The objectives of your company
Starting a business is a risky project and requires a lot of effort and preparation. It’s hard to imagine an expedition to climb Everest without planning and without goals. As we can not imagine Christopher Columbus crossed the Atlantic without a minimum of preparation. Goals are the results you want to achieve. For example, we may have the goal of climbing Mount Everest or sailing across the Atlantic.
The objectives are used to guide the action, but they are also used for motivation. For this reason, it is important that they be realistic. Hard-to-reach goals will have a negative impact on motivation while goals that are too easy to achieve will also have the same impact on motivation.
Objectives must be realistic and measurable given the environment and available resources. For example, objectives can be set for profitability (5% net profit), market share (1.5% market share) or human resources management (turnover rate below 5%).
The important thing in setting goals is to make sure you get it right.
Short Term Goals
Short terme Goals are the business objectives over a period of one year. It must be measurable and include a timetable. For example, a short-term sales goal could be to get monthly sales of $ 15,000 for the first six months and $ 17,000 for the rest of the year.
Medium Term Goals
The medium-term goals represent the objectives of the company over a period of 2 to 3 years. For example, it is possible to set a target of 10% market share in the next two years and increase the market share by 1% per year thereafter to 5 years.
Long-term goals are usually broad goals based on the company’s vision. Long-term goals are generally considered over a 5-year period. For example, it can be mentioned that one of the long-term goals of the company is to double turnover within 5 years or that 50% of turnover will come from outside the country.