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Business aims and objectives
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Before a business starts, the owner should decide what they want to achieve. Aims and objectives give the business direction.
Aims and objectives
An aim is a general goal, such as 'to be the best bakery in town'.
An objective is a specific, measurable target that helps achieve the aim, such as 'to sell 500 loaves a week by December'.
An objective is a specific, measurable target that helps achieve the aim, such as 'to sell 500 loaves a week by December'.
Financial and non-financial
Why they differ
Aims depend on the owner (some want money, others independence), the size of the business, the type of business (a social enterprise puts its cause first) and the competition.
Many start-ups simply aim to survive the first year.
Many start-ups simply aim to survive the first year.
A new business owner says: 'I want to increase my share of the local market from 5% to 8% in two years.' Is this an aim or an objective, and is it financial?
- It is specific and measurable, with a time limit.
- Market share is a financial objective in the specification.
Answer: A financial objective
Aims are general goals; objectives are specific targets. Financial: survival, profit, sales, market share, financial security. Non-financial: social, personal satisfaction, challenge, independence and control.
The interactive lesson includes the diagrams for this topic.
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