then confirm them by looking at the business performance metrics and not the other way around.

How are financial objectives set?

Like the criteria for objectives in other  business functions , good financial objectives must meet the “SMART” criteria:

Specific . What financial metrics will we measure? Is it cost, revenue, profit, or capital? What are our objectives for these metrics? We must define it clearly. So, all staff knows and understand.

Measurable . Measurable objectives allow us to assess whether the target has been achieved or not. Unlike other business functions, financial objectives are usually more measurable. We don’t need to quantify it because the finance department deals with numbers.

Achievable . Good objectives should be challenging but possible to achieve using existing resources and competencies. Objectives too easy are unlikely to lead to our best performance. On the other hand, if it is too difficult, it lowers staff morale.

Relevant . Objectives must fit the context. They must support  business objectives  and objectives in other business functions. In addition, they are also relevant to the business and the environment in which the company operates.

For example, double-digit income growth is an irrelevant objective during a recession. Instead, it may be more appropriate to maintain revenue while taking steps to reduce costs.

Time-bound.  Financial objectives are usually related to financial reporting, for example, quarterly or annually. However, we might also set for a longer horizon, such as three or five years. Deadlines give us a sense of urgency. It also encourages us to take corrective steps to improve performance before the deadline.

What are some examples of financial objectives?

Business  exists to make a profit by offering products to consumers. Therefore, they seek to maximize profits. So, profit can be the primary financial objective.

Then, we might break down our profit objectives into two parts:  revenue objectives  and cost goals.

Generally, profits are identical to the money the company makes after paying all costs. In this case, we identify profits as cash generated.

But, in accrual financial reporting, cash is not the same as profit. For this reason, companies may focus more on cash flow than profit objectives.

In addition to these goals, examples of other financial objectives are:

Revenue objectives 

Revenue objectives are related to how much money is made from selling the product. Examples of revenue objectives include:

Revenue growth  is usually measured as a percentage. So, for example, let’s say we aim to grow our  revenue  by 10% next year.

Alternatively, it can also refer to a nominal objective, although it is not as common. For example, let’s say we aim to increase revenue by $1 million.

Revenue maximization.  Total revenue is maximized when marginal revenue is zero. To maximize revenue, companies usually consider the  strategies  adopted.

For example, if we adopt cost leadership, we might charge a low price to entice consumers to buy more. Thus, the sales volume increases, and we can maximize revenue.

Or, if we adopt a differentiation strategy, we charge prices high enough without destroying existing sales. So, even though the sales volume is unchanged, the higher price allows us to get a higher margin per unit. It also allows us to maximize revenue.

Cost objectives 

Cost objectives require us to minimize  costs  without compromising product or service quality. Also, they do not interfere with the operation.

Why are cost objectives important? First , profits increase when costs fall. So, even if income doesn’t change, we can make more profit (money) by paying less for expenses.

Second , lower costs support a competitive strategy. It makes us more competitive. With a lower cost structure, we can lower prices to attract more customers to buy.

Third , minimizing costs is usually necessary during difficult times, such as a recession. Companies are facing pressure on earnings as demand falls. To maintain profitability, we must be able to save more and lower costs by taking efficiency measures.

How do we minimize costs? It can be done in various ways:

Profitability objectives 

Profitability objectives combine revenue objectives and cost objectives. We might set profit objectives first. Then, we break it down into revenue objectives and cost objectives.

Profit objectives can be:

Cash flow objectives 

Cash flow objectives relate to money coming in and going out. These objectives are common to small businesses. They seek to increase  cash inflows and minimize cash outflows  while keeping the business afloat. It can be achieved through:

Accrual accounting  makes a profit not the same as  cash . So, profit only represents money on paper. Meanwhile, cash represents actual money.

Therefore, some large businesses may focus more on cash flow than profit. They view cash as  more important than profit  because it represents the money they make from their business.

Thus, a company may be poor in profits but rich in cash. Amazon is a  good example.

Healthy financial leverage

Leverage describes how much a company depends on debt to finance operations and generate profits. High leverage indicates high debt dependence. It can jeopardize financial security and health.

Why is leverage dangerous?  Debt is an obligation. So, the company has to pay it regardless of financial condition. So, even when recording a loss, the company must still pay its debts.

Failure to pay debts leads to  insolvency . This situation may force creditors to file for bankruptcy with the company.

For this reason, keeping leverage under control is another financial objective. Healthy leverage is the key to long-term financial security.

With low leverage, companies can take new loans to invest, especially when competition requires companies to increase capital expenditures.

