Setting goals can help you to be clear about what you want to achieve, and at the same time give you a way to measure your progress. It can be helpful to break your goals up into short term (first year), medium term (2 - 5 year) and long term (5 - 10 year) goals.

Examples of short term goals include:

• Set up a campground with 15 camp sites which is ready for business by September 2007.
• Find a business mentor to help me write an effective business plan by June 2007.
• Save $2,000 by the end of this year to pay for the purchase of a new computer.

Examples of medium term goals include:

• Make a profit of $5,000 per year, by my second year.
• Employ my daughter full time to help me run the business once my turnover exceeds $25,000 per year.

Examples of long term goals include:

• Save $40,000 by my forth year to build two new cabins.
• Be able to employ someone so I can take weekends off to be with my family by year five.

Following the SMART formula can help you when setting your goals. SMART Goals are:

Specific - what exactly would you like to achieve?
Measurable - how will you know if you have succeeded?
Action oriented - does it have an action that you can actually 'do'?
Realistic - is it really achievable?
Time bound - does it have a deadline?

Once you have set your goals, check that they follow the SMART formula.

For example, "I want to get rich" is not a SMART goal as it is not specific or measurable and it has no time limit. Also it may not be realistic!

To help you prioritise your goals, the Small Business Development Corporations Home Based Business Network have published a guide to goal setting (Click on the link 'Guide to Goal Setting', which opens a PDF).