UNIT 4: SETTING ENTREPRENUERIAL GOALS
Key Unit competence: To be able to set achievable entrepreneurial goals
Introductory activity
Imagine that you are dreaming of standing at the top of Mount Karisimbi, Rwanda’s highest
mountain. Do you think that this dream could become a reality one day? How should you go about
achieving this dream?
4.1. Meaning of an entrepreneurial goal
1. What is a goal?
2. Think of an example of a goal.
Goals are defined as the lifelong aims, which an individual or entity endeavors to achieve/pursue.
A goal, in business, describes what a company expects or hopes to accomplish over a specific period.
People commonly use the term “entrepreneurial goal” with the same meaning. On a personal level, agoal is an idea of a desirable or future result that people envision, plan, and commit to achieving.
Reaching a short-term goal can be like harvest, it is a good step on the way. To be able to achieve our goals we need people and resources around us. That is why our personal development depends on our goals. For us to achieve our goals, we imagine ourselves as a fully-grown tree with fruits, thorns, roots, stem, and many branches where.
▪Roots mean values and skills
▪The stem means areas in our lives that give us strength e.g., churches, families, friends etc.
▪Branches mean our main interests and goals (what we always want to do or accomplish)
▪Leaves mean resources that will be needed to reach our goals i.e., people, information, etc.
▪Thorns mean obstacles or challenges we always meet toward achievement of our set targets
▪Fruits mean the benefits an individual achieves in relation to the set goal e.g., earning a salary after becoming a doctor.
1. Study the picture below and answer the questions that follow.
Explain the following parts of a tree in relation to your personal development goals. What do the following represent?
1)Roots……………………………………………………………………………………………...…..
2) The stem (tree trunk) ……………………………………………………………………………..
3) Branches…………………………………………………………………………………….….……
4)Leaves…………………………………………………………………………………………...……
5) Fruits…………………………………………………….………………………………………...…
6)Thorns ………………………………………………………………………………………
….……
4.2. Characteristics of a goal
Using your knowledge acquired in O’level, explain the meaning of a SMART (Specific, Measurable, Attainable, Realistic and Timeframe) goal.
Sometimes a goal seems like it is just a dream. You may wish to do something one day that never seems to happen but it takes courage, patience, and hard work to get where we desire to be. SMART is an acronym that stands for Specific, Measurable, Achievable or Attainable, Realistic, and Timely. Therefore, a SMART goal incorporates all of these criteria to help focus your efforts and increase the chances of achieving your goal
SMART is a useful tool for setting goals that you can reach. When we set a SMART goal, we can direct our actions into achieving the goal.
Therefore, a good goal should be characterized by Specific, measurable, attainable, realistic, time bound aspects.
UMULISA, a head teacher at UBUMWE secondary school is preparing to address and welcome new students joining associate nursing program at her school. The theme was “how to set a SMART academic goal”
Question
In not more than 100 words, explain what would be entailed in her speech as the meaning of a SMART goal.
4.3. Strategies of setting entrepreneurial goals
As a student of entrepreneurship:
a. Set at least one entrepreneurial goal?
b. Identify unexpected life events that might come your way and prevent you from accomplishing your goal?
c. What can you do to overcome/avoid such events and minimize their impact?
The first step to success is knowing where you want to go. The second step is having a plan to get there. Your goals are your roadmap, follow them and you will be on your way to success. Some strategies of setting entrepreneurial goals are discussed below:
1. Identify your goal
First, within the cloud area, you should write down the goal that you would like to achieve. It is better to use keywords only and be as specific as possible.
2.Identify current reality
Write down a list of keywords that define your current reality by basically outlining where you are right now in your life. here, you list your current life circumstances. Include everything that is good, bad and ugly.
3. Identify desired reality
Write down a list of keywords that define your desired reality by essentially defining the type of life that you would like to live on the date you specified. Be as brief as possible at this stage and avoid going into too much detail.
4.Identify obstacles
Within the gap between current and desired identified realities, write down all the obstacles that are standing between your current reality and your desired reality. Again, write down only keywords without going into too much detail.
5. Identify key resources
Outline at least five key resources at your disposal that you could use to help you overcome the obstacles standing between you and your desired reality.
6. Bridge the gap
Now that you are clear about where you are, where you want to be, the obstacles standing in your way, and the resources you have at your disposal, it is time to build a bridge that will take you towards your desired reality.Note: Setting goals is more than deciding what you want to do. It involves figuring out what you need to do, to get where you want to go, and how long it will take you to get there.
The steps listed below are posed in question form while setting entrepreneurial goals.
In order to set smart goals, the following steps should be observed:
1. Where do l want to be in the next period of time e.g., 4 months, 6 months, one year etc.? Consider the example of a goal, I want to start a big business project after my secondary studies i.e., after two years. This shows exactly what the person wants to be in next two years.
2. What must I know to get there? for example to start my business, I will need to discover which type of business to get involved in, I have to know how many are doing it, how they do it, for whom they produce (market), prepare my Weaknesses, Strength, Opportunities available and Threats (SWOT analysis) and where to do the business from.
3.What steps must I take in order to know and be able to do these things?
For example, I have to prepare a business plan i.e., production, marketing, organisation, financial, action plans etc. Obtain a trading license and a business registration among others.
4. What abilities and experience do I already have that are going to help me take these steps?
Refer to the qualities of an entrepreneur. Do you possess any?
5. What obstacles might be on my way and how can l deal with them?
You have to list the challenges that you may meet on the away to achieving your goal. This is because you don’t expect everything to go on smoothly. A lot of challenges can be met. Refer to the above goal in the question, suggest possible challenges that can be met.
Many of your responses may be:
▪ Inadequate funding (capital)
▪ Small market size, may be because of strong competition
▪ Strategic business location.
