Setting Expectations for Your New Business

Have you ever heard the quote that expectations set you up for disappointment? As discouraging as this might sound for new business owners, one of the fastest ways towards failure is not properly setting expectations for your new business. What you can do better as a new business owner to avoid disappointment is not only setting expectations, but doing so effectively.

If you have ever been stuck or confused about setting expectations for your new business, you are in the right place. This article will explore different ways to set your expectations and also manage them effectively.

Clarify your Expectations

Expectations might sound trivial to you; however, you need to understand they are linked to your goals. Your expectations ultimately determine the type of goal you set for your business. Therefore, make them clear as much as possible. Also, please don’t make the mistake of making them exist only in your head; put them into writing. Keep them simple as much as possible, and let those expectations guide your business. It must be simple enough for others to understand these expectations and not just you.

Use the SMART Framework

Following the SMART framework ensures you are not just setting an expectation on the paper. Those business expectations will become a benchmark to measure growth, so they must be achievable. Using the SMART framework means your expectations must be:

• Specific: State what you want to achieve. Do you want to reach more customers? Or do you want to increase your return on investment?
• Measurable: Put some numbers; it might be a 20% increase in profit or 100 sales leads.
• Achievable: Avoid any delusion as much as possible. The expectations must be realistic.
• Relevant: It must be relevant to the goals and objectives of your business. Anything out that will be a distraction.
• Timebound: Set time for those expectations. You don’t want to pursue them for the rest of your life. Plus, having a timeframe enables you to focus more on achieving them.

Communicate Expectations

Communicating your expectations is important, especially if you already have a team or employees in your new business. It would be best if you made them aware of these expectations; it will ensure everyone is working towards the same goal. More than that, you need to develop a way to ensure they don’t lose focus on these expectations. You can do these through meetings with them.

Also, performance reviews are another way to make your team members or employees stay abreast of these expectations. There should be a monthly or quarterly performance review to see how close the business is to those expectations. This way, everyone can keep their eyes on the ultimate goal.

Receive Feedback on Expectations

Develop a way to get feedback on your expectations. As a new business owner, you might not have a team to review your expectations, but your friends and family members can. While setting your expectations, reach out to someone you trust and ask for their honest feedback. Getting other people’s perspectives is one of the best ways to set achievable expectations.

Conclusion

Setting expectations is important for every business owner. Once you fail to set an expectation, it might be your countdown to failure as a business owner. This is because your expectations must be linked to your goals and vision for the business. Solidify your goals and vision for your business by checking out our guide on How to Create a Business Plan. Remember, ambiguous expectations can lead to poor business performance, so this is your chance to make things right from the beginning.