ChannelNext 2014

Set a Profit Target

Establishing an annual gross and net profit target/goal sounds simple, but too few businesses actually establish such targets. And some of those that do don't focus on them. Most businesses simply allow profits to fall where they may. Setting a target for profitability should follow the same rules that should be followed in establishing any goal, objective or expectation. They should be realistic, attainable and demanding. Setting a target that forces managers and employees to stretch a little is good. Setting one so high that they can't possibly achieve it sets up a scenario that includes frustration, damaged morale and loss of credibility. If you don't establish profit targets, begin doing so. And be sure to keep yourself and others focused on making those targets.

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