Business objectives are an important part of any business plan, but they can be intimidating to write. There are some ways to write them that make them a bit easier to get them down on paper. It is important to get them written so that all people in the company have an idea of where the business is going. This way, everyone is on the same page and working towards the same thing. Here is a look at how to craft business objectives and some examples of them.
Why Craft Business Objectives
It is important to craft business objectives because a business without goals is one that does not have direction. No direction means a loss of money and time, and no business wants to lose these two things. Writing down the objectives is also the best way to solidify and communicate the objectives to all who are involved with the company. Even if the company is self-run, it is important to have these objectives clear to help measure business success.
Method of Writing Objectives
One way of crafting business objectives is by using the SMART method. SMART stands for specific, measurable, achievable, realistic, and time bound. An objective should meet all of these requirements. It should not be vague, should be something that can be measured, and should be realistically achievable. It is also important to include a time statement in the objective to help limit the time the goal should be accomplished in.
Looking at an Example
Business objectives will vary by company, but there are a few different ways of crafting them according to the SMART formula. For instance, a business objective to increase sales by 50% over the next six months would be a good example. Of course, one would have to make sure that this was a reasonable and realistic goal. Increase customer satisfaction by 90% in 2010 would be an example of an objective, but, again, one would have to be careful about its realistic component.
A List of Examples
Reduce spending by 10% in 2011. Increase sales by 50% before the end of the year. Get 50 new clients in the next six months. Research four new products for release in the next month. Increase market share by 20% in the second quarter. Increase customer satisfaction by 10 points in the next six months. Cold call 200 new clients in the next month. It is important to remember to list who, what, where, when, and how and to remember the SMART method for making business objectives.
Hopefully, this gives a good idea about how to construct good business objectives. They are really specific to one's company and are quite variable. Using the SMART format, it should be quick and easy to come up with a few good business objectives. Just remember that it is important to have a goal and that the goal must be measurable and realistic. Those two things should make crafting a business objective no problem at all.