How to Create Long-Term vs. Short-Term Goals

As a business owner, setting both short-term and long-term goals can help you visualize and achieve success. Here’s the difference between the two types of goals, examples of each, and tips for creating measurable and achievable short-term and long-term objectives.

The difference between short-term and long-term goals

While there are many different types of goals, the two overarching categories are short-term and long-term goals. In general, short-term goals can be finished in under a year—sometimes just a few months—while long-term goals typically take at least one year or more.

In many cases, a long-term goal requires and consists of many smaller, short-term goals. These smaller goals break the “big picture” vision down into bite-sized tasks. For example, to achieve a long-term goal like launching a new marketing campaign, you may have to clear a few short-term goals, such as researching a niche market, creating a landing page, and auditing your brand strategy.

Examples of short-term and long-term business goals

Your short-term goals may vary depending on your specific business and its unique needs. However, here are some common short-term goals to consider as a starting point:

• Boost social media engagement by 15% within the next quarter.
• Launch one new product feature by the end of the current fiscal year.
• Increase customer satisfaction scores by 5% over the next six months.
• Acquire 100 new qualified leads through online marketing campaigns in the next three months.
• Reduce customer churn by 2% by the end of the year.

Long-term goals should work in tandem with short-term goals. Some examples include:

• Achieve a top-three market share position within the next five years.
• Expand into two new international markets within three years.
• Increase annual recurring revenue by 200% over the next five years.
• Grow brand awareness and recognition by 50% within the next two years.
• Achieve a 90% customer retention rate within the next three years.

Goal-setting frameworks

Businesses often rely on structured goal-setting frameworks to ensure objectives are both clear and quantifiable. Here are four popular frameworks:

SMART goals

The SMART framework helps you set goals that are specific, measurable, achievable, relevant, and time-bound. This requires clearly defining the goal, planning how to measure progress, ensuring the goal is realistic, aligning it with broader objectives, and setting a deadline. Advantages of SMART goals include enhanced focus and accountability; however, the structure’s rigidity and focus on short-term outcomes could pose a disadvantage in some cases.

Objectives and Key Results (OKRs)

The OKR framework helps define and track objectives and their measurable outcomes. Objectives should be significant, concrete, and action-oriented, while key results are specific, time-bound, and verifiable. Regular check-ins and reviews help businesses stay within this framework. It’s important to note that while OKRs promote alignment and transparency, they can be challenging to implement early in your business journey.

Key Performance Indicators (KPIs)

KPIs determine how effective an organization is at achieving its goals. They provide clear performance evaluation but can lead to an overemphasis on metrics and neglect qualitative aspects. Common KPIs include monthly website traffic, the average cost to acquire a new customer, or the percentage of sales leads that convert into paying customers. Businesses also track KPIs like customer churn rate, employee satisfaction scores, and revenue per employee to gauge overall performance.

Goals pyramid

This framework breaks down larger goals into smaller, manageable tasks, built upon each other. Each level of a goals pyramid supports the next, creating a structured approach. This structure helps you set objectives, organize tasks hierarchically, and celebrate achievements. However, while the pyramid provides a clear road map to follow, it can also limit flexibility.

Tips to create long-term and short-term business goals

Here are three steps to take when planning your short-term goals:

Identify long-term goals

Knowing your long-term goals will help you break them down into smaller, bite-sized goals to work through before you reach your endgame. Evaluate and identify a goal that would take a considerable amount of time and effort for you to reach, such as opening a brick-and-mortar store.

Break down long-term goals into smaller steps

Long-term goals can feel overwhelming without a clear path. A key strategy is to break these down into smaller, more manageable short-term steps. Using goal-setting frameworks like the ones highlighted above can aid this process. For example, when using the goals pyramid framework, the ultimate objective sits at the top, naturally cascading down into supporting annual, quarterly, and even monthly tasks. This hierarchical structure ensures that each smaller goal directly contributes to the larger desired achievement. And using the SMART framework for smaller goals ensures that they are clearly defined and achievable. Remember, whichever frameworks you choose should provide clear milestones on the journey toward long-term success.

Track progress toward your goals

Consistent progress tracking helps ensure your business stays on course for both short- and long-term goals. Instead of relying on informal methods, consider structured techniques. This could involve using visual dashboards to monitor metrics or project management tools to track the completion of specific tasks. Regularly scheduled check-ins, whether weekly for short-term goals or monthly for longer ones, allow you to assess whether you are on track and identify roadblocks. You can then make timely adjustments to strategies and ensure that daily and weekly activities are indeed propelling you toward your ultimate objectives.

Adjust goals as priorities change

As time goes on, your goals may change. Check in with yourself as often as you can and don’t be afraid to adjust, tweak, or even scrap your plans to start anew in your goal’s journey. Use your regular check-ins to make sure your goal is on the same page as it was when you began.

Sean Peek contributed to this article.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

The Caldwell Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike. The Chamber has been granted license to publish this content provided by the U.S. Chamber of Commerce.