The main purpose of business. How to set business goals

The Definition of business goals – that which begins with every case. Whether the organization is a small firm individual entrepreneur or a multimillion-dollar project of a wealthy man. Many believe that the purpose of business in all cases is obvious, and it consists in the accumulation of capital. This is not entirely true. Profit, of course, is one of the reasons why people start their business. But often several.

Project Implementation

What distinguishes a good businessman from the bad? The fact that the last first puzzled by the questions related to profit. It is unlikely that it generally are interested in something other than money. The good businessman has an idea for a project, and he's obsessed with it in reality.

A Promising idea is very important. She is the driving force that can make to develop the project. If the person is keen on the idea, that he will do everything to implement it, will attract the audience, the customers. Over time, the business begins to grow, together with it will increase revenues that will cover all previously incurred costs.

So that the implementation of the project – this is the main purpose of the business. The idea is to match the inclinations, abilities, knowledge, skills, interests, and level of education of the entrepreneur. And to be relevant, that is, LP. There is a popular temporary phenomenon, which can suddenly make a fortune. A vivid example can be considered the recent boom in portable monopod for selfie. Now their popularity waned, and make implementing them a lot of money will not work. Because it is important to take on such a business idea, the relevance of which will only grow with time. Or at least remain stable and interesting to customers.

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Profit

It is to underestimate it is not necessary. Obtaining abundance – is also an important goal of the business. In addition, it offers several factors.

First, without financial inflow the company will not grow. The entrepreneur can purchase raw materials, materials, equipment and to pay work of hired workers.

Second, the availability of reserve capital leads to the retention of the company in the market. In crisis to cover the expenses and continue business development can only the person who made the stock for the future in advance.

Third, due to the profit the entrepreneur meets their individual and social needs. He gets the tangible evidence that its work benefits society.

Fourth, the profit margin gives insight into how the company is successful and promising, and earlier decisions business development – appropriate and justified. This is especially important in those cases, if the firm attracts the attention of traders, analysts, sponsors and investors.

Feature goals

About her too should say a few words. So, the goal of business should be clearly formulated. Otherwise fail in the end to determine, was able to achieve it or not.

Also, the purpose must be limited in time. To indicate the date and the result that will be available at the time. Which needs to be quantified. It is important to remember: that which is immeasurable, is not the purpose.

But the most important thing – it's realism. No need to set unrealistic goals. On the contrary, even better to slightly underestimate the bar. But then the fulfillment of the plan will bring joy.

Example

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

For example, people decided to organize their activities online. To organize the community in a social network, such as on which he will be able to earn money through affiliate programs and advertising.

In this case, it is optimal to set a goal that of bringing a target of 5,000 subscribers in 30 days. It has everything: clarity, timelines, specifics and a high probability of attainability.

A Different model of planning

It has been Above told about how in most cases is the main goal of the business. But there is another, not the conventional planning model. Which is nevertheless correct and very simple.

The Main goal of every entrepreneur should be the creation of a special environment in which:

• Employees will want to begin to work, and this desire they will not fade away;
• Customers will feel the desire to buy goods/services from the firm;
• Sponsors will remain interested in the investment;
• Partners want to continue cooperation with the firm;
• The company will begin to wish, to such companies has become greater.

From this side for many entrepreneurs it would be useful to look at the goals and objectives of the business. Because the corporate environment is really can either motivate or demotivate employees. And they should not be underestimated as they are a resource, a driving force that develops the company. The same applies to the remaining paragraphs. The good and the right business is one that is able to benefit paying customers in the market with low competition. It is the understanding of the simple provisions allowed to get aheadsuch major companies as Apple, McDonalds, etc.

Tasks

They are directly related to the purpose. The first thing you need to note a constant challenge. Their company decides for the entire period of its development. Without these tasks can not do. They will disappear – and lost business. What tasks define the very essence of the project and ask him the basis.

A Simple example – 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 a constant challenge – it is the Foundation of the business plan.

But there are also periodic. Tasks such business puts on a short time frame. Take, for example, the same perfume company. Deciding to increase client base by 50 000 people per month, the user will supply to the firm, the periodic problem (PP).

Classification PZ

It's worth noting the attention, talking about the main goals of the business. Because many of them carried out in the framework of periodic tasks.

They can be for more than 10 years. It – problems in long-term financial planning. It is due to their is difficult to create good business practices and a dynamic, stable development of the company.

There is the so-called five-year plan. As the name suggests, it is possible to understand, what is the maximum term of performance of these tasks. 5 years – a standard time period during which the business has reached a certain level.

The Annual PZ are installed on the 365 days. They are aimed at increasing the volume of business. Annual PZ relevant to the new business. Companies that operate for a long time, include these tasks in the plan for five or ten years.

In addition to these, there are the quarterly tasks. They usually plan in the period of crisis and economic restructuring. All because for one quarter may be events that can radically change the plans for the future 5 or 10 years. The most striking example of the modern can be considered the incident a few years ago, the fall of the ruble.

Financial tasks

Now we will focus on what many perceive as the main goal of the business plan and all business in General. Financial challenges – increasing revenue and maintaining existing capital. And centralization of control (if the company issues shares) and investment. The latter refers to the firms that decided to enter the world market.

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