Conversely, it is difficult to raise debt capital if the leverage is too high. If companies could do so, they would have to pay higher interest because lenders demand a higher premium to compensate for the higher risk. And high-interest rates further worsen the company’s financial health.

Return on investment

External stakeholders such as shareholders and investors use  return on invested capital (ROIC)  as a metric to assess business performance. They compare a company’s ROIC with its competitors to determine how well the company is performing.

If the company’s ROIC is higher than its competitors’, it has a  competitive advantage . If consistently maintained, the company achieves a sustainable competitive advantage.

For this reason, ROIC has become  another metric for financial  objectives. In addition, maintaining a higher ROIC than competitors makes it easier for companies to deal with external stakeholders. For example, when issuing shares or debt securities, demand is high, making it easier for them to raise funds.

Optimal capital structure

Maximizing shareholder wealth is a crucial financial goal. It requires the company to achieve an optimal capital structure. In addition to maximizing the company’s market value, the optimal capital structure also minimizes the cost of capital.

What is capital structure?  It tells us the proportion of debt and equity in the company’s capital. Companies need both to finance the business (assets).

Some companies rely more on debt. While others rely on equity.

Although debt creates liabilities and affects leverage, the cost of debt is  cheaper than the cost of equity.  Thus, at a certain level, the company must increase its debt to achieve an optimal capital structure and minimal capital cost.

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10 Business Financial Goals for Making Money Now!

Examples of financial goals for a business fully explained.

Today we are going to dive into 10 business financial goals that every company should have . To maximize business profits. And position for profitable growth into the future.

Having worked as a corporate finance professional for nearly 30 years. I have planned, set, and achieved more business financial goals than I care to remember.

But this isn’t about me. It’s about you and your business. So let’s focus on the best company financial goals that your business should have.

10 business financial goals

Disclosure: At no cost to you, I may get commissions for purchases made through links in this post.

10 Examples Of Financial Goals For A Business

Here is my top 10 list of financial goals for a business. Consider it your summary of what we will cover a little later on.

Next, let’s lay in a little background information. So we are all on the same page about today’s topic. So you become a student of financial goal setting for your business.

Specifically, I want to address these 3 questions:

Then we will cover each of the 10 best financial goals examples for a business in greater detail.

FAQs about financial goals for business

What Is A Business Financial Goal?

First of all, a goal is the desired outcome that a person envisions, plans, and commits to achieve for their business.

Furthermore, a business financial goal is a result that you want to accomplish in an area of your company’s finances.

Finally, good business financial goals are company-specific.  Because every business is different.

Why Do Businesses Set Financial Goals?

Business goals are a critical element to improve the odds for success with your company’s finances.

First of all, setting the financial goals of a company will prompt you to establish new behaviors within the organization.

Furthermore, business financial goals guide everyone’s focus. And help keep the company from straying into financial problems .

Not sure what you should work on this week? Then just refer to your company’s financial goals. And let them guide you.

Finally, business financial goals allow companies to take big plans and ideas that seem overwhelming. And pursue those plans one goal at a time.

And this isn’t to downplay the importance of non-financial performance measures . Because every business needs them too. They just aren’t the focus of this article.

How Do You Set Business Financial Goals?

I suggest the SMART system for setting business financial goals. In this case, each of your goals should have the following 5 attributes.

Allow me to explain what it means to set SMART goals …

Business Financial Goals Are Specific

The first step in making SMART business financial goals is to make them specific.  So, define exactly what is to be accomplished.

The more details about the goal that you can document, the better. Because you will become more clear on exactly what you want to achieve.

Business Financial Goals Are Measurable

Make the financial goals for your business measurable.  To do so, answer this: what information are you going to use to measure your progress in route to the goal.

Fortunately, most financial goals for a business tend to be easy to measure. They can be defined in dollars and cents.

Business Financial Goals Are Achievable

We want to stretch ourselves and our businesses.  But, there is no need to set business goals if they can’t be achieved.

By being specific, you will come to understand whether the goal is achievable.

Business Financial Goals Are Realistic

A realistic goal has 2 attributes.  First of all, the goal should make sense for your current business situation.  Furthermore, make sure you have the resources to achieve the goal.

Business Financial Goals Are Time-Bound

You must set a date to achieve your financial business goals. First of all, having a deadline will increase your sense of urgency. Furthermore, a time constraint will increase your odds of success.

Many business financial goals are short-term in nature . In contrast, others may take many years to achieve.

Okay. So we know what business financial goals are. We know why they are important. And we know how to set them.

