The importance of goals

Written by Richard Baldwyn ATT, CTA
January 21, 2015

I talk a lot about the importance of having goals and I can probably hear the groaning as you read this right now!

But the reason you hear this one so often is because it's true.

Now there's a story that goes around that you may have heard about a class at Harvard/Yale. The story goes that those students who set goals at the beginning of their careers achieved much, much more than those that didn't.

Well, I've tried to find out whether the story's true and have failed miserably.

However, I did come across a story about a real study with 267 participants.

So the experiment went like this:

There were 5 groups with different instructions:

  • Group 1: Just 'think' about your goals
  • Group 2: Write your goals down
  • ​Group 3: Write your goals down and put an action against each goal
  • ​Group 4: Write your goals down and put an action against each goal and send your goals to a friend
  • Group 5: Write your goals down and put an action against each goal and send your goals to a friend, and send your friend a progress report

And which group did best?

No prizes for guessing group 5.  And that's because written goals together with accountability are your best chance of success.

So sit down with a blank bit of paper and start to draw out what your business journey will look like. Put in some goals that you want to achieve in the short term and in the long term.

For the short-term I normally suggest clients put what they'd like to achieve in the next month, the next 3 months and the next year.

And for the long-term think about the next 5 years and the next 10 years.

Make your goals BHAGs - Big Hairy Audacious Goals (this comes from the book 'Built to Last: Successful Habits Of Visionary Companies).  And the more emotionally you connect with your goals, the more likely you are to achieve them. 

So go ahead - get those goals written down and get yourself an accountability buddy.

You'll be amazed at the difference it makes.​

About the author

Richard Baldwyn ATT CTA

Richard is Co-Founder of The Friendly Accountants and has more than 30 years' experience in tax, including 3 years spent inside HMRC before moving into private practice. He advises individuals and owner-managed businesses on a wide range of UK tax issues, including the tax challenges created by digital platforms and online business models.

Richard has specialised in UK crypto taxation since 2016 and was one of the first UK tax advisers to write publicly about the taxation of cryptoassets. His work includes advising individuals, investors, founders and owner-managed businesses on complex crypto transactions, HMRC disclosures and enquiries, DeFi, NFTs and the tax issues facing businesses operating with digital assets.

He also has first-hand experience of cryptoassets and Web3 projects, combining practical knowledge of how crypto is used with wider UK tax experience.

He particularly enjoys making complex tax transactions easier to understand and helping clients apply tax rules to transactions and technologies that do not always fit neatly within traditional tax categories. More about Richard and the TFA team

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