Why Setting Annual 12-months Goals is Ineffective - A How-To Guide on Setting Impactful 10x Targets This Year Instead

Summary: Setting ‘new years resolutions’ or creating annual targets for your business is not the best strategy to achieve your goals. This approach limits your potential by setting arbitrary deadlines: real-world business dynamics do not neatly map onto the yearly cut-off our calendars have. Instead of focusing on what’s achievable in a year, 10x thinking encourages businesses to set ambitious growth goals/milestones —such as multiplying revenue tenfold—and work backward to create a strategic plan. This approach requires thinking from first principles (what new systems can help us achieve this goal in the fastest way possible?), prioritizes exponential value creation, and inspires teams to have a bias for action. I believe 10x target setting can take companies from product-market fit to unicorn status within a few years, much faster than the traditional annual goal-setting approach. By aligning resources, strategies, and team efforts toward bold milestones, 10x targets redefine business operations, creating systems of transformative growth. This mindset shift is powerful beyond the business realm; used wisely it can transform every aspect of your life.

Introduction

These days you’re probably planning what you will achieve in 2025. Whether you’ve recently started a company or you’ve been managing one for a while, it is likely that you set goals on a yearly basis.

For example, you might posit: ‘this year we will double our profit margins and hire a marketing team’.

This is the standard approach to goal-setting in business because time is measured with systems of months and year, and the rest of the world aligns with that framework. This is what pushes many people to set ‘new years resolutions’ and to wait for the 1st of January to start doing an activity which, deep down, they know is long overdue.

I like to think about business growth differently (and personal growth, for that matter).

Recognizing the arbitrariness of the 365-day horizon, we started doing things differently with the companies we take on board. The mindset shift helped us bring every company from product market fit to unicorn stage — and we truly believe it’s the most impactful mindset shift a business manager can make.

It’s very simple: instead of setting goals for the year, set goals based on what you seek to achieve and then work backwards to create a realistic but ambitious plan.

For instance, instead of saying: in 2025, we will double net profit, ask: what’s the shortest possible time in which we can double our profits? What’s the shortest possible time in which we can 10x our profits? The time, depending on how specific your plan is, will be a seemingly arbitrary number of days, weeks, months or years. But this number is far from arbitrary.

Suppose you figure out you can double your profits in 127 days — then every day is a countdown to that moment and you cannot afford to slack. This pressure is harder vs. setting an annual target, as in the latter case, there’s an ongoing feeling that “you still have time”.

This new year, chuck your yearly resolutions and goals, and instead reframe them in terms of 10x targets. This article is a how-to-guide on how to adopt this powerful new framework, which I hope will allow you to succeed with the speed and efficiency that my companies have.

The Problem With Annual Targets

Annual goal-setting is a comforting tradition. It gives the illusion of order and predictability, fitting neatly into the rhythm of the calendar year.

But for businesses aiming to grow rapidly, it’s a trap.

The first issue lies in the 12-month timeline itself. While it’s convenient for time-keeping, it’s often irrelevant to the unpredictable dynamics of business growth. Growth rarely adheres to a calendar. Opportunities emerge unexpectedly, markets shift, and competitors move quickly.

Why then should your strategy be anchored to an arbitrary 365-day cycle?

The focus on yearly targets also encourages linear thinking, which can hinder growth. When you set goals confined to what’s achievable in a year, you limit yourself to incremental progress. You aim for modest improvements rather than daring leaps, and the result is often a slow climb instead of an exponential leap.

Moreover, 12-month targets create a short-term optimization trap.

Annual targets create a mindset where immediate results are prioritized over long-term value creation. You chase quick wins to meet your yearly benchmarks, even if it means delaying or neglecting the foundational work needed for sustained growth.

This approach might feel safe, but it’s also why many businesses plateau. Safe isn’t what creates unicorns. Safe doesn’t lead to extraordinary outcomes.

The 10x target system is different.

It starts by envisioning what’s truly possible if you remove the constraints of time and think instead about milestones. What would it take to multiply your revenue tenfold? How quickly could you achieve it if you aligned all your resources and strategies toward that singular goal?

It’s basically a targets-first approach - where the timeline is adjusted to the target rather than vice versa.

This shift forces you to focus on outcomes and methodology rather than arbitrary timelines. Instead of asking what’s achievable in a year, you ask what’s necessary to reach a transformative milestone and how fast you can realistically get there. This change in perspective drives urgency and clarity. Every day becomes part of a countdown to a specific, ambitious result.

