Whether you’re a new business owner or a veteran returning for a refresher, here’s a closer look at common strategies to implement on your business plan objectives.
What Is a Business Plan Objective?
A business plan objective is a specific goal you hope to reach with your business. This may be a number of customers, revenue, or profit goal, among others. There are no right or wrong business objectives, in theory, but it’s important to take the time to pick the best goals for your unique business if you’re going through the work to create business plan objectives.
Be Specific and Define Clear Objectives
The SMART framework is a popular way to frame goals, and it can be helpful for creating objectives, too. To qualify, an objective must meet these criteria:
Specific: A general goal like “add more customers” could leave you floundering. Pick a specific number of customers. Every objective should have a clear finish line. Measurable: Identify objectives you can measure. For example, you can’t necessarily measure something like “customer loyalty,” but you can measure repeat customers, sales and revenue per customer, and other data points related to loyalty. Attainable: You might dream of turning your startup into a $1-million-per-year business. However, that may not be attainable in your first few years. What’s attainable varies widely by the business but in general, you’ll want to find the middle ground between unrealistic and underachieving. Relevant: Perhaps part of your business growth strategy involves social media. While it may be fun to see your accounts grow, that may not necessarily be relevant to your revenue and profits. Keep goals focused on what’s most important to achieve, which may not include vanity numbers that are more about ego than results. Time-bound: Each objective should have a deadline. If you give yourself unlimited time to get something done, you may never get around to it. With a set due date, you’re giving yourself a little pressure and motivation to hit that goal as planned.
Even if you don’t follow the SMART goals framework, it’s still wise to be specific and clear when choosing your goals and objectives. Vague and loosely defined goals often set business owners up for failure. Specific and clear business objectives give you and your team, if you have one, a common mission to work toward.
Break Down Objectives Into Tasks
Breaking each objective into smaller tasks can prevent teams from getting overwhelmed and even help you get a clearer picture of what you need to do to prevail. Smaller goals also help you see faster and more frequent successes, which is a good way to stay motivated. An added benefit is an opportunity to foresee any needed resources or roadblocks, such as a need for an outside consultant or a government-issued permit.
Assign Responsibilities and Allocate Resources
Entrepreneurs with “superhero syndrome” think they can do everything themselves and often get burned out in pursuing business goals. Rather than do it all yourself, even if you have the capability, it’s often wise to delegate to others. Employees, freelancers, contractors, and business partners are part of the team. When you can count on others and best utilize their time and skills, you take a wise step to reach your objectives.
Create Milestones and Monitor Progress
Just as it’s a good idea to set smaller goals along the way, it’s also wise to create key milestone moments and monitor progress. You may learn along the way that a certain process can be improved. When a process works well, try to capture and double down on that success. When you stumble or discover inefficiencies, you could have an opportunity.
Be Mindful of Risks and Create Contingencies
Not all things go according to plan. If you miss the mark, you could join one of the millions of failed business owners. Stay mindful of risks and if it may be time to pull the plug rather than sink in more money. Also, you may find successes outside of what you expected. Even the biggest companies pivot to a related product or service when their first idea fizzles. Remember that there’s a lot you can’t control in the business world, so not all business failures should be considered personal failures. Instead, look at them as learning opportunities to draw on in the future. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