Next up, exactly what you have been waiting for…

Examples Of Financial Business Goals Explained In Detail…

list of business financial goals

So, let’s cover each of the 10 financial business goals examples next…

1. Clearly Define Your Value Proposition

You must clearly define your value proposition for your target customers. This may not seem like a financial goal for a business. But, it is.

Your value proposition is the foundation from which your other financial goals are set. Knowing exactly what you are setting out to deliver means avoiding financial mistakes in the future .

So, make sure you are crystal clear on your target customers. And exactly what you are going to deliver for them.

Figure out what services and products you want to deliver. Then set a goal to be great at doing it.

From here, we can start digging into the finances…

2. Increase Sales Volumes To Generate More Revenue

Your value proposition dictates what you intend to sell.  Whatever, “it” is. Now, set a business financial goal to sell more of it.

First of all, if your products or services sell, then you have a viable business model.  Furthermore, every business needs to make sales. And that’s what sales professionals are good at.

A former colleague of mine and sales executive I used to work with had an interesting saying.  His name was Peter.  And Peter used to say,

“Nothing starts in a business until a sale is made.”

Now I differ with Peter on this to a degree.  Because there are a lot of activities that businesses engage in before they start selling a product or service. But, there is wisdom to Peter’s thought.

Because every business has fixed costs. Those costs you incur no matter how much you sell.

And by selling more, you leverage those costs across a greater revenue base. Allowing more profit to flow to the bottom line. And ultimately, into your pocket.

3. Optimize Product And Service Pricing

I could write an entire article on business pricing strategy. But, that is a post for another day.

Suffice it to say that you should think about and optimize your pricing. But, this means different things to different businesses.

Are your products and services commodities? Then price at the same level as your competition.

Price a commodity item too high. And your competition will take all of your business. Because your offerings are not differentiated.

In contrast, do you sell premium products and services? Unique and valuable as compared to the competition? Then set your prices to what the market will bear.

Regardless of the situation, set your prices as high as you can. Because higher prices flow right to the bottom line in the form of greater profits.

4. Decrease Expenses

examples of financial goals for a business

Pull together all of your expenses for the last month, quarter, and year. Then go through them with a fine-tooth comb.

Identify expenses that are not necessary. To deliver on your customer value proposition from goal #1. Then eliminate those expenses.

Strive to be a low-cost leader . In whatever business you choose to operate.

That’s why defining your value proposition is so important. Because expenses that directly support it are important. They should not be eliminated.

That would be like “cutting off your nose to spite your face” as the old expression goes. So, be like a surgeon when looking for cost reductions.

Take out, fix, and repair only the expenses that are not necessary. Because they are like a disease. That builds over time. And threatens the financial health of your business.

Finally, do you make purchases online? Then save money on everything you buy with Rakuten. 

Electronic rebates for buying things you need anyway!  It is money in your pocket.

You can learn more about Rakuten here . Next up, in our examples of business financial goals: productivity.

5. Implement Productivity Improvements

Set goals to execute your business processes either better, faster, or both. This is another way of reducing expenses.

Better means doing more with fewer resources. Faster means getting the most out of the resources that are already in place.

Years back, I worked with a business process consultant. His name was Rhett. He talked about getting better every day.

Rhett had a saying that has stuck with me. He used to say “we need to operate better today than we did yesterday. And be better tomorrow than we are today.”

Another expression I think about came from a CEO I worked for. His name was Bill. He talked about being faster and more efficient each day.

Bill always told us to continually ask ourselves “am I working on the right things and am I doing those things the right way”.

These expressions might seem catchy. But they are real.

They are at the essence of improving the productivity within a business. And are the foundation for employee goal setting .

As you think about ways to get better and faster. Consider smart business outsourcing of certain tasks to save time and money.

6. Increase Profit Margins

A company’s profit margin is the money left from a dollar of revenue. In other words, the money remaining after selling a dollar of whatever it is you sell.

Some businesses have high-profit margins. For example, 90 cents of profit margin remains from a dollar of sales.

In contrast, other businesses have low-profit margins. And may only have a nickel after making a 1 dollar sale.

It doesn’t matter what type of business you have. Set a goal to make your profit margins as high as possible.

By doing what we have already discussed:

Finally, don’t forget about locating your operations in a business-friendly state . For the growth, expense, and tax benefits they can foster.

Put all of these elements together. Then, your profit margins will naturally rise. To their highest potential level.

7. Forecast Cash Flows

smart business financial goals examples

Have you ever heard the expression “cash is king”? Well, it is. At least when it comes to business financial goals.

Set a company financial goal to create a cash flow forecast. And keep it updated on a routine basis.

Budget your cash inflows and outflows . To do so, forecast the cash coming in from the payments from customers. And the cash going out to cover all of your business expenses.

