Business Objectives

Question 1

What are business objectives?

Answer 1

Business objectives set out the aims and purposes of a business. They are created at the formation of the business and help to shape decision making, spending and planning. They provide direction and help to get financial backing.

Question 2

What must business objectives be?

Answer 2

S pecific
M easurable 
A chievable
R ealistic
T ime-based

Question 3

What are examples of long term objectives?

Answer 3

• capital stability
• increased net worth
• growth of the business (perhaps national or international reach, this depends on the type of business and its activities)
• consolidation (merging several companies into one larger one, possibly some takeovers)
• reduced borrowing (reduced level of gearing)
• sell the business and retire comfortably

Question 4

What are examples of short term objectives?

Answer 4

• survival (particularly in the first few years)
• breakeven (and then profit)
• improve working conditions
• improved adaptability and flexibility

Question 5

What are some examples of personal long term goals?

Answer 5

• improved standard of living
• take on the running of the business (be your own boss, set own hours and manage own pay)
• handing down the business to future generations
• gaining prestige in the wider community/industry/family

Question 6

What are some examples of personal short term goals?

Answer 6

• develop management skills (delegation and the handing over of responsibility will be important as the company grows)
• develop technical skills
• develop social skills
• develop public speaking skills