A business plan is a formal written document furnishing every information of your business and helps you set goals and objectives of your business. It is a guide for business owners to develop and grow their companies. Without setting goals and objectives clearly, organizations may face troubles in coordinating activities and forecasting future events. This article helps you set goals and objectives for your business.
Create a Mission and Vision
Businesses without mission and vision are vulnerable and may succumb to any eventuality. A mission aims to describe the organizational purpose, that is, why your business is in existence. It also provides a strong foundation to your business plans and marketing efforts.
1) Mission:Mission focuses on current operations of your business and the industry in which it operates.
- What is your business all about?
- Why are you in business?
- What is the nature of your products and services?
- Who are your customers?
- What level of service do you provide?
- How do you differ from your competitors?
- How will you use capital, technology, processes, products and services to reach your business goals.
The mission statement focuses on a company’s present state of business, whereas the vision statement focuses on a company’s future.
Vision of the business gives you a clear picture of your future for you and your business.
2) Vision: Vision statement indicates where your business wants to go in next years, that is, how it would perform in the time ahead. Thus vision address issues like:
- Where do you want to see your business in future?
- What would you hope people say about your business in future?
- What do you not want people to speak about your future?
- Focuses on non-financial topics.
Once your mission and vision are clear, you need to set your business’s goals and objectives. Keeping your mission and vision in mind, start generating ideas to execute them. Think holistically and list out a collection of ideas. Here are some examples.
Create a list of ideas
Here is a list of ideas that enables you to achieve your business mission and vision.
1) To be world’s leading company.
2) Low cost provider relative to key competitors.
3) To provide best customer service.
4) Higher level of customer satisfaction.
5) Make your business run for 20 years (not applied to all businesses).
6) Increase your company size with 500 employees.
7) Geographic expansion of your company: locally, nationally, internationally.
8) Reduce inventory costs.
9) Make your business popular.
10) Introducing existing products in to a new market.
Top three ideas that will become your goals
The top three ideas in the preceding list can become your goals. Business goals set the tone and tells what is important to business so that work is directed to achieve it.
1) Make your business run for 20 years.
2) Increase your company size to around 500 employees.
3) To be a leading company in the world.
Break the Goals into Milestones
Breaking your business goals into objectives (or milestones) would guide you with a clear picture for success. Without objectives, it is hard to know whether you are on the right path. Set your objective, therefore, to ensure that if you complete each one you will achieve your goal. However, goals are typically described in words, whereas milestones often come with numbers and specific dates.
Following are some goals that can be broken in to objectives to achieve them.
1) Make your business run for 20 years: First plan your vision and document it precisely. It should include all the information of your business such as how much profit to be expected from the business, what are the manufacturing and delivering costs of the products/services, etc. Then, control your finances by optimizing cash flows by implementing procedures for handling delinquent accounts.
Business sales revenues to be monitored, evaluate your market, manage and motivate your employees, comply with all legislation governing rules and regulations, conduct ongoing risk appraisals and identify areas of vulnerability, care for your customers, avoid self-satisfaction and know your limitations.
2) Increasing your company size to around 500 employees: To begin with, recruit a few members in your company according to your needs. When these people are not sufficient for completing tasks, you opt for automation systems in your company. For these systems to operate, you need more employees. Therefore, recruit a few more people. When more number of employees are recruited, you cannot manage them. Divide them into groups to work in different departments and assign one employee to each group to manage. You can, thus, increase the size of company. However, company size also matter in growth of a business.
3) To be world’s leading company: For this, you should have a very clear vision for company and you should follow strategies in the long run, and strive to maintain an excellent customer relationship. You should provide high technology products and reliable service to the consumers.
Note: Goals and objectives are not same. Business goals represent the list of achievements that it wants to reach. Setting goals helps you to take a direction to reach them. Whereas objectives are the exact steps your company must take to reach the goals. They are tangible and quantifiable. Objectives are necessary for businesses to measure their success and progress towards their goals. Without objectives, goals appear out of reach.
Objectives are required in each key area
Objectives tell you exactly how to reach the business goals. Setting objectives involves continuous process of research and decision-making. They are essential in every key area like finances, strategic market objectives, internal operational objectives, innovative and learning objectives.
Goals and Objectives should be S.M.A.R.T
Business plan should be very clear about the products/services they will be set up. Setting goals and objectives is very important because it directs the company to it’s specific aims. of a company over a period of time and motivate staff to meet the objectives set. SMART is a form used to set goals and objectives to the business.
- S for specific: Goals and objectives should be specific and know what exactly you want to achieve from the business, so that you can reach it in a better way.
- M for measurable: You need to measure and track how much you have progressed at the end of your business outcome.
- A for attainable: Your goals and objectives must be attainable. You need to be practical and realistic.
- R for relevant: Able to obtain the level of change reflected in the objective.
- T for timely: Goals and objectives should be time-bound. You should have a deadline for your business to reach desired goal.
Having understood what mission, vision, goals and objectives are and how to execute them confidently is the key to success. They will help you grow and have a successful business. All the best! (more…)