Because it’s critical to know how much cash is coming and going. And when.

Also, your cash flows forecast becomes part of your business financial plan. Just one of many benefits of preparing a cash forecast .

8. Develop A Plan For Cash

And now that you know your company’s cash flow. Make a financial plan to use any excess cash wisely.

Typically, there are 6 options for the use of your company’s excess cash:

On the other hand, you may be forecasting that your business will run a cash deficit. This is normal for early-stage growth companies. And, startup companies setting financial goals early in their life cycle.

If your company needs cash, you will need to seek out lenders or investors.  Then, having a solid set of financial goals and a business plan becomes very important.

Your plan will help you convince outsiders to provide your business the cash it needs to grow. More on business planning in a moment.

But first, are you interested in a loan? Then you can get a personal or business loan from LendingTree with very competitive rates. You can learn more about LendingTree here .

9. Make Investments For The Future

Regardless of whether your business is generating cash. Or, you need to go outside the company and borrow money.

It is important to set smart business financial goals for investing money in your company .

Because investments become part of your business financial strategies. And a component of your business plan. More on that topic in a bit. But first…

You must determine what the best investments are today. That will make your business more money in the future. So, these financial goals tend to be long-term by nature .

As the saying goes, it takes money to make money. Just be smart about your business investments.

Be sure to require an acceptable return. Also known as return on investment (ROI).

One last topic in today’s financial goals examples for business. Then, I will wrap it up.

10. Develop A Business Plan

By now you should have a very clear idea about your business’s value proposition. A cash flow forecast. And a quality set of business financial goals that you are setting off to achieve.

If this is the case, then you are well on your way to having a business plan . And as I said earlier, a business plan is critical if you need to go to outsiders. For money to finance your business.

When you want your business to make money as soon as possible, planning can seem tedious. However, successful business owners will tell you, a plan was often the key to their success. And critical to avoid serious financial problems . that many businesses encounter.

Because business planning pushes you to think carefully about how you’re going to bring your venture to life.  And build it into a financially successful business enterprise.

Typical components of a business plan include:

Your business plan is the long-term strategic view . That you will present to outsiders.

business plan presentation

Then your business financial goals should be tightly linked to your business plan. And ultimately, support your long-term personal financial plan .

But remember, as part of your goal setting and planning processes. Be sure to keep your personal finances separate from your business.

I use Personal Capital to pull all of my personal expenses and investments together in one place. Best of all Personal Capital is free to sign up and use.

You can learn more about Personal Capital here . Okay. That concludes our review of 10 financial goals for a business.

Let’s wrap up with a summary of what we have covered.

Summary: The Importance Of Business Financial Goals

article wrap up

First of all, a business financial goal is a result that you want to accomplish in an area of your company’s finances.

Furthermore, business goals are a critical element to improve the odds for success at your company. And guide your day-to-today focus.

Finally, I suggest the SMART system for setting business financial goals. In this case, each of your financial goals should have critical attributes . They are:

And here is a summary of the 10 business financial goals examples we reviewed today.

More Reading To Further Your Finances

My Favorite Finance Tools To Save & Manage Money

I mentioned several of my favorite finance tools throughout this article. And I have summarized them here for your convenience.

Author Bio, Disclosure, & Disclaimer: Please join me (Tom) as I try to achieve my goals, find my next place to live, and make the most of my money. However, I am not a licensed investment adviser, financial counselor, real estate agent, or tax professional. Instead, I’m a 50-something-year-old, early retired CPA, finance professional, and business school teacher with 40+ years of DIY dividend investing experience. I’m here only to share my thoughts about essential topics for success. As a result, nothing published on this site should be considered individual investment, financial, tax, or real estate advice. This site’s only purpose is general information & entertainment. Thus, neither I nor Dividends Diversify can be held liable for losses suffered by any party because of the information published on this website. Finally, all written content is the property of Dividends Diversify LLC. Unauthorized publication elsewhere is strictly prohibited.

10 Business Financial Goals Every Company Must Have

More From Forbes

15 essential financial goals every business should achieve in its first year.

Forbes Finance Council

Launching a new business is a difficult venture, and many don’t succeed. In fact, data shows that 18% of businesses fail after the first year, and almost 50% of businesses falter after 10 years. Ultimately, success versus failure comes down to how strong a financial foundation an owner has set for their business.

The members of Forbes Finance Council understand how critical it is for a business to achieve certain goals within its first year to survive. To that end, below, 15 of them discuss essential financial tasks or milestones a business should accomplish in its first year, and why they’re so important.

