Have you already decided on your (business) goals this year?

In our previous SMART post we discussed the concept of SMART method and its advantages in life and business. You can read about it here:

How setting SMART goals can help your business?

Let’s just review the possible benefits of making any goal SMART:

1. Focuses teams on specific tasks. A specific and realistic goal is easier to break down into tasks to achieve it.
2. Allows you to evaluate how close we are to the goal. It is convenient for teams to track the result when the goal is measurable.
3. Simplifies team communication. All team members know what result the company is striving for, no time is wasted on explanations.
4. Increases the chances of success. The SMART method simplifies the goal-setting process and the probability of setting the right goal increases markedly.
   

What to consider when setting SMART goals:

The future development of the company depends on the correct setting of goals – how quickly we grow, enter new markets and outperform competitors. It is impossible to formulate ideal goals the first time, it is important to correct mistakes and set new goals based on the company’s previous experience.

The most common mistakes when setting SMART goals are:

High expectations

The goal should be in line with the company’s capabilities. Strive to improve performance is good, but it does not mean that you need to set impossible goals for the team. The problem of inflated expectations lies not in the formulation of the goal, but in how the company correctly estimates its resources. If a brand has only three seamstresses, the goal of “increasing the company’s profit to 100 million rubles per year” is greatly overestimated.

Irrelevant Goals

The goal should drive the company forward and be in line with the company’s strategy. If the main income of the company is from the release of monthly collections, it is in this direction that the main efforts should be invested.

Lack of flexibility

In the process of achieving the goal, many things can change: unforeseen circumstances, competitors have launched a new product, or a crisis has occurred. It is important to analyze the situation in time and adapt to changing circumstances. A SMART goal is not a commandment, it can be abandoned if necessary.

Lack of motivation

Specific people work to achieve the goals, so it is important to take into account the human factor. For employees to achieve results, they need specific and achievable tasks, as well as a favorable atmosphere within the company.

Now let’s look at the pricing strategies that you may want to use.

First of all, you have to accept the idea that in this kind of business YOU are the PRODUCT. Or something that you are good at.

Say it to yourself and try to be realistic when defining the price for your services.

Here are 3 possible strategies for setting the price:

1. Hourly rate

The simpliest way to set a price is by hour. It is easy to understand for customers and easy to control for you. Most people are getting paid by hour as well as most freelances. Choose this pricing strategy when timing is essential for a customer.

However, this method limits your potential income as there are only 24 hours a day. So, find a way to also utilize other pricing strategies if possible.

2. Package service

That means that for a flat fee you are ready to do a task or a combination of tasks regardless of how much time they will take.

For instance, “writing an article” for 150$ is a package. But “writing an article, searching for the keywords, posting it on WordPress for 400$” is a more valuable package.

3. Combination

This type means you offer a package with a certain amount of hours available for the customers. A classic example would be a language school providing you an access to tutors for 100 hours. You can invent your own variation here.

How much should I charge?

STEP 1: Start with:

a) Calculating your costs

b) Adding desired profit

Do not forget such factors as:

• the cost of the software
• WIFI
• marketing tools
• cost of your home office
• taxes

STEP 2: Check out the competitors

Do not compare yourself to those having a different (esp. lower) level of experience or expertise. Value yourself!

Illustrate

The best thing you could do is to create a website telling a story of yourself (your business). Then you will have something to market and to work with.

Have you also told yourself that it is not the right moment? It is the right moment! And here is why:

For a beginner the best business to start is a service business, that is any kind of business where you sell services. Do you have any skills or experience? Sell them! This way you save money as you don’t need to create products or goods. The examples of such businesses are:

• You become a coach or a consultant and sell your expertise.
• You provide a service for homeowners such as house painting or cleaning.
• You sell services online to individuals or other businesses, for instance, social media marketing, website design,  or virtual assistant services.

How is it different from being an employee. It’s quite different. You are in charge. You are building a future asset that is  — your business.

Some reasons service business is the easiest:

You need little to no startup cash

• You don’t have the expenses of renting office space;
• You don’t have to develop a product;
• You don’t have the expense of hiring employees;
• Your expenses might be as little as the cost of a website (or if you prefer old-fashioned way – business cards and flyers);

Fast to Start

This business is the fastest type to start as you don’t need a lot of advance preparation.

• Launch your local consumer service business by spreading the word in your neighborhood.

• If you decide to do consulting for individuals or businesses, establish a profile on LinkedIn, join Fiverr, Freelancer.com and Upwork. These marketplaces are a great way to get clients.
• You don’t even need your own website at first. However, this would be your step number two.

With any service business, it’s critical to find the right marketplaces and referral sites.

Generate money fast

Service businesses bring money quickly. In most cases you get paid within several days or weeks.

Offers a decent profit margin

These businesses have some of the highest profit margins as you don’t need a lot of inventory to perform a simple service. As a result, more of your cash drops to your bottom line.

Start it on the side

It is possible to run a service business on the side while still in school or employed. This is the best part about starting a service business. Set your own goals and your own tempo. Then gradually build a business, keeping your financial risk.

Develop other skills

As a bonus, while your are starting your own business, you will have to work on some other skills. You do not have to be a tech person to start your online presence! There are plenty of services suggesting ready-to-use solutions, for example, Leadpages. Start with 14-day free trial and if you feel like it works for you, invest $27 for a Standard plan with 1 website, domain and tech-support!