Business aims

• What do businesses need to have to achieve their goals?

  Aims
• What are financial aims based on?

  Money or number of sales
• What is the main short-term aim of new businesses?

  Survival
• What percentage of new firms close within five years?

  60%
• Why is survival important for new businesses?

  To have enough revenue to stay open
• What do most firms aim to maximise?

  Profits
• Why might a new firm take years to make a profit?

  Initial costs and investments are high
• What does market share indicate?

  Percentage of total sales a company has
• What is one of the first aims of a new business regarding market share?

  To capture a part of the market
• How can a business increase its market share?

  By taking sales from competitors
• What is a good way for a business to grow its market share?

  Maximise sales
• How can sales be monitored?

  By tracking product sales or revenue
• What might happen if a business reduces prices to increase sales?

  It may not make as much profit
• What is a common aim for new businesses regarding financial security?

  To depend on its own revenue
• What do managers use business aims for?

  To make decisions about business operations
• What are objectives in relation to business aims?

  • Specific measurable steps towards aims
  • Help track progress and success
  • Can relate to various business aspects
• What are some non-financial aims for starting a business?

  Personal challenge, satisfaction, independence
• What is one reason people start businesses for personal satisfaction?

  To follow an interest or passion
• What does gaining independence and control mean for business owners?

  They make decisions about daily operations
• Why do some firms focus on doing what's right for society?

  To act morally and gain consumer trust
• How do objectives help businesses achieve their aims?

  • Provide clear targets to work towards
  • Are measurable and specific
  • Allow for assessment of success
• What factors affect a business's aims and objectives?

  Size, age, ownership, competition
• What do small and new businesses typically focus on?

  Survival and growth
• How do larger businesses differ in their aims and objectives?

  They may focus on social aims to avoid bad publicity
• What might small business owners prioritize over sales growth?

  Personal satisfaction
• How does competition affect a business's aims?

  It may lead to a focus on survival or sales
• How can business aims and objectives change over time?

  • Businesses may grow or shrink
  • New owners can alter aims
  • Market changes can influence objectives