How to set a business goal

Let’s face it—most business owners don’t sit down and write long-term goals. Why? Because it feels overwhelming. The day-to-day hustle takes over, and it’s easier to keep doing what you’ve always done than to carve out time to think about where you’re headed.

But here’s the thing: without a clear goal, you’re running your business on guesswork. And while gut instinct has its place, growth requires something more.

This post is here to make goal-setting straightforward, practical, and—dare I say—exciting. By the end, you’ll know exactly how to write a goal that energises you and your team, gives your business direction, and sets you up for real growth.

What Makes a Great Business Goal?

A great goal isn’t just a wish or vague ambition. It’s bold, clear, and tied to your business’s purpose. For small businesses looking to scale, I recommend starting with Jim Collins’ concept of a Big Hairy Audacious Goal (BHAG).

What’s a BHAG?

Jim Collins coined the term in Built to Last, and it’s exactly what it sounds like: a goal that’s big, bold, and a little scary. Think of it as your North Star—the thing that will guide your business for the next 10-20 years.

Here’s what makes a BHAG special:

1. It’s big: It stretches your imagination and challenges your business.

2. It’s specific: You can measure whether or not you’ve achieved it.

3. It’s bold: It’s exciting enough to make you and your team want to jump out of bed in the morning.

How to Create a BHAG for Your Business

The idea of writing a BHAG might sound intimidating, but it doesn’t have to be. Let’s break it down into three simple steps:

1. Start with Your Vision

   Where do you see your business in 10-20 years? This isn’t the time to play small. Think about your dream outcome if everything went perfectly.

   Example: You’re a local coffee roaster. Your vision: “We want to be the go-to coffee brand for sustainability-conscious customers across the UK.”

2. Get Specific

   Once you have your vision, turn it into something measurable. A BHAG isn’t vague. It’s crystal clear so you can rally your team around it.

   Example: Turn that vision into a BHAG: “By 2035, we will sell 50 million cups of sustainably sourced coffee and eliminate 100 million single-use cups from landfill.”

3. Make It Inspiring

   A good BHAG should make you feel slightly nervous but deeply excited. If it doesn’t light a fire under you, go bigger.

   Example: Instead of just “grow sales by 20%,” aim for something that connects growth to your purpose: “Build the most recognisable eco-friendly coffee brand in Europe, inspiring the entire industry to follow suit.”

Break It Down: From BHAG to Actionable Goals

A BHAG sets the big picture, but you can’t stop there. To bring it to life, you need smaller goals—milestones that will keep you moving forward.

Here’s how to break it down:

1. 5-Year Goal: Where do you need to be in five years to stay on track?
   Example: "Establish regional distribution and open three flagship stores."

2. 1-Year Goal: What can you accomplish in the next year to move toward the 5-year mark?
   Example: "Launch an e-commerce platform and secure partnerships with five local cafes."

3. Quarterly Goals: Break the year into manageable chunks.
   Example: "Develop the website in Q1, run a marketing campaign in Q2, and secure partnerships by Q3."

Why Goals Matter More Than You Think

Running a business without clear goals is like driving without a map. You might make progress, but it’s hard to know if you’re heading in the right direction.

Here’s what a good goal does:

• Gives you focus: You’ll stop wasting energy on distractions.

• Rallies your team: Everyone knows where the business is headed and how they contribute.

• Measures success: You’ll know when to celebrate and when to adjust course.

Let’s Write Your Goal

Here’s a simple exercise:

1. Write down your dream for your business in 10-20 years.

2. Turn that dream into a clear, measurable BHAG.

3. Break it into milestones for 5 years, 1 year, and the next quarter.

That’s it. No jargon. No 50-page strategic plan. Just a simple roadmap that can change the way you run your business. Your BHAG won’t just sit on paper—it will pull you forward, focus your energy, and unlock the kind of growth you’ve always wanted.

So, what’s your BHAG? Let’s get to work.