Overcoming goal setting problems in SMEs

Right, we are in 2025 and I’ve been reflecting on some of the problems we face when goal setting as an SME. However, being early January I know all the personal goals we set ourselves are probably in the bin ( I think the stat says 63% will no longer exist by the 19th Jan, so depends when you are reading this:-)). I know my beach body focus went out the window probably even before I set myself the goal! So we have plenty of time now to focus on goal setting in our businesses and having great and challenging goals (be them SMART or otherwise) to drive business success.

So here’s a list of the problems we often face as SMEs when setting inspiring, engaging, motivational goals, be they small or large. But more importantly I’ve added some possible ideas/solutions of how to overcome them.

I’m sure you and your business won’t face every problem, but have a read through the list see if one or two of them catch your attention and hopefully some of the solutions will stimulate your thinking.

1. Limited resources: SMEs typically have fewer financial and human resources compared to larger corporations, making it challenging to set and pursue ambitious goals. = Prioritise goals and focus on the most critical ones. Explore government grants, funding schemes, and business support programs.

2. Balancing short-term and long-term objectives: SMEs often struggle to find the right balance between immediate needs and long-term strategic goals. = Implement a balanced scorecard approach to track both short-term and long-term goals. Allocate resources and time proportionately between immediate needs and future growth.

3. Lack of formal planning processes: Many SMEs operate without structured goal-setting and planning mechanisms, leading to ad hoc decision-making. = Develop a structured goal-setting framework, such as OKRs (Objectives and Key Results) Invest in strategic planning workshops and training for leadership.

4. Rapidly changing market conditions: SMEs may find it difficult to set long-term goals in fast-paced, volatile markets. = Incorporate regular market analysis and scenario planning into the goal-setting process. Build agility and adaptability into your goals and planning

5. Unclear vision or direction: Some SME owners or leaders may not have a clear long-term vision for their company, making goal setting challenging. = Facilitate a visioning exercise with the leadership team to establish a clear long-term direction. Communicate the vision and goals effectively to all employees

6. Difficulty in measuring progress: SMEs may lack sophisticated tools or systems to track and measure progress towards goals effectively. = Implement key performance indicators (KPIs) and dashboards to track goal achievement. Leverage digital tools and software to streamline goal monitoring and reporting

7. Resistance to change: Employees in SMEs may be accustomed to informal practices and resist more structured goal-setting approaches. = Involve employees in the goal-setting process to foster buy-in and ownership. Provide training and support to help employees adapt to new goal-setting practices

8. Overambitious or unrealistic goals: Without proper market analysis or self-assessment, SMEs might set unattainable goals, leading to frustration and demotivation. = Conduct thorough market research and self-assessment before setting goals. Set incremental, achievable goals that build towards more ambitious long-term targets

9. Lack of employee involvement: Goals may be set by leadership without input from employees, leading to a lack of buy-in and engagement. = Encourage employee input and feedback during the goal-setting process. Align individual goals with the overall company objectives

10. Time constraints: SME leaders often wear many hats and may struggle to find time for proper goal setting and strategic planning. = Delegate goal-setting responsibilities to a dedicated team or committee. Streamline the goal-setting process and make it a regular, efficient exercise

11. Difficulty in aligning individual and organisational goals: Ensuring that personal objectives of team members align with overall company goals can be challenging in smaller organisations. = Implement a performance management system that links individual goals to company goals. Provide coaching and support to help employees understand the connection

12. Limited market information: SMEs may not have access to comprehensive market data, making it harder to set informed, realistic goals.= Collaborate with industry associations, business networks, or consultants to access market data. Invest in market research and competitor analysis to inform the goal-setting process

Addressing these challenges requires a thoughtful approach to goal setting that takes into account the unique circumstances and limitations of SMEs while still pushing for growth and improvement. I hope this has helped in some way and sets you on a greater 'goal' for success in 2025.