1.5

• AIMS of a business is what the business want to achieve in the long term, they usually tend to be quite general.
• OBJECTIVES of a business are the goals or targets that need to be met in order to achieve an aim.
• Businesses need to have objectives for the following reasons:

  • employees need something to work towards. Objectives help to motivate people.
  • Without objectives owners might not have the motivation needed to keep the business going. Owners might lose grip and allow their business to 'drift' which could result in business failure.
  • Objectives help owners decide where to take a business and what steps are necessary to get there.
• Businesses objectives should be SMART:

  Specific - stating clearly what is trying to be achieved

  Measurable - capable of numeric measurement

  Agreed - have the approval of everyone involved

  Realistic - able to be achieved given the resources available

  Time-specific - have a stated time by which they should be achieved
• other business objectives might include:

  • sale maximisation - increasing sales as an objective
  • market share - trying to increase amount of market share is a common business objective
  • Cost efficiency - businesses may consider how to reduce their costs . Might be pursued when trading conditions become difficult due to more competition or economic downturn.
  • Employee welfare- this will make workers happier and better motivated
  • Customer satisfaction - trying to meet the customer needs
• Business growth: most owners want to grow their business, this is usually because larger businesses enjoy a higher profile in the market place, larger revenues, lower unit costs due to economies of scale and higher profits.
• Characteristics of an entrepreneur:

  self confidence - successful entrepreneurs are people who believe that they are going to succeed. They think they have a winning formula for their business. They can persuade other people to buy the product or help finance the business.
• Characteristics of an entrepreneur:

  Self-determination - successful entrepreneurs are ones who think they can take control of events going on around them. They can influence those events and turn them into something which will benefit their business.
• Characteristics of an entrepreneur:

  self-starter - many people work best when being told what to do. But to be a successful entrepreneur, you have to be a self-starter. Entrepreneurs are able to work independently and can take decisions. They have their own ideas about how things should be done and they are able to develop those ideas.
• Characteristics of an entrepreneur:

  Judgement - the business environment is changing all the time. A successful entrepreneur is one who is taking in information and listening to advice. At the same time, they are able to see where the business might go in the future and what they want out of the business. This helps them make judgments and decisions.
• Characteristics of an entrepreneur:

  Commitment - Many people think when starting up a business that it is going to be easier then working for someone else. All the evidence shows that entrepreneurs work longer hours than those with a normal job. Running your own business can sometimes be more stressful because of the risks that are always present. So successful entrepreneurs are ones who are committed to what they do.
• Characteristics of an entrepreneur:

  Perseverance - All businesses have success and failures. There is always an element of risk that their business could perform poorly or even fail. Therefore, successful entrepreneurs have to show perseverance. They have to be able to get through the bad times and the setbacks.
• Characteristics of an entrepreneur:

  Initiative - Successful entrepreneurs are able to take the initiative in situations. They don't allow events to overwhelm them by doing nothing. they are able to change and be proactive.