Determining the goal of a business is where every business begins. Be it the organization of a small company as an individual entrepreneur or the multi-million dollar project of a wealthy person. Many people believe that the goal of the business in all cases is obvious, and it is to increase capital. This is not entirely true. Making a profit is, of course, one of the reasons people start their 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 puzzled by issues related to making a profit. He is unlikely to be interested in anything besides money. A good businessman has an idea for a project, and he is obsessed with translating it into reality.
A promising idea is very important. It is the driving force that can make a project develop. If a person is passionate about the idea, he will do everything to implement it, attract an audience, customers. Over time, the business will begin to grow, along with it will increase revenue, 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 inclinations, abilities, knowledge, skills, interests, as well as the level of education of the entrepreneur. And also to be relevant and, as they say, long-playing. There are temporary popular phenomena on which you can instantly make a fortune. A recent example is the recent boom in portable monopods for selfies. Now their popularity has faded, and it will not work 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
It is not necessary to underestimate it completely. Getting wealth is also an important business goal. In addition, it determines several factors at once.
Firstly, without a financial influx, the company will not grow. The entrepreneur will not be able to purchase raw materials, materials, equipment and pay for wage workers.
Secondly, the presence of reserve capital determines the retention of the company in the market. During the crisis, only those people who have made a reserve for the future in advance can cover expenses and continue the development of the business.
Thirdly, at the expense of profit, the entrepreneur satisfies his individual and social needs. He receives material confirmation that his activities bring public benefit.
Fourth, the profit margin makes it clear how successful and promising the company is, and decisions made earlier on business development are appropriate and justified. This is especially important if the company attracts the attention of traders, analysts, sponsors and investors.
Goal Description
A few words should be said about her, too. So, the goal of the business should be clearly formulated. Otherwise, it will not be possible to ultimately determine whether it has been achieved or not.
Also, the goal must be limited in time. Indicate the date and result that should be available at that time. Which must be expressed in numbers. It is important to remember: that which is immeasurable is not a goal.
But the most important is realism. No need to set unrealistic goals. On the contrary, it’s better to even lower the bar a little. But then overfulfillment of the plan will bring joy.
Example
Talking about what should be the business goals of the enterprise, it is worth giving a simple illustrative example.
Suppose a person decided to organize his activities online. Organize a community in a social network, for example, on which he will be able to earn money through affiliate programs and advertising.
In this case, it would be optimal to set a goal of attracting 5,000 targeted subscribers in 30 days. There is everything: a clear wording, time frame, specifics and a high probability of attainability.
Another planning model
It was described above 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 each entrepreneur should be the formation of a special environment in which:
- workers will want to start working, and this desire will not fade from them;
- customers will feel a desire to buy goods / services from this company;
- sponsors will remain interested in investing;
- partners will want to continue cooperation with the company;
- society will begin to want more such companies.
From this side, 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, since they are a resource, a driving force that develops a company. The same goes for the rest of the points. A good and right business is one that is able to benefit solvent customers in a low-competitive market. It was the clarification of these simple provisions that made it possible for leading companies such as Apple, McDonalds, etc. to break ahead.
Tasks
They are directly related to the goal itself. The first thing to note is the constant challenge. Their company decides throughout its development period. You cannot do without these tasks. They disappear - and business disappears. It is the tasks that determine the very essence of the project and set the basis for it.
A simple example is a perfume company. Its main task is the production of toilet water, perfumes and colognes. If it is not implemented, then the perfume company will cease to exist. So an ongoing task is the foundation of a business plan.
But there are also periodic ones. The business puts such tasks for a short time period. Take, for example, the same perfume company. Having decided to increase its client base by 50,000 people per month, the management will set a periodic task for the company.
PP classification
It is worth noting attention, talking about the main goals of the business. Since many of them are carried out precisely in the framework of periodic tasks.
They can be set for a period of more than 10 years. These are tasks from the field of long-term financial planning. It is due to them that they succeed in forming competent business management and dynamic, stable development of the company.
There are also the so-called five-year plans. Based on the name, you can understand what is the maximum term for completing these tasks. 5 years is a standard time period during which a business reaches a certain level.
Annual PPs are set for 365 days. They are aimed at increasing the volume of business. Annual PPs are relevant for a new business. Companies that have been operating for a long time include these tasks in a five or ten year plan.
In addition to the above, there are still quarterly tasks. They are usually planned during a crisis and economic restructuring. This is because within one quarter, events that could radically change plans for the next 5 or 10 years may well occur. The fall of the ruble that happened several years ago can be considered the most striking example of modern ones.
Financial challenges
Now we will talk about what many perceive as the main goal of the business plan and the whole business as a whole. Financial tasks are increasing income and maintaining existing capital. And also centralization of management (if the company issues shares) and investment. The latter applies to firms that have decided to enter the world market.
By the way, the notorious preservation of capital is extremely important. Since it is precisely this that ensures business stability and creditor confidence. Even at a time when the financial crisis reigns.