As experts advise, you must decide on its main goals before starting your own business. But in the process of activity, goals can change significantly. Then you have to correct them. So what are small business goals, and why do they need to change?
Purposes for a business project: how to set it correctly?
The company’s purpose is the desired result, the achievement of which is aimed at its activities. They serve as the starting point for forecasting and planning its activities. They form the basis of building organizational relationships. The purposes are the starting point in evaluating and monitoring the work results of individual employees, departments, and the company. A goal tree is formed in a large company with several different structural divisions and several levels of management, which decomposes higher-level goals into lower-level goals.
One of the most important strategic management is the company’s development goals. These goals reflect the ratio between the rate of change in sales and profits of the organization and the industry as a whole. Depending on what this ratio is, the growth rate of the organization can be fast, stable, or it can decrease. According to these growth rates, the purpose can be either for rapid growth, stable growth, or reduction. The purpose is a specific result, the achievement of which will cover some important needs formulated in the mission.
What can you do with the correct purposes?
With correct identification of the business purposes, the company can:
- Make decisions based on a specific goal, not the format “We need to move somewhere, so we do this,” “Competitors do it, and I do it.”
- Feel more deeply about the processes of your company. Since to set the correct goal, you need to be at least aware of what is happening in the company and beyond.
- Determine the priority directions of the project movement
- Structure all your “wishlist tasks” and work on them in sequential order
- Understand if you have achieved the desired result
- Understand what restrictions need to be lifted to set more ambitious goals
- Identify and correct mistakes that hinder the achievement of the goal.
- Rally a team around achieving a specific goal, thereby increasing the efficiency of your work
- Stop wasting time looking for a new goal when the previous ones are completed.
- Timely adjust the direction of the company or respond to market changes.
The purposes cover all areas of work of the company, its employees, partners, customers, and suppliers. For example, one small company may need about 50 