Business aims and objectives

• All businesses create aims and objectives to give them goals or targets to achieve.
• Businesses usually have a mixture of financial and non-financial objectives.
• A business aim is the overall target or goal of the business, whereas business objectives are the steps a business needs to take to meet its overall aims.
• A business may have several different objectives that will help it to meet its aim.
• An example of a business aim is ‘to make £120,000 profit close profits The amount of money made after all expenses have been paid.
• An example of a business objective is ‘to make £10,000 profit each month for the next year’.
• Business aims and objectives fall into two main categories: financial and non-financial.
• Business objectives are often created using the SMART acronym: S – Specific M – Measurable A – Agreed R - Realistic T – Time-bound.
• All businesses create aims and objectives to give them goals or targets to achieve
• Businesses usually have a mixture of financial and non-financial objectives
• A business aim is the overall target or goal of the business, whereas business objectives are the steps a business needs to take to meet its overall aims
• Financial aims and objectives are linked to money and cover:

  • Business survival: keeping the business operating for a certain amount of time
  • Profit: money left over after all costs have been taken away from any revenue made by a business
  • Sales: amount of a product or service sold by a business
  • Market share: percentage of the market that a business occupies
• An entrepreneur may have more than one financial aim or objective that they use to give their business direction
• Financial security relates to a business being able to afford to pay off all its costs and have enough cash left to survive
• Businesses create aims and objectives to give them goals or targets to achieve, usually having a mixture of financial and non-financial objectives
• A business aim is the overall target or goal of the business, whereas business objectives are the steps a business needs to take to meet its overall aims
• Non-financial aims and objectives in business are linked to anything other than making money for the business, categorized as:

  • Social objectives: linked to ethical or environmentally friendly practices or meeting a social need
  • Personal satisfaction: an entrepreneur feeling satisfaction from creating a successful business
  • Challenge: making the business successful to challenge the entrepreneur
  • Control: the entrepreneur's goal of controlling the business and its operations
  • Independence: an entrepreneur working for themselves and making key business decisions
• All businesses create aims and objectives to give them goals or targets to achieve
• Businesses usually have a mixture of financial and non-financial objectives
• A business aim is the overall target or goal of the business, whereas business objectives are the steps a business needs to take to meet its overall aims
• Reasons why aims and objectives differ between businesses:

  • Businesses operate in different sectors
  • Business operations vary in size and scale
• Different sectors:

  • The term ‘sector’ relates to whether a business provides goods or a service and the type of goods or service it offers
  • Businesses in different sectors have different aims and objectives tailored to their particular business
• Business size and scale:

  • The size and scale of a business impact its aims and objectives
  • A new business may aim for survival, whereas an established business may aim for profits
  • Small businesses may have objectives linked to expanding and increasing the scale of their operations
• All businesses create aims and objectives to give them goals or targets to achieve
• Businesses usually have a mixture of financial and non-financial objectives
• A business aim is the overall target or goal of the business, whereas business objectives are the steps a business needs to take to meet its overall aims
• Non-financial aims and objectives in business are linked to anything other than making money for the business
• Non-financial aims and objectives are categorised as:

  • Social objectives: linked to ethical or environmentally friendly practices or meeting a social need
  • Personal satisfaction: related to an entrepreneur feeling satisfaction from creating a successful business
  • Challenge: setting up a business to be challenged or taken out of their comfort zone
  • Control: goal of being able to control the business and make key decisions
  • Independence: desire for an entrepreneur to work for themselves and make key business decisions
• All businesses create aims and objectives to give them goals or targets to achieve
• Businesses usually have a mixture of financial and non-financial objectives
• A business aim is the overall target or goal of the business, whereas business objectives are the steps a business needs to take to meet its overall aims
• The main reasons that aims and objectives differ between businesses are that businesses operate in different sectors and business operations vary in size and scale
• Different sectors: businesses operate in different sectors based on whether they provide goods or services and the type of goods or service offered
• Business size and scale: the size and scale of a business impact its aims and objectives, with new businesses often aiming for survival while established businesses may aim for profits