In this video, Pat Miller shares an important insight about setting realistic goals. During a mastermind session, the group set overly ambitious goals due to excitement, leading to only one person achieving their target after 90 days. This experience taught Pat that goals need to be realistic, but with a twist—referred to as "realistic in italics."
Pat explains that when setting a goal for the next 90 days, one should first assess historical performance to establish a baseline. Then, consider what behaviors and activities can be adjusted to achieve a higher goal than the previous year. While dreaming big is encouraged, it's crucial to have a clear plan to reach those dreams; otherwise, they remain just dreams.
To set realistic goals, one should:
- Understand seasonality and past performance.
- Calculate the number of customers needed to achieve the desired growth.
- Determine the closing rate and the number of leads required.
- Estimate the impressions needed to generate those leads.
The key is to focus on controllable behaviors and actions. Without realistic goals, there's a risk of feeling like a poor operator or believing the business is failing, even if there has been growth. Setting realistic expectations helps in accurately measuring success and maintaining motivation.
Pat emphasizes the importance of spending more time on effective strategies and setting realistic goals to achieve better outcomes.
About the Author
Pat Miller is the founder of the Small Business Summary newsletter and a passionate advocate for small business owners.