Business objectives are specific statements that give projections about growth or development to companies. Business objectives are important to give direction to a business. If you are running a business without any business objectives, you shall not be able to grow successfully in any direction. Having business objectives, gives you a much better understanding of where you stand, how to improve and what changes in your current method of working will be required to reach your objectives. Not having business objectives leads to an un-coordinated business that has a very low probability of being successful. Some examples of Business Objective are: "Sell 1000 units of product A and 500 of product B by December 31, 2010" or "Maintain a minimum of 5% market share in the soft drinks segment in Petaling Jaya during the whole of 2011".
When setting business objectives, one must make sure that they are:
- Quantitative: The business objectives should be expressed in terms of numbers. It should not be expressed vaguely like, "Our sales should go up!"
- Time-frame specific: Time frames should be specified in the business objectives. This helps you to understand where you stand with respect to the completion of the current objective.
- Flexible: It is very important that your business objectives are adaptable to change. If the situation in which the business is working changes, the business objectives should change to reflect these changes.
- Understandable: The business objectives should be made in an understandable way. This helps in communicating your objectives to your investors, employees, partners etc. Without this communication of business objectives, it becomes very difficult to reach them.
- Realistic: It is important that the business objectives are realistic, or you may end up disappointing your investors and yourself.