Business Objectives
When writing your business objectives you should be considering what are the key goals/objectives for the business over the next (usually) 3 years. This should be split up over several areas; business objectives, financial objectives, and personal objectives. Each of these should form part of your objective selection strategy and should involve the S.M.A.R.T. principle in that each of your objectives should be:Specific, Measurable, Achievable, Realistic and Time Framed.
Specific:
This means have we described the objective in as much detail as possible, describing exactly what is to be achieved. Measurable:
How will we know when we have achieved this objective? What are we measuring this against? (e.g. a % growth over last year or a dollar value to be achieved?). Achievable:
Is this objective reachable, doable, practical and feasible. Do we have sufficient resources to achieve this objective? Realistic:
Is this a sensible and reasonable objective? Or is this simply blue sky and way beyond our reach? If so, go over the S.M.A.R.T. process again, re-defining the objective to be achieved to make it realistic. Realistic can also be interpreted as relevant, meaning, is the objective in tune with our business focus? if it is not then why are we doing this? Time Framed:
What is our time frame to achieve this objective by? Date stamp it! Goals without a date stamp are just dreams!
Defining Business Goals and Objectives
a) Business:
For example; number of staff to be employed over each year? Number of active customers over each period? Highlight any major capital purchases that will enhance the business operation.b) Financial:
How much revenue can be expected in years 1 - 3, and how much profit (gross and net) can be expected? What are the expected financial ratios over the next 3 years? How much cash in the bank is expected at the end of each year? See also Business Growth Plan c) Personal:
These objectives should highlight what you want out of the business. For example; you may want to be able to purchase a new car in 3 years, or plan a great holiday after year 2, or even just to be financially secure after 5 years in the business! This area is the satisfaction you get from being successful!
Back to What's in a Business Plan from Business Objectives
See also Business Growth Plan
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