The main purpose of the business. How to set business goals

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Defining the purpose of the business is where every business begins. Whether it is the organization of a small company by an individual entrepreneur or a multimillion-dollar project of a we althy person. Many believe that the purpose of a business is obvious in all cases, and it is to increase capital. This is not entirely true. Making a profit is certainly one of the reasons why people start businesses. But there are usually several goals.

Project implementation

What is the difference between a good businessman and a bad one? The fact that the latter is primarily concerned with issues related to making a profit. It is unlikely that he is interested in anything other than money. A good businessman has an idea for a project and is obsessed with making it a reality.

Forward thinking is very important. She is the driving force that can make the project develop. If a person is passionate about an idea, then he will do everything to implement it,will attract an audience, customers. Over time, the business will begin to grow, along with it, income will increase, which will cover all previously incurred expenses.

So the implementation of the project is the main goal of the business. The idea should correspond to the inclinations, abilities, knowledge, skills, interests, as well as the level of education of the entrepreneur. And also be relevant and, as they say, long-playing. There are temporary popular phenomena on which you can instantly make a fortune. A prime example is the recent boom in portable selfie sticks. Now their popularity has faded, and it will not be possible to make big money on their implementation. Therefore, it is important to take on such a business idea, the relevance of which will only grow with time. Or at least remain consistently interesting to customers.

Profit

Don't underestimate her at all. Getting we alth is also an important business goal. In addition, it causes several factors at once.

Firstly, without financial inflow, the company will not grow. The entrepreneur will not be able to purchase raw materials, materials, equipment and pay for the labor of hired workers.

Secondly, the presence of reserve capital determines the company's retention in the market. In a crisis, only the person who has made a reserve for the future in advance can cover expenses and continue business development.

Thirdly, at the expense of profit, the entrepreneur satisfies his individual and social needs. He receives material confirmation that his activities are of social benefit.

Fourthly, the amount of profit makes it clear how successful and promising the company is, and the decisions made earlier on business development are expedient and justified. This is especially important if the firm attracts the attention of traders, analysts, sponsors and investors.

Characterization of goals

A few words should also be said about her. So, the purpose of the business should be clearly articulated. Otherwise, it will not be possible to ultimately determine whether it was achieved or not.

Also, the goal must be limited in time. Indicate the date and the result that should be available at that time. which must be expressed in numbers. It is important to remember: what is immeasurable is not the goal.

But the most important thing is realism. No need to set unrealistic goals. On the contrary, it is better to even lower the bar a little. But then overfulfillment of the plan will bring joy.

Example

Talking about what the business goals of an enterprise should be, it is worth giving a simple illustrative example.

Let's say a person decides to organize their activities online. Organize a community in a social network, for example, on which he can later earn through affiliate programs and advertising.

In this case, it will be optimal to set a goal of attracting 5,000 targeted subscribers in 30 days. It's got it all: clear wording, timeline, specificity, and a high probability of attainability.

Other modelplanning

Above, it was described how in most cases the main goal of a business is set. But there is another, not generally accepted planning model. Which is nevertheless correct and very simple.

The main goal of every entrepreneur should be to create a special environment in which:

• workers will want to start working, and this desire will not fade;
• customers will feel tempted to buy goods/services from this firm;
• sponsors will remain interested in investments;
• partners will want to continue working with the firm;
• society will begin to want more of these companies.

From this angle, it would be useful for many entrepreneurs to look at the goals and objectives of the business. After all, the corporate environment can really either motivate or demotivate employees. And they should not be underestimated, because they are a resource, a driving force that develops a company. The same goes for the rest of the items. A good and right business is one that can benefit paying customers in a market with low competition. It was the understanding of these simple provisions that allowed such large firms as Apple, McDonalds, etc. to break ahead.

Tasks

They are directly related to the goal itself. The first thing to note is the permanent tasks. Their company decides during the entire period of its development. These tasks are indispensable. If they disappear, the business will disappear. It is the tasks that determinethe very essence of the project and set its foundation.

A simple example is a perfume company. Its main task is the production of eau de toilette, perfumes and colognes. If it is not carried out, then the perfume company will cease to exist. So a permanent challenge is the foundation of a business plan.

But there are also periodical ones. Business sets such tasks for a short time period. Take, for example, the same perfume company. Deciding to increase the customer base by 50,000 people in a month, management will set a periodic task (TO) for the firm.

PP classification

It is worth noting attention, talking about the main goals of the business. Since many of them are carried out precisely within the framework of periodic tasks.

They can be placed for more than 10 years. These are tasks from the field of long-term financial planning. It is due to them that it is possible to form competent business conduct and dynamic, stable development of the company.

There are also so-called five-year plans. Based on the name, you can understand what is the maximum period for completing these tasks. 5 years is a standard time period during which a business reaches a certain level.

Annual LOs are set for 365 days. They are aimed at increasing the volume of business. Annual LOs are relevant for new business. Companies that have been operating for a long time include these tasks in the plan for five or ten years.

In addition to the above, there are also quarterly tasks. They are usually planned during a period of crisis and economic restructuring. All because within one quarterthere may well be events that can radically change plans for the next 5 or 10 years. The fall of the ruble that happened a few years ago can be considered the most striking modern example.

Financial tasks

Now we will talk about what many perceive as the main goal of the business plan and the whole business as a whole. The financial objectives are to increase income and preserve existing capital. And also the centralization of management (if the company issues shares) and investment. The latter refers to firms that have decided to enter the global market.

By the way, the notorious capital preservation is extremely important. Since it is precisely this that ensures the stability of the business and the trust of creditors. Even during the financial crisis.