It also encourages exponential thinking. When your aim is 10x growth, you can’t rely on the same strategies that produced your current success. Incremental improvements won’t cut it. You need to rethink your systems, innovate boldly, and embrace ideas that seem almost out of reach. 10x thinking encourages you to rethink the very methods you use and restructure the way in which you achieve your goals.

Think about a climber: instead of thinking about aerobic efforts in climbing steps (linear/annual thinking), 10x thinkers reconsider the strategy they use to climb (e.g., if you use ropes and pulleys you will reach exponentially higher surfaces).

Most importantly, this mindset aligns with the dynamics of high-growth businesses.

Startups, in particular, thrive on momentum. They aren’t constrained by the slow pace of traditional organizations. With focus and determination, many can achieve 10x growth in just a few years. This is the trajectory that separates those who merely survive from those who dominate their markets.

By reframing your approach to goals, you’re not just working harder. You’re working smarter, aligning your efforts with a vision that demands excellence and rewards ambition.

Annual versus 10x: Hypothetical Long-term Scenario

An example can help illustrate the power of 10x (rather than annual) target setting in the long run.

Imagine you’re managing a company with $4M in annual recurring revenue (ARR) at the start of the year. Following a traditional approach, you set an annual goal: increase ARR by 50%, reaching $6M by year-end. It’s ambitious yet realistic, requiring a steady focus on marketing, sales, and operational improvements. By the end of the year, you hit your target, celebrate your success, and then repeat the process for the next year, aiming for another 50% increase.

After two years, your ARR reaches approximately $9M. After three years, your ARR will be about $14M.

While this is a respectable achievement, the company’s growth trajectory remains incremental. You’ve optimized within the constraints of the annual goal-setting framework, but you haven’t unlocked the full potential of exponential growth.

Now, let’s reimagine the same scenario using the 10x target framework. Instead of aiming for 50% growth annually, you set a 10x milestone: grow from $4M ARR to $40M ARR. You figure out the shortest time in which you can achieve this by creating a thorough and ambitious plan. You find you can do it within 20 months (a bit less than 2 years). Then you aim for 10x again — which you figure out you can achieve in 3 more years. After five years, your ARR hits $400M, substantially different from working in the constraints of annual growth projections.

The 10x goal forces you to think differently. Incremental changes won’t suffice. You need to identify and act on transformational opportunities—whether that means launching new products, entering new markets, or overhauling your go-to-market strategy.

Every decision is guided by this audacious target. You’re not asking, “What can we achieve in a year?” Instead, you’re asking, “What steps will get us to $40M ARR as quickly as possible?” This mindset drives urgency, clarity, and focus.

Each day becomes a countdown to a tangible, transformative milestone.

The specificity of the time-constraint (in this example, 20 months) works as ongoing pressure to meet your goals. Annual thinking, instead, creates the sense that there’s always more time to reach your target.

Think here about Peter Thiel’s question. If you have a 10-year plan of how to get somewhere, you should ask: Why can't you do this in 6 months?

This isn’t just theoretical. We’ve implemented this approach with companies in our portfolio.

One company currently stands $4M ARR, and we are working on a plan for reaching $50M ARR in just two years. Another company is currently at $40M ARR, and we are looking to scale to $400M ARR within three years. These businesses should not settle for incremental progress. They embrace 10x thinking, aligning their teams, resources, and strategies toward exponential milestones.

From experience, I can unequivocally assert: 10x targets are the most effective way to bring your company from PMF to unicorn.

Two cycles of 10x growth within five years (2 years for the first 10x increase and 3 years for the second) represent a 100x increase. For a company starting at $1M ARR (basic product-market fit), this is the path to becoming a unicorn. Incremental annual targets simply can’t deliver that level of transformation. But with the 10x framework, extraordinary outcomes become not just possible, but inevitable.

The difference between setting annual targets and setting 10x targets is analogous to the difference between goal seeking and time seeking, respectively.

A goal seeking approach consists of inputting the time frame (e.g., one year) and setting the goals based on that. This involves choosing an arbitrary time frame which you deem relevant and postulating what might be achievable within it. Your positioning in the time frame drives decision-making and adjustments.

On the other hand, a time seeking approach starts by inputting the goals and then seeking the shortest amount of time in which it can be done. The focus is on adapting your strategy and methods to reach maximum efficiency and reach your goals as fast as possible. Your distance from the goal drives decision-making and adjustments.

So, in other words, the key point is: time seeking is much more effective at driving business growth than goal seeking.

How to set 10x Targets

Here are a few actionable steps to help you start setting 10x targets today.

