Successful small businesses begin with clarified goals and objectives. Determining why you want to go into business and what you hope to accomplish are important topics to consider. Setting forth a strategy to meet your targets will make the road to a solid business smooth. Establish a plan with your long-term business vision in mind (See Reference 1).
There are four main types of business goals: service goals, social goals, profit goals and growth goals. Service goals mean that the business will service others. Social goals mean that the business will support a charity or cause. Profit goals mean that the business will function in order to earn money. Growth goals mean that the business owner wants their company to grow. Business goals can include one or more of these types of goals (See Reference 1).
New businesses must set forth concrete objectives. Objectives should be measurable, specific, action-oriented, timely and realistic. The objective should have a numerical or monetary value. It should also not be attained with minimal effort. It’s also important to set a deadline to achieving each objective (see Reference 1).
A great way to clarify all of your business goals and objectives is to write a business plan. The business plan will include your business goals and objectives, how you plan on achieving these goals, your start-up cost and external factors. An external factor, for example, could be your type of competition. (see Reference 1).
Profit maximization means that the business owner will try to make the most amount of profit possible. The owners and shareholders of a company generally have this as a business objective. Profit satisficing means that the business will make just enough money to be profitable and keep the business owners comfortable. This is most likely the aim of small business owners who don’t want to work very long hours. Sales growth means that the business will attempt to make as many sales as it can (See Reference 1).
Business objectives may conflict with each other. For example, growth can conflict with profit if cutting prices short-term to increase sales will lower short-term profit. Short-term business objectives can also conflict with long-term objectives if, for example, the business invests a lot of money in new equipment while accepting small amounts of cash short-term. Small businesses may also change their objectives as time goes on. Changing technology and competition can affect business goals and objectives (see Reference 2).