Aims and Objectives of a business
Most successful businesses have a clear idea on what they want to do and how they want to do it. In business terminology this is called the aims and objectives. Different businesses will have different aims and objectives. The aims of businesses are a list of things that a business wants to achieve. Examples of business aims can include making profit, expanding the business, maximising sales or maybe even just surviving as a business. But why do businesses need to have aims? Many businesses are start-up firms.
This means they just recently established themselves as a new business. That business will require aims as it needs to know what the business wants to achieve or the business will never run smoothly. They also need aims because they are most likely to be borrowing money from the bank or maybe from other friends and family, but if the bank cannot be assured that it will get its money back from the business, they will be reluctant to lend any money. Businesses also need objectives. These are the targets that a business sets it self to check it is going to achieve its aims.
Examples of objectives can include selling a certain number of a product within a limit or making a turn over of a certain amount within a set date. These are just two of many examples of SMART Business objectives. The term SMART means that the objectives should be specific, measurable, attainable, realistic, time constraints. Objectives should be specific; this means that there should be no misunderstanding of how to reach the aims. You either achieve the aims `or you don’t. It also needs to be measurable.
This means it should be to determine whether or not you have accomplished the objective. Objectives also need to be attainable and realistic. This means that the objectives should be reasonable and should be within reach. The last criterion for a SMART objective is it should have time constraints. This means there should be a deadline within the objective so that it can be measured. It is very important for businesses to have objectives as the objectives will tell the business owners if the business is progressing and reaching its aims.