1. Start with the End in Mind

Remember this is a target-first approach. So, start with the end in mind.

Define a specific, ambitious milestone that aligns with your vision. For example, if you’re currently at $10M ARR, set your sights on $100M ARR. Don’t limit yourself to incremental improvements—think about what’s possible when you stretch your imagination and ambition.

2. Work Backward

Once your milestone is clear, work backward.

Identify the key levers and initiatives required to achieve this goal. Ask yourself: What growth rate is necessary? What resources will be required? What will my organizational structure look like? What strategies will drive this transformation? This process ensures that every action you take is aligned with the overarching milestone.

3. Set a Realistic Timeline:

While annual goals default to 12 months, 10x goals often span 2-3 years. This timeframe reflects the scale of the transformation you’re aiming for while maintaining a sense of urgency. Remember, the timeline is critical—breaking down your 10x goal into shorter frames creates a well-thought-through plan that helps you remain focused: every day becomes a battle towards your 10x goal.

4. Align Your Team

Communicate the 10x goal clearly to your team and ensure everyone understands their role in achieving it. A shared vision creates focus and momentum, enabling your organization to operate as a cohesive unit. Every decision, initiative, and strategy should serve the 10x target.

5. Monitor Progress

MANTRA: What doesn’t get measured, doesn't get managed! Regularly review your performance against the 10x milestone and adjust tactics as needed. This doesn’t mean changing the goal; it means staying flexible in your approach while remaining steadfast in your commitment to the outcome. By tracking progress, you maintain momentum and ensure accountability.

Advantages of 10x Targets

10x targets is the best framework to bring companies from PMF to unicorn. But 10x is not just about growth—it’s about reshaping the way businesses operate.

The first advantage lies in the way it radically transforms thinking itself.

Aiming for 10x growth forces you to adopt an exponential mindset. Instead of taking linear, incremental steps, you focus on transformative leaps. This shift doesn’t just drive ambition—it inspires creative problem-solving and ensures your energy is directed toward high-impact activities. Every problem becomes a challenge requiring innovative thinking — rewiring systems from the bottom-up to reach the ambitious 10x targets in the shortest time possible.

It also encourages a strategic approach to goal-setting.

When you’re aiming to 10x your business, you naturally begin evaluating what’s truly holding you back.

• What bottlenecks need to be addressed?

• What systems need to be overhauled?

• What processes can be made ten times more efficient?

This process uncovers meaningful, actionable insights that wouldn’t surface with incremental targets.

10x goals have a unique power to align teams.

By setting audacious yet specific milestones, you create a clear north star for everyone to rally around. Teams know exactly what success looks like, and this shared vision fosters cohesion and purpose. It’s not just about individual contributions—it’s about collective effort toward an extraordinary outcome.

It also ensures that those who don’t share the commitment to 10x goals will get off the ship.

Another key advantage is the bias toward action that 10x goals create.

When the target is this ambitious, there’s no room for complacency. Every decision, every initiative, and every day takes on new urgency. This momentum drives faster execution, bigger ideas, and more decisive leadership.

While annual goals often push businesses to optimize for short-term wins, 10x goals require investments in systems, teams, and products that generate sustained impact. This focus on the bigger picture ensures that the growth achieved is not only rapid but also enduring.

Beyond the business realm, one of the key benefits of 10x thinking is the way that it transforms your life. Suddenly everything that you want to achieve becomes possible through the lens of 10x. Whether that is a fitness target, learning about a specific topic, acquiring a skill, or personal growth, you can think about how to improve tenfold, rather than gradually.

Conclusion

The 10x framework is a reminder that the systems and strategies we inherit often constrain what’s possible. By breaking free from the arbitrary timelines of annual goal-setting, businesses and leaders can tap into a new realm of creativity and ambition.

This isn’t just a strategy; it’s a mindset—a way of refusing to settle for incremental progress when exponential growth is within reach. It challenges you to look beyond the familiar metrics and frameworks and instead focus on what’s truly possible when all your resources, talent, and energy are aligned toward a single audacious target.

But the 10x approach doesn’t just transform businesses; it transforms people.

It creates a culture of boldness, innovation, and resilience. When teams rally around a goal that seems almost out of reach, they discover new levels of creativity and collaboration, pushing boundaries they didn’t know existed.

In the end, 10x thinking is about more than growth. It’s about recognizing that the most significant breakthroughs don’t come from following the crowd but from daring to think differently, from being contrarian. So, as you look ahead, ask yourself: What’s the boldest, most ambitious goal you can envision? And what will it take to get there? With the 10x framework, the answer might just surprise you.