1.3 Flashcards
What are aims in the context of entrepreneurship?
Aims are the broad targets that an entrepreneur has at the back of their mind, such as ‘to get rich’.
What distinguishes objectives from aims?
Objectives are specific, whereas aims are general.
What does the acronym SMART stand for in relation to objectives?
SMART objectives should be:
* Specific
* Measurable
* Achievable
* Realistic
* Time-bound
Why are clear objectives valuable in a business?
They give a clear sense of purpose that all employees can buy into, which is motivating.
What type of objectives do people starting a new enterprise usually have?
- A financial objective
- A business objective
- A social objective
What is a common financial objective for entrepreneurs at startup?
Survival, meaning bringing in enough cash to pay the bills.
What is one financial objective related to profit for entrepreneurs?
To make enough profit to pay family bills or to try to make the family rich.
What issue can arise when entrepreneurs focus on quick profits?
They may cut corners, leading to questionable business practices.
What is a financial objective that involves customer loyalty?
Building sales and customer loyalty before turning those sales into profit.
Fill in the blank: Many experts say that the most successful businesses have an aim other than _______.
money
What can happen to businesses that focus solely on sales without profit?
They may attract acquisition offers despite not being profitable.
What is the long-term goal some entrepreneurs have for their businesses?
To hand their business on to their children.
What are aims in the context of entrepreneurship?
Aims are the broad targets that an entrepreneur has at the back of their mind, such as ‘to get rich’.
What distinguishes objectives from aims?
Objectives are specific, whereas aims are general.
What does the acronym SMART stand for in relation to objectives?
SMART objectives should be:
* Specific
* Measurable
* Achievable
* Realistic
* Time-bound
Why are clear objectives valuable in a business?
They give a clear sense of purpose that all employees can buy into, which is motivating.
What type of objectives do people starting a new enterprise usually have?
- A financial objective
- A business objective
- A social objective
What is a common financial objective for entrepreneurs at startup?
Survival, meaning bringing in enough cash to pay the bills.
What is one financial objective related to profit for entrepreneurs?
To make enough profit to pay family bills or to try to make the family rich.
What issue can arise when entrepreneurs focus on quick profits?
They may cut corners, leading to questionable business practices.
What is a financial objective that involves customer loyalty?
Building sales and customer loyalty before turning those sales into profit.
What can happen to businesses that focus solely on sales without profit?
They may attract acquisition offers despite not being profitable.