Members of Forbes Finance Council discuss essential financial goals every business should achieve in its first year. Not pictured: EJ Paul.

1. Separating The Owner’s Business and Personal Finances

The one foundational task every business owner should complete is separating their business finances from their personal ones. Many small-business owners don’t even know if they’re succeeding or failing when their finances are co-mingled. They think they’re doing well, only to realize too late that they were accidentally shoring up their business with their personal emergency fund. - Sameer Gulati , ZenBusiness

2. Growing Net Cash Flow

Growing net cash flow is the one essential financial task a new commercial real estate investor must accomplish within their first year. Raising rents and occupancy and controlling costs are the key determinants to successfully increasing property values. This is particularly important when interest rates, inflation and cap rates are rising. - EJ Paul , Eagle Commercial Funding Solutions, LLC

Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?

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3. Articulating And Solving A Specific Problem

Small businesses improve their chances of success if within the first year they 1. are able to clearly articulate the problem they are solving, 2. have a solution that uniquely addresses that issue (this is “product-market fit”), 3. understand the unit economics of their offering when they are sub-scale and at-scale. Failing to achieve these objectives in year one can be a risky proposition. - Sean Brown , YCharts

4. Making The First Sale

There are many financial milestones for a business, but the most important is to get out there and make one dollar. So many entrepreneurs get bogged down with thinking about the different facets of starting a new business. The focus should be on getting your first sale—if you have not established your market, then how can you successfully grow a company? - Patrick Rood , Rood Financial Services

5. Establishing A Repeat Client

Most business owners know how to attract new customers, but a great business owner knows how to retain them. Your first milestone is to sell your service or product to a repeat client. It is imperative for your business to have a strong online presence; utilizing social media is the best way to maintain client relationships and then reward those clients for their loyalty. - Crystal McCullough , The Spearhead Group Inc.

6. Hiring A Financial Expert

Don’t go it alone. Speak with a financial advisor or CFO to understand the potential areas for financial risk, and have a team in place, ready to go, for when or if those problems arise. Also, don’t just plan for the negative. It is essential to have a plan prepared for when you’re exceeding your expectations. - Karim Nurani , Linqto

7. Outlining A Spending Plan

I think the best principle to stick with is the “lean startup” method. Stick to the essentials. If you don’t need office space, don’t get it. Bootstrap your business and extract as much feedback from mentors and peers in the industry as possible. Many businesses fail in the first year from a lack of proper financial planning. Make sure you have a solid outline before you start spending real cash. - Ben Jen , Ben Jen Holdings SLLC

8. Analyzing The Competition

Analyzing your competition is crucial in the first year of forming a business in 2022 and beyond. Consumers are smarter than ever, and we’re living in a saturated market for numerous industries. Take the time to research who your competitor is and how you can differentiate yourself, and make your company or product unique to let your value be shown. - Charlene Wehring , Wehring Wealth Management

9. Gaining Access To Capital

Access to capital is critical for a startup at any stage. As such, it is important to find and develop a business banking relationship as quickly as possible. If possible, leverage any existing banking relationships you may have. The sooner you focus on building your business banking relationships, the more access to capital you will have down the road. - Robert Reeder , GlassView

10. Understanding The Business Model And Unit Economy

I think it’s essential for a new venture to have a solid minimum viable product in place within a one-year timeframe. Another crucial point is to understand your business model and unit economy—at least have an understanding of how it should work and have some proof from the market. This data could come from trials with prospective clients or from some presale. In this way, monthly recurring revenue could be in place or future MRR could be calculated. - Alexey Posternak ,

11. Knowing Your Cash Position

Make sure you know your cash position at all times. A slow start is better than a fast one, which could leave you with too much inventory and/or no cash to run the business. If you need capital, try a friends and family funding round to kick start the business, but do not take on debt unless it’s working capital debt. Don’t give a guarantee on “personal” assets unless you can really afford it. - Marcel Bens , Emil Capital Partners

12. Having Two Months’ Cash On Hand

Have cash on hand to cover business operations for at least two months. Many businesses cite cash flow as their top reason for failing. Keeping expenses low and having cash available ensures the business has a chance even if (as is likely) cash flow fluctuates due to an unstable new client base. - Nick Chandi , ForwardAI

13. Identifying Sales Numbers And Price Structures

Within the first year, a new business owner must identify sales numbers and price structures and understand what their break-even point is on the items or services they are selling. This will enable the entrepreneur to plan out their growth in a measurable way and set appropriate sales goals to break even and become profitable. - Luz Urrutia , Accion Opportunity Fund

