What people who never lose their way in business decide first.

Hello, this is Iguchi.

As a sole proprietor, I spend my days forming and testing hypotheses while exploring web marketing and sales promotion methods that can be practiced even with a small budget.

In this note, I focus on marketing terms that you might have heard of, but are often used vaguely. Based on my own research and real-world experience, I have summarized them in the simplest language possible.

I hope that even those who are not comfortable with technical jargon will find this helpful and think, "I see, that's what that means."

In the previous article, I explained "KPI (Key Performance Indicator)."

The previous article is here↓

Just as I felt relieved thinking, "I see, it's just a daily action goal!", I encountered another similar term.
Its name is

"KGI".It happened when I was reading a business book a long time ago.


"Before setting KPIs, let's confirm that an appropriate KGI is set." A sentence like that appeared.
(Huh...? Is there something even before KPI?)

(The P just turned into a G! What's the difference?)
Honestly, there are so many similar-sounding business terms that it's confusing, isn't it?

But apparently,

this "KGI" is the most important thing that serves as the beginning of everything.Let's explore the true nature of this term together so that we sole proprietors and freelancers don't work ourselves to exhaustion.

I looked it up: The true nature of "KGI"

When I looked it up...

I see, the point is the word "Goal".

While the "KPI" we learned about last time is for checking the process, "KGI" seems to refer to the "final destination" itself.

In other words, the order is as follows.

1. First, decide on the "KGI (final goal)"

2. Then, decide on the "KPI (specific actions)" to get there

I was only thinking about finishing the tasks right in front of me (KPI), but if I don't have a clear idea of "where I am heading (KGI)", I wouldn't even know if those tasks were correct... that's what it meant.

It's super easy to understand if you think of it as a car navigation system!

I was able to understand this intuitively by comparing it to driving a car or a "car navigation system."

Suppose you go for a drive in your car on a holiday.

What is the first thing you do with the car navigation system?
That's right, you "set the destination."

• KGI = Setting the destination on the car navigation system (e.g., arriving at Tokyo Disneyland)

Only after you set the destination will the car navigation system calculate the route for you.
And when you start driving, it gives you directions like "turn right at the next intersection" or "arrive in 30km."

This is the KPI.

• KPI = Route guidance, progress points (e.g., 10 minutes to Ebina SA, driving at 80km/h)

What would happen if you drove the car without entering the KGI (destination)?
You would just be using gas and driving around, and you wouldn't arrive anywhere.

Conversely, if the destination is set, even if you get lost on the way (even if things don't go according to plan), the car navigation system will recalculate and guide you to the goal.

Business is the same; if you don't input the "KGI (destination)" first, there is a possibility that your daily efforts will end up as "just a drive." Isn't that a little scary?

How can sole proprietors and freelancers utilize this?

So, what kind of KGI should we, as sole proprietors and freelancers, set?

For example, let's imagine a budding "freelance web designer."

They might have a vague desire like "I just want to be famous!" or "I want to make money!"

But that is weak as a KGI.
It's the same as entering "Somewhere far away!" into a car navigation system and expecting it to move.

A KGI needs to be clearly defined by "numbers" and "deadlines."

• Bad example: Become a popular designer someday (too vague)

• Good KGI example: Achieve monthly sales of 500,000 yen by March of next year

Once a destination (KGI) like "500,000 yen in monthly sales" is set, you can work backward to see what needs to be done (KPIs).

• "To earn 500,000 yen, at my current unit price, I need 10 projects a month."

• "So, I'll send out two sales emails every day (this is the KPI)."

If your KGI was "I want to work at a relaxed pace, so 100,000 yen in monthly sales is fine," the KPIs you need to work on would change, right?

If the KGI (goal) is different, the route to get there (KPI) also changes.

That is why it is important to first ask yourself, "Where is the goal for me?".

Summary: KGI is the "North Star" to look up to when you are lost.

After looking into it, my stiff image of the word "KGI" changed completely.

It is not just a sales target, but rather the answer to the question, "What am I working so hard for in the end?".

When working as a sole proprietor or freelancer, you often feel anxious and lose your way, thinking,

"Is my current approach okay?"
"I'm not getting any results at all..."

At times like that, if you have a firmly established KGI, it should

remind you of the direction you should be heading, like a North Star, saying, "It's okay, my destination (KGI) is over there. I'm just taking a slight detour right now."Has a clear "destination" been entered into your current activities?

If you are in a state of "just running for now," it might be a good idea to stop the car for a moment and take the time to set your KGI in the navigation system.
Next time, I would like to delve deeper into how to create a more concrete plan that connects this KGI and KPI!

Thank you for reading until the end.

I would be happy if this article led to a small realization of "I see, that's what it meant!" or provided a hint for your own ideas.

Following me would be a great encouragement.
I will follow back as well ^^