What Are Short-Term Objectives?

Textbook Definition

Short-term objectives are the specific, measurable results an organization commits to achieving within the next twelve months and the next six months, each derived from and contributing to its longer-range objectives.

In Plain English

They are the handful of results you want to be true by this time next year, and by midyear. Good short-term business goals have a number in them, there are only about three per time frame, and each one moves you up toward your three-year and five-year targets.

Why Do Busy Owners Finish None of Their Goals?

Many owners can describe the five-year picture clearly. Then they get to the coming year and write down every task, every fear, and every good idea. It feels careful. In practice, nobody can tell which item matters today, so whatever seems most urgent at breakfast takes over, and by dusk something else has replaced it. Plenty gets started. Nothing gets finished.

The fix is a short list. In the book, Doctor Owl calls it fewer is stronger: about three results per rung. Every item has to pass one test, that each objective climbs a long-term rung. If it does not, it is still real work. It just belongs on the job list, not the goal list.

Signs you have this problem:

  • Your list of goals for the year runs longer than one page.
  • You have started most of them and finished almost none.
  • Each morning you pick whatever feels most urgent, and by afternoon it has changed.
  • Your goals describe activities, like "visit customers," with no number attached.
  • You cannot say which goal moves you toward your three-year target.
  • Routine maintenance tasks sit on the same list as growth goals.
A list with forty goals on it is not ambitious. It just leaves the most urgent worry in charge of your year.

What It Looks Like When Every Worry Becomes a Goal

From the Fabled Forest · Chapter 6

Sheldon and Percy Crandall ran Hard to Shell, a coastal business selling locks, checks, and night watches. Their long-range plan was solid: twelve contracts today, twenty-five in three years, all thirty-five docks and shops on the coast in five. But the shop door held forty-one slips of paper for this year, nailed up one by one. The newest simply said to finish the other forty. They had started thirty-eight and completed none.

Doctor Owl asked one question of every slip: which rung above does it help climb? Re-keying a current customer's market was routine work. A new sign, a lighthouse nobody asked them to inspect, and a third padlock came down. Percy's backups stayed as his normal job, not a goal. One buried slip, visiting every uncontracted dock and shop to ask what they feared, was the one that actually climbed.

Thirty-four slips moved to a job board, a few went in the stove, and six remained. They were turned into results with numbers: twenty contracts and 3,200 coins in one year, sixteen contracts and a trial night watch paid for by four businesses in six months. Sheldon said the door looked empty. Percy said it looked finished. That afternoon a net maker they visited signed on the next week.

Sheldon and Percy's story is Chapter 6 of Strategy for Small Businesses, Book 6 of Dr. Paul's Fabled Forest Business School Series.

How to Set Short-Term Business Goals in 4 Steps

Start from the top of your plan, work down, and keep the list short enough to read in one breath.

  1. Begin with your three-year objectives.

    Ask what has to be true twelve months from now for you to be clearly on track. The Crandalls needed twenty-five contracts in three years, so twenty by next year was a real step. If you have not set the bigger targets yet, start with long-term business objectives.

  2. Write results, not activities.

    "Call every lead" is something you do. "Sign 20 customers" is something you can check off as true or false. Give every objective a number so you can say yes or no at the end of the year.

  3. Set the six-month rung the same way.

    Half a year is your early warning. If sixteen contracts by midsummer is the midpoint, you will know in June whether the year is working, while there is still time to adjust. These six-month targets then become the base for operational planning at the monthly level.

  4. Move everything else to a job list.

    Tasks that keep the business running still matter. They just are not objectives. If sorting the list is hard, the guide on how to prioritize work walks through it. Keep about three objectives per rung and let the job list carry the rest.

Dr. Paul's Insight

The most common mistake Dr. Paul sees is labeling every important task an objective. Tasks keep the doors open. Objectives move the business up toward the bigger picture. When owners separate the two, the goal list usually shrinks by more than half, and the team finally knows what the year is for.

Sample: The Crandalls' Two Short-Term Rungs

Here is how Hard to Shell's short list climbs toward its three-year target. Copy the layout and fill in your own numbers, starting from the rung above.

Business: Hard to ShellOwners: Sheldon and Percy Crandall
Today12 contracts at about 200 coins a year each, roughly 2,400 coins in.
Three-year rung25 contracts, a landing watch on three nights weekly, and 5,000 coins yearly.
One-year rung20 contracts. A weekly paid night watch at the landing. 3,200 coins over the year.
Six-month rung16 contracts. A one-month watch trial with four landing businesses paying. 1,500 coins.
Moved to the job board34 slips, including re-keying a current customer and backing up records.

Illustration from the book. The 3,200 comes from averaging about 16 contracts across the year at 200 coins each.

Watch: Keys to Success and the Internal Business Plan

Two short videos from Dr. Paul. One covers the keys to success section of a business plan, and the other walks through a sample internal use plan, where near-term goals do most of their work.

Business Plan Writer's Tip #87 for Glendale, AZ.: Keys to Success in a Business Plan

Dr. Paul Borosky, DBA, MBA. (3:39)

What's in an internal use business plan. Plan Sample Reviewed

Dr. Paul Borosky, DBA, MBA. (9:02)

Read a Passage From Chapter 6

Chapter 6 · Short-Term Objectives

Forty Locks on One List: Two Crabs and a Year

“Sheldon,” he said. “Which of these forty climbs to twenty-five contracts?”

Sheldon looked at the door.

“All of them,” he said. “Indirectly.”

“Directly,” said Doctor Owl. “Which of these, if you finish it this year, puts you nearer to twenty-five creatures paying you to keep their docks and shops safe?”

Sheldon looked at the door for a long while. He looked at the fish market slip, and the lighthouse slip, and the third padlock on the boathouse.

“I don’t know,” he said at last. It was not a thing Sheldon said.

Read how the Crandalls cut forty-one slips down to six in Strategy for Small Businesses, Book 6 of Dr. Paul's Fabled Forest Business School Series.

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Short-Term Goal Questions Owners Ask

How many short-term business goals should a small business have?
About three for the next year and about three for the next six months is a good starting limit. You may need four. If you have ten or more, most of them are probably tasks.
What is the difference between a goal and a task?
A goal is a result with a number that moves the business toward its long-term target. A task keeps the business running, like routine maintenance or bookkeeping. Both matter, but only goals belong on the objective list.
Why set six-month goals if I already have one-year goals?
The six-month rung tells you at midyear whether you are on track. Without it, you often find out in December that the year missed, when it is too late to change course.
What if one of my goals does not connect to my long-term plan?
Ask whether it truly moves you toward a three-year or five-year target. If not, it may still be good work, so move it to your job list. If it matters a lot, your long-term plan may need a second look.

Written by Dr. Paul Borosky, DBA, MBA, business consultant and author of Dr. Paul's Fabled Forest Business School Series. Want help turning a long goal list into a short plan your team can finish? See growth plan and consulting options.

This page is for general educational purposes only. It is not legal, financial, or other professional advice. Dollar figures are illustrations. The Fabled Forest and its characters are fictional. For decisions about your own business, consult a qualified professional.