Are you really SMART?
Well, of course you’re smart. You started your own business. You’ve been running it for some time. It’s doing quite well, thank you.
What we’re really asking is, are you running your business the SMART way?
- Specific
- Measurable
- Agreed Upon
- Realistic
- Time Based
Nothing wrong with that – but somehow, it seems you spend more time making up rules than creating rules that really work for your business. Use the SMART framework to assess whether your business is performing its best – or if it could stand some improvement.
Specific
- Do you have well-defined parameters for every project? Does your client know what he or she is getting for the money? Are clients continually asking for more? Are you constantly being asked to clarify quotes and proposals?
- Do your team members know what’s expected of them? Do they know exactly when, what, and how to deliver each piece of the project? Are they missing components or putting extra work in when it isn’t necessary, and then demanding pay?
If everyone on both the front and back end of your business seems confused about what’s really on the table, then you’re probably losing money because you aren’t being specific.
Measurable
- Do you know whether each goal is obtainable by a certain date? Are you certain it can be delivered Friday? How do you know? Do you have a series of checkpoints to make sure? What happens if there’s a glitch or a sudden absence in your team? What will you do? Can you recover? Do you have a back-up plan?
- Do you know when the project is complete? The answer may seem obvious, but can you measure exactly when you turn in your first draft? Your second? When clients review it and say it’s good? Do they have a specific amount of time to review it?
If you can’t measure the time between conception and payment accurately, you’re losing money.
Agreed Upon
- Do you have an agreement with all involved about the goals of each project? Do you have a contract with all the specifics laid out? Can you refer back to it to clear up any potential issues or were there loopholes that you’re now stuck honoring? Is there a clause that explains to clients what happens and how to renegotiate if they want more?
- Do your team members have an agreement with you to deliver on time and on budget? Do they have a process for communicating issues? Are there repercussions for not delivering on time, and is your team aware of them?
If you’re operating purely on good faith or by the seat of your pants with each project, someone is going to slip up somewhere. That misunderstanding or miscommunication is going to cost you money.
Realistic
- How many projects can you and your team take on in a given period? Can some members work faster than others? Have you assigned projects accordingly? Have you taken on more than you can chew? Do you and your team always seem to be scrambling?
- What are the limits of your skills and those of your team? Are there projects you’re simply not capable of doing? Do you know when it’s time to say no?
If you’re just accepting and assigning projects willy-nilly regardless of availability and competence, someone is going to drop the ball somewhere. It’s going to cost you.
Time-Based
- Do you know how much time a particular project takes to complete? Does it seem like each project is taking a different amount of time? If a client asks for an extra piece, do you know how much time you should add to the project? Do you have stats to compare with previous projects?
- Do you know if a team member is taking too long on a project? Can you budget pay and income properly? Does it vary often, leaving you always stressed? Do you have the ability to assess when someone is simply wasting time as opposed to dealing with something more difficult than you’d thought?
If you’re figuring out the time allotment for a project based on vague guesstimates, you’re probably losing money.
Wondering how you can SMARTen up your business? Contact us today. It’s what we do.