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"The longest journeys begin with a single step."

That old saying has huge implications for the home business owner. So often, business owners become hyper-focused on the potential long-term success of their business. In doing so, they lose the ability to plot the necessary course to get from now to then.

Setting realistic goals is about slowing down the thought process. It's about taking a deep breath, and being realistic. Failure to set realistic goals, keeps you swinging for the fences, when you all you really need to worry about is making it to first base.

Here are some of the crucial steps in setting realistic goals for your home business:

Step #1:
Determine what is realistic for your industry. While making $50,000 in the coming year may sound like a great goal, it may be completely unrealistic compared to owners of similar businesses. Hence, you need to do your homework and find out what kind of revenue, expenses, and growth are typical for businesses similar to yours.

Step #2:
Determine what amount of time you can realistically pour into your home business. If you are only planning to pour in half the time of a typical owner, you may only be able to realistically expect half of the profits.

Step #3:
Assess the supply and demand for your product or services. If you're starting a business in a young and booming industry, it's okay to be fairly optimistic about your goals. On the other hand, if you're starting a business in a mature industry with a lot of local competition, you might want to guess a little more on the conservative side.

Step #4:
Select a reasonable deadline. Goals that are over 3-6 months in execution are often too far into the future to motivate real action. Choosing short-term goals will help keep you focused on what you need to do today and this week, instead of what you need to do in the next six months.

Step #5:
Make sure that your goal is measurable in a variety of terms. You should be able to evaluate your progress on a goal from both a time and money standpoint. You should also make sure your units of measurement are small and frequent enough to be able to adjust your plans, in time to reach your goal.

Step #6:
Run your goals by another business owner or mentor. Since we are generally optimistic about how much success our new businesses will enjoy, getting an outside perspective is crucial. See if you can find another business owner elsewhere in the country to swap goals and provide feedback.

Step #7:
Revisit your goals daily. Whether you tape them to your dashboard, or recite them in the shower, you need to keep your goals at the front of your mind. Our thoughts affect our actions, and reminding ourselves of our goals moves us towards them.

When you reach the deadline for your goals, give yourself an honest review of the whole process. Don't just concern yourself with whether or not you hit your goals, but also how effective and realistic you were at setting them.

After an honest review, start the process over. Strive to outdo your last performance by just a little bit. Over time, you'll reach more and more of your goals with each new round of goal setting.

Learn more about this author, Ken Clark.
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