What Are SMART Goals and How Do You Make Them?

Making goals is part of the human experience, but finding ways to actually achieve them is crucial to small business success. Everyone makes goals, but the huge ones like “We’re going to grow our business this year” or “I’m going to lose weight this year,” don’t always set yourself up for success. It’s not that you’re not motivated; you just don’t have the necessary clarity. Vague, poorly-defined goals provide no roadmap and no way to track your progress, making them incredibly difficult to manage.

That’s why the SMART framework was invented. Created in 1981 by consultant George T. Doran, the SMART framework has become the gold standard in effective goal setting. It’s a simple tool that transforms vague aspirations into actionable, trackable plans.

In this article, we’ll break down each element of the SMART acronym, provide concrete examples, and offer a step-by-step guide to applying the framework for business success.

What Is the SMART Framework?

SMART goals are based on an acronym. Let’s break it down.

S – Specific

A goal must clearly define the who, what, where, when, and why. Vague goals are basically wishes; specific goals are plans. If you can’t describe your goal precisely, you won’t know when, or how, to start.

• Vague example: “Improve customer service.”
• Specific example: “Reduce our average customer email response time from 3 hours to under 1 hour by training two new support agents.”

The specific example provides much more guidance.

M – Measurable

A measurable goal is, well, measurable. It must have clear, quantifiable metrics that allow you to track progress objectively. Measuring your progress can support your motivation and show objective proof of success or failure.

• Vague example: “Increase social media presence.”
• Measurable example: “Increase Instagram followers and increase average engagement rate on posts by 5%.”

With the measurable example, you’ll actually be able to gauge success.

A – Achievable

An achievable goal should be challenging but realistically within reach, given your current resources, constraints, and time frame. Setting unachievable “stretch goals” that are entirely unrealistic can lead to burnout, demotivation, and abandonment.

Take into consideration your budget, skills, time, and team resources when setting SMART goals. A one-person startup probably isn’t sending a rocket into space. However, you could probably build a mobile app yourself.

• Bad example: “Knit a blanket for every stray cat in Athens.”
• Achievable example: “Knit a blanket for one stray cat in Athens.”

One happy kitten is better than a very burnt out you.

R – Relevant

The goal must align with your broader mission, values, or long-term objectives. If a goal doesn’t advance your main purpose, it’s a waste of time and resources. You only have so much! Staying relevant ensures you’re working on the right things, not just any things.

Ask if this goal contributes to the bigger picture of your company’s five-year plan or helps accomplish a meaningful short-term goal. For example, if your company’s mission is carbon reduction, a goal focused purely on increasing paper printing is not relevant.

T – Time-Bound

A good goal has a clear start date and a firm deadline. Without a time limit, there’s no urgency, and you might just keep putting it off. A deadline provides the structure needed to prioritize tasks and track your timeline.

• Non-time-bound Example: “Launch new product.”
• Time-bound example: “Launch new product by the end of the third quarter, September 30th.”

With a deadline, you can better hold yourself accountable.

How to Make a SMART Goal

Making a good SMART goal requires some thought. The process depends on your business’s goals and objectives, so there’s no one-size-fits-all approach. That said, this step-by-step guide can help you get started:

1. Start broad, then drill down: Take your initial idea and answer the 5 W’s (Who, What, Where, When, Why.)
2. Assign numbers: Identify the key performance indicators (KPIs) and the metrics you’ll use to define success.
3. Make sure the goal makes sense: Review your money, people, and time resources to ensure the goal is realistic given your capacity.
4. Check alignment: Confirm the goal makes sense within your long-term strategy and mission.
5. Set a deadline: Attach a specific, non-negotiable deadline.

Let’s say you want to complete a survey for your business development and sales team to use in customer outreach.

• Specific: (What) Gather feedback from existing clients.
• Measurable: (How many) Get 100 completed surveys from clients.
• Achievable: (Realistic) We can use in-house automation tools for initial outreach and follow-up to ensure survey completion, and our design and analytics teams can package the feedback in a deck for potential clients.
• Relevant: (Purpose) This project will help legitimize our product offerings and support our long-term customer acquisition goals.
• Time-Bound: (Deadline) The survey results should be gathered and analyzed by December 15..

The Final SMART Goal: “We will gather survey feedback from 100 customers and complete a pitch deck by December 15th.”