The success or failure of a business, whether large or small, depends upon two things – motivation and goals. Both the owners and employees within a company must be motivated for the business to be successful but without goals there is no direction for the motivation. Therefore, motivation and goal setting work hand in hand. Goals guide the company and employees toward specified objectives. Motivation is the psychological incentive required to reach the goals. Businesses lacking goals or the motivation to achieve the goals are businesses without direction or purpose.

Setting business goals is vital to the success of the business as it turns dreams and aspirations into a tangible target rather than just an idea or notion. Goals may be used to measure the progress or performance of the company and employees. They are the guidelines businesses use to prevent floundering about without direction. An ideal business goal includes specifics including guidelines, details and potential resources for achieving the goal. A well-defined goal is an excellent directional compass for the company as well as the employees. Setting goals allows the company and employees to work together towards an overall objective which will fairly well guarantee the business’s success. 

Motivation in business is important as it provides the catalyst to willingly get the job done efficiently and effectively. Companies which can motivate not only the owners and management members but also the employees to reach the set goals are successful businesses. Motivated employees result in higher productivity, are more satisfied, and typically stay with a company rather than seeking employment elsewhere. Companies where the employees display low motivation are typically struggling to maintain their productivity and efficiency. Lack of definable goals may be the reason for the low motivation thus introducing or redefining the company’s goals may be the stimulus necessary to increase the motivation thus ensuring the business’s success.