The main purpose of business. How to set business goals

The definition of the purpose of business is what starts each business. Whether it is the organization of a small firm by an individual entrepreneur or a multimillion-dollar project of a wealthy person. Many believe that the purpose of business in all cases is obvious, and it is in the multiplication of capital. This is not entirely true. Obtaining a profit is certainly one of the reasons why people start their business. But there are usually several goals.

Project implementation

What is the difference between a good businessman and a bad businessman? The fact that the latter is primarily puzzled by 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 the project, and he is obsessed with its embodiment in reality.

The perspective idea is very important. It is the driving force that can make the project develop. If a person is passionate about the idea, he will do everything to realize it, attract the audience, clients. Over time, business will begin to grow, along with it will increase and income, which will cover all previously incurred costs.

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 still be relevant and, as they say, long-playing. There are temporary popular phenomena on which you can instantly make a fortune. A vivid example is the recent boom in portable monopods for selfies. Now their popularity has faded, and it will not be possible to make big money on their sale. Therefore, it is important to take on such a business idea, the relevance of which will only grow with time. Or at least remain stably interesting to customers.

Profit

It is not necessary to underestimate it completely. Getting rich is also an important goal of business. In addition, it causes several factors at once.

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

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

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

Fourth, the size of the profit makes it clear how successful and promising the company is, and the earlier decisions on business development are reasonable and justified. This is especially important in cases where the firm attracts the attention of traders, analysts, sponsors and investors.

Characteristics of objectives

About it, too, is to say a few words. So, the purpose of business should be clearly formulated. Otherwise, it will not be possible to determine in the end whether it was achieved or not.

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

But the most important is realism. Do not set unrealistic goals. On the contrary, it's better to even lower the bar a little. But then the overfulfilment of the plan will bring joy.

Example

Talking about what should be the business goals of the enterprise, it is worthwhile to give a simple illustrative example.

Suppose a person decided to organize their activities online. Organize a community in a social network, for example, where he can later earn through affiliate programs and advertising.

In this case, it will be optimal to set a goal, which involves attracting 5,000 target subscribers in 30 days. There is everything: a clear formulation, time frame, specifics and high probability of attainability.

Another planning model

The above was told how in most cases the main goal of business is put. But there is another, not common 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 away;
• Customers will feel the desire to buy goods / services from this company;
• Sponsors will remain interested in investments;
• Partners will want to continue cooperation with the company;
• Society will begin to wish that there are 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 can not be underestimated, because they are a resource, a driving force that develops the company. The same goes for the rest of the items. A good and right business is one that is able to benefit solvent customers in the market with low competition. It was the clarification of these simple provisions that allowed to get ahead of such big companies as Apple, McDonalds, etc.

Tasks

They are directly related to the goal itself. The first thing to note is the constant task. Their company decides during the entire period of its development. Without these tasks can not do. They disappear - business will disappear. It is the tasks that determine the very essence of the project and set the stage for it.

A simple example is a perfume company. Its main task is the production of toilet water, perfume and colognes. If it is not implemented, then the perfume company will cease to exist. So the constant task is the foundation of the business plan.

But there are also periodic ones. Such tasks the business puts on a short time span. Take, for example, the same perfume company. Having decided to increase the client base by 50,000 people per month, the management will put a periodic task (PP) before the firm.

Classification PP

It should be noted with attention, telling about the main goals of business. Since many of them are carried out precisely in the framework of periodic tasks.

They can be placed for a period of more than 10 years. These are tasks from the field of long-term financial planning. It is at the expense of them that they manage to form competent business management and dynamic, stable development of the company.

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

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

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

Financial objectives

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 the income and preserve the existing capital. And the centralization of management (if the company issues shares) and investment. The latter refers to companies that decided to enter the world market.

By the way, the notorious preservation of capital is extremely important. Because it provides business with stability and credibility of creditors. Even in a period when the financial crisis reigns.