6. What should I do first, second and so on?
In setting goals, one has to specify short term goals first then the long-term goals, a person can suggest short term goals stating when it should be achieved, and resources needed to achieve them.
a. Write a SMART goal for a business project you want to start after school.
b. Examine the major steps that you would put into consideration in order to achieve the above goal.
4.4. Steps of creating an action plan for entrepreneurial goals
Based on entrepreneurial goal set previously, make a plan in order to achieve that goal in the period set.Use template below
An action plan is a useful tool that can help you to reach your goal. A plan helps you determine:
- What needs to be done?
- When the tasks must be done?
- Who will do the tasks?
Step 1:
Create a list of the tasks that need to be done. Start each task with a verb (doing word) because a task is something that you can do.
Step 2:
Break down the tasks into short-term and long-term actions. To identify short-term actions, ask yourself ‘What can I do right now that will bring me closer to my goal?’
Step 3:
Write a to-do list of actions and include guidelines (describe how to do each task).Step 4: Create a timeline for your actions and include milestones.
A timeline is a tool that shows the progress of a task, time a project will take and how each task fits into the overall project. The most common type of timeline is the bar chart or Gannt chart. The chart shows the activities that need to be done. The chart also shows the start and finish date of each activity. It shows how the activities relate to each other. For example, if you build a house, you cannot fit the roof before you build the walls.
How to create a timeline
Step 1 Draw a graph where the X-axis (horizontal line) represents the time period for your project. You can use days, weeks, or months as the time units. The Y-axis (vertical line) represents activities or tasks. The activities can be practical such as designing, constructing, or installing. They can also include periods where there are no tasks, such as holidays or waiting for approval for your plans. Waiting time also influences how long it will take you to complete the project.
Step 2 Add tasks to your graph. If the first task (A) will take two weeks, then fill in a bar across two weeks on the X-axis. The next task (B) will take one week and can only start when task A is complete.
Step 3 Identify start and end points for your project. Write the date when you can start the project. When you have added all the tasks, you can also see the date when your project will be complete.
Resources
To reach your goals you also need resources. Those resources can be money, materials, people, etc. The resources must also be included in an action plan.
Importance of setting goals
▪ It helps in allocating scarce resources▪ Setting goals is important in decision making
▪It’s a tool for planning
▪It helps a person to stay focused on achieving the set targets
▪It’s motivating to the entrepreneur
▪It helps to allocate tasks to employees and setting employment targets
▪It helps to avoid wastage of resources
Achieving SMART goals
An action plan is a tool that you can use to break up a large goal into smaller actions. The action plan uses the four Ws (What, When, Who and whenever) to reach the goal.
A timeline is a tool that shows the chronological progress of a task. It has a start date, end date, all the activities that must be completed and how activities relate to one another. To reach a goal, you need to allocate the correct resources.
Your class has been appointed as festival coordinators for the annual Umuganura celebrations. The event occurs on the first day of August. This year, you have been asked to plan a festival with decorated trucks and musical processions.
You are given the following list of responsibilities:
▪ Create a route for the procession through your community.
▪ Ask the cell council for permission if you need to close roads.
▪ Arrange a theme for your truck to celebrate the harvest and the importance of agriculture for Rwanda.
▪ Arrange bands and musicians and other forms of entertainment.
▪ Allocate spaces for stalls that offer food and drinks.
▪ Advertise the event to attract as many visitors as possible.
To plan the festival, you need to:
▪ Draw up an action plan where you identify the tasks and resources needed.
▪Develop a timeline that shows start and end points.
Answer the following questions:
1. a) What are the obstacles that you need to overcome for better planning of the festival?
b) Which skills do you need to run the festival?
c) Which opportunities does this festival give your community?
2. a) Write a smart goal for a business project you want to start after completing your studies in associate nurse program.
b) Describe the major steps that you would put into consideration in order to achieve the above goal
1. Draw a goal tree for one of your personal career goals.
2. Jeremy wants to improve his results in mathematics. He set the following goal: I want to increase my grade from 80% to 90%. Compare his goal to the SMART framework.
a) Which of the SMART elements did Jeremy incorporate in his goal?
b) Which SMART elements are missing?
End of unit 4 assessment
Read the case study and answer the questions that follow.
The future is bright for Haguminshuti’s chicken empire. Haguminshuti discovered farming opportunities in 2003, while working on a project in Kanombe. Here he developed poultry farming projects for people living with HIV. The work gave him an idea to start a business in agriculture. However, it would take him many years to make his dream a reality. After learning about poultry farming in the United States, Haguminshuti returned to Rwanda. His first application for a bank loan was rejected. He did not have collateral security (property or other wealth) for the loan. Haguminshuti also faced other difficulties such as an irregular supply of chicken. He also had problems with the quality of the chicken. However, he did not give up on his dream. He continued applying for funds and eventually the Rwanda Development Bank agreed to fund the project. There were many conditions for the loan. He had to invest all his savings to get the project running. Today, he runs a successful poultry farm in Bugesera district in the Eastern Province. The farm contains four chicken houses that each house accommodates 25 000 chicken. His customers include supermarkets such as Nakumatt and Simba. Haguminshuti is an ambitious businessman and he has further plans (goals) for his chicken empire. He is currently looking for investors who can assist him with his plans to increase production. He estimates that he can increase meat production to 70 000 kilograms in nine months. Then he will spend the next six months increasing production at the chicken hatchery from 60 000 to 300,000 chicks per week.
i. What was Haguminshuti’s goal in 2003?
ii. Describe some of the obstacles that he had to overcome to reach his goal.
iii. The poultry farming is still growing. Use SMART goal concept to list his growth goals.
iv. Create a timeline to assist Haguminshuti with planning.