14. Hiring An Employee

Too often, entrepreneurs get consumed with working “in” their business rather than “on” their business. Hiring employees is often a tough decision, and it’s a hurdle many businesses never cross. However, an entrepreneur is more likely to treat their business as a business rather than as a source of income when they’re responsible for others’ financial well-being. - Michael Jay Markey , Legacy Financial Network

15. Keeping Expenses In Check

Expenses rarely get the spotlight that total revenue does, but they’re just as vital to a company’s cash flow. While turning profits is the endgame for new businesses, excessive spending will ultimately drain a company’s cash on hand regardless of how profitable the business is. With this in mind, it is imperative for new businesses to keep expenses in check, especially during year one. - Mara Garcia , Phonexa Holdings, LLC

Expert Panel®

business plan financial objectives

business plan financial objectives


9 Financial Goals You Could Set for Your Small Business

business plan financial objectives

Sometimes small business owners find themselves spending too much time working in  their business, and not enough time working on  it.

That’s fine if you want to maintain the status quo.

But if your goal is business growth, it’s important to consistently set attainable yet challenging financial goals for your business and work towards achieving them.

In the process, you’ll learn a lot, and once you reach them, or even just come close, your business will be in better financial health .

That said, here are nine financial goals that small business owners should set this month, quarter, or year.

Better Management of Cash Flow

Increasing the profit margin, reducing debt, investing more in marketing, reducing overall expenses, investing more back into the business, optimizing the service pricing, saving up for the future, diversifying streams of income.

Effective cash flow management is of the utmost importance for small businesses, especially when you consider that the reason 82% of them fail is poor cash flow management.

business plan financial objectives

Source: Keap

If you improve your cash flow, you will also reduce the likelihood of suffering any shortages that prohibit you from covering your expenses and operating your business.

You’ll never have to worry about keeping the lights on or paying employees on time.

As for how to go about hitting this financial goal, there are some best practices you can follow:

After enacting these strategies, your small business should be better equipped to seize investment opportunities, weather hard financial times, and grow more effectively.

Your profit margin is an indication of how well your business is doing financially.

When you increase your profit margin, you’ll keep a greater portion of your earnings, which you can keep or strategically reinvest in your company.

Increasing your profit margin can also reduce the chances of coming into cash flow issues that can stall your operations and injure your small business.

There are many ways a small business owner can improve their profit margin, as you can see below:

business plan financial objectives

Source: Tide

The two overarching methods, however, are raising prices and cutting costs.

If you feel your service is creating more value than your price reflects, or if you’re seeing higher prices from your competitors, it’s a good idea to choose the price option.

Try raising prices  for each new customer and tracking how they react. If customers still accept it, then you’re on the right track. Keep raising it.

If you’re getting pushback, perhaps it’s time to start building up credibility with accreditations, testimonials, case studies, and other evidence that shows your service is worth the price.

Cutting costs, on the other hand, can be a little trickier, since your business relies on certain inputs and processes that your team is familiar with.

The nice thing about being a small business, though, is that you are agile enough to adapt quickly.

So start by finding and cutting unnecessary expenses. Audit your teams to see what subscriptions and software tools they are barely using, then cancel them.

You could also consider switching to a smaller office and hiring remote workers to reduce rent.

And don’t forget about independent contractors.

business plan financial objectives

Source: Business Management Daily

Such contractors generally cost 30% less  than full-time employees because you avoid paying for disability, benefits, payroll taxes, sick days, and more.

If you reduce your debt, you’ll end up paying less in interest over the long run.

Plus, it also should be easier to make your monthly payments, which allows you to boost your business credit score and get funding more easily in the future.

If, on the other hand, you stumble into hard times and are unable to make debt payments on time, you might have a financial crisis on your hands.

Fortunately, with prudence and discipline, business debt can be reduced and eliminated.

To begin, assess your business debt.

Write out all the debts you owe, and then calculate your debt-income ratio, which tells you if you have the working capital to continue covering your debt.

business plan financial objectives

Source: Educba

Now that you have an overview of the situation, pick which debts you want to focus on eliminating.

Financial wisdom states that you should focus on the one costing you the most in fees and interest.

Two of the best ways to pay off debt more quickly are to raise revenue or cut costs, so that you have more cash to put towards paying off your debt.

And, if you want to take this very seriously, use ​​ zero-based budgeting , where any leftover profits are used to pay down the debt.

Another method you could try is re-negotiating your rates with vendors.

If you’ve been paying on time and your business is doing well, they might consider accommodating you, since they don’t want to lose you as a future borrower.

Because there’s so much to focus on while running a small business, many owners neglect improving their marketing strategy.

But this is a mistake, since investing in marketing can greatly increase their number of customers, which in turn improves their bottom line.

Not to mention, improved marketing can improve brand recognition, which enables businesses to charge customers more for their products and services, thereby improving profit margin as well.

And getting customers through marketing channels, especially digital marketing, is more sustainable than word-of-mouth, and, once set up, more passive than outbound sales.

That said, here are the three best bang for your buck marketing investments for small businesses:

In sum, small businesses need to start looking at marketing as an investment in their future rather than a luxury expense that can be cut without consequences.

When you reduce your business’s overall expenses, your profit margins increase, and you end up with more money to invest back into your business.

Plus, if you get your expenses in order, you’ll rarely run into situations where you’re strapped for cash or forced to take out a loan.

One of the best ways to reduce expenses  is by improving your operating efficiency.

When you get work done faster and with fewer resources, be it labor, external consulting, or equipment, you’ll end up saving money.

Often, many of the administrative tasks that eat up a small business’s time and money can be automated with inexpensive software products.

For example, if a billing team was sending out invoices manually, they can save time using an automated billing tool , like Regpack, that will streamline the process, while eliminating costly human error as well.

This way, when the business grows and the invoices increase, the business won’t necessarily have to hire new employees to manage the work since the current employees are working so quickly.

Many SaaS platforms also come with a customer success rep who will act as an advisor.

business plan financial objectives

Source: Gromor

This can save you from the high costs of hiring consultants—something small businesses should avoid when trying to reduce costs.

One of the most effective ways to grow your business is to step up the earnings you’re putting back into the business.

Best practice recommends reinvesting anywhere from 20%-30%  of your profits. However, some companies focused on growth, go even higher than that.

They know it’s a surefire method to improve areas of their business and drive revenue.

The first step to accomplishing the goal of investing more money back into your business this year than last is to increase your profits so that you have more funds to invest.

Do this by cutting expenses, increasing sales, or improving other financial metrics .

Then, you need to assess your business to uncover what investments would create the greatest per dollar impact.

Start by checking which areas of your business are failing to meet certain KPIs or goals and could therefore use a boost in productivity or effectiveness.

For instance, if your sales team keeps failing to generate enough leads, it might be smart to use that money to build out a content marketing strategy or to purchase sales software that speeds up cold outreach.

In general, though, you can’t really go wrong investing in the below areas:

In conclusion, businesses that have goals for increasing total reinvestment will drive growth and continue to improve throughout the coming years.

If you price your services too high, you may be missing out on sales—too low, and your profit margins suffer .

If you take steps to find the best price for your service, that spot where value, profit, and customer desire overlap, you’ll increase your revenue.

The best place to start with pricing  is by checking to see what competitors are charging, while also taking into account what it costs you to render the service.

This can give you a starting point price, but, for most small businesses, there’s still work to do to optimize it.

More specifically, you have to engage in value-based price optimization analysis, where you analyze customer and market data to find a price point that reflects the value of your service.

Because this process can be rather cumbersome and mathematically challenging, many businesses choose to use a pricing software like Price Intelligently , which will analyze customer reviews, transaction history, and other data points to figure out what customers value, and then give you pricing insights based on the findings.

They’ll also help you monitor the performance of your pricing going forward. This touches on an important aspect of pricing: the job is never over.

You have to keep a close eye on your market and the industry and consistently adapt your price to fit the changing environment and your customers’ willingness to pay.

Prudent small businesses often put aside some of their profits into savings accounts, thereby creating a lifeline in case hard economic or financial times hit them  and their business.

Having funds stored in an interest-bearing account means you’ll have a liquid source of money that you can access when you need it, and it’s less costly to draw from a savings account for unexpected expenses or cash flow issues than to take out a loan.

As for how much to save, conventional wisdom says to put at least 10% of your monthly profits into your savings account, until you’ve saved up anywhere from six to nine months of operating expenses.

That should provide you with a sound financial cushion.

When selecting a bank, there are some attributes to look for. First, prioritize a higher annual percentage yield, as it means you’ll earn more money in interest.

Second, ensure the bank doesn’t have too many hidden fees like those for maintenance, account inactivity, or withdrawal.

Lastly, use a bank that’s FDIC-insured , since this will provide extra security in case something goes wrong with the bank. Some banks also offer cash perks.

Check out the three best banks for small businesses below:

business plan financial objectives

Source: The Penny Hoarder

If you follow these savings best practices, you will have more peace of mind while running and growing your business.

You’ve likely heard the saying “don’t put all your eggs in one basket.” This holds for small businesses as well.

Generally, the more income streams your business has, the less financial risk you face.

If one service starts to lose customers or goes through a slump because of the economic downturn, you’ll likely have others that are still making you money.

Income diversification deserves to be one of your financial goals this year.

Many service-based businesses, especially those in the education space, can create another stream quite quickly by creating online courses , recorded or live, and offering them to customers for a price.

business plan financial objectives

Source: Peloton

This not only ensures your business will still make money if there’s an event, like a pandemic, that prevents people from meeting with you in person, but also helps you reach new customers who would have never come to your store in the first place due to location or preference.

There are numerous other creative ways to diversify your income streams, from offering subscription services to getting involved in affiliate marketing, where you make money from directing customers to other products or services they might enjoy.

Often, all it takes is some ingenuity, courage, and discipline to create another revenue stream for your small business.

When you set financial goals for your small business, you start to feel more motivated, more assertive, and more in control of its destiny.

Whether it’s improving your profit margin, reducing debt, or putting more money towards marketing, pick a goal for this quarter and start taking action to achieve it.

Before you get to work, it helps to read up on small business financial best practices  so that you’re informed to make intelligent decisions and confident enough in that knowledge to follow through.


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A “forbes 100 best websites for entrepreneurs”, how to set financial goals for your business in 2022.

By: Sharita Humphrey –

business plan financial objectives

With all the uncertainties of this year and the last, it’s a good idea to be prepared for whatever may happen. It’s time to set financial goals to help you manage the ups and downs of running your business.

What Are Financial Goals?

Your financial goals are your plan for how much money you want to make in your business. These goals will guide how you run your business, spend your resources, and save. Your business financial goals are about things like profit and growth. You should also have personal money goals, which will give you a different perspective on how you make and spend money in your business.

Some personal financial goals might be to save for a vacation or special purchase, a home, a car, or retirement. All of these goals will require you to set short- and long-term business goals that allow you to live the life you’ve imagined for yourself.

Why Are Financial Goals Important?

Having a goal changes the way you look at your money. You’ll start to filter your daily financial decisions through the lens of your goals. Will you go for a high-end printer or look for a less expensive option? It depends on what will serve your business best and help you get where you want to go. Having a plan will help you prioritize your spending and investments so your business can serve your dreams. The way you use your money today will impact the money you have in the future.

Two Types of Financial Goals

You can plan for both short- and long-term goals.

• Long-term goals – Generally, long-term goals focus on five to ten years from now, and beyond.

• Short-term goals – Think two to five years. Or even just a few months. This might include things like investing in new technology or equipment to boost your productivity and profits.

With that said, here are a few ways to begin setting financial goals for your business in 2022:

1. Step back and evaluate your financial situation for this year to see where you stand. By doing this, you’ll be able to look at your current financial situation and map out where you want to go next. Draw a line starting from your current situation to where you want to be at the end of 2022. Make that your goal. Then work backward to create small steps toward achieving that goal.

2. Make your goal measurable. Have a concrete goal in mind. Don’t just say you want to make more money next year. Set a number. What will your profits be for the first quarter? Second? Fourth? This way, you’ll be able to track your progress and have a clear picture of your success in meeting your financial goal.

3. Write down your goals. This is so important. People who write down their goals are exponentially more likely to achieve them. Have a log of your financial goals for every milestone. For example, your profits for the first quarter will be X amount. When you get to the end of Q1, you can see if you’ve met or exceeded your goal. Write down your goal for every quarter of the year and make your financial decisions based on how you can make that happen. By documenting it, you’ll keep your goal top of mind. And you’ll be closer to achieving it.

4. Examine and outline your monthly budget. Keep a close eye on your budget to gain insight into where you need to adjust in order to reach your goals. Outlining your monthly budget will help you control your finances as well. Be wary of making adjustments. You’re spending your money to profit from your business, and if you compromise too much on the little things, you can end up compromising your future investments as well. By keeping a close watch on your budget, you’ll be able to determine the adjustments that will help you reach your goals.

5. Determine which are short-term goals and long-term goals. Make short-term goals as well as long-term goals. How will you work and grow profits in the near-term and beyond?

Now that the year is coming to a close, it’s the perfect time to set your goals for the next year. With clear financial goals and a solid dedication, your business is set up to grow and expand.


About the Author: Sharita M. Humphrey is an award-winning finance expert, money mentor and Certified Financial Education Instructor. Once broke and homeless, Sharita completely transformed her life and is now a successful entrepreneur and one of the most in-demand money coaches for individuals and business owners of color. In 2020, Sharita was named National Financial Educator of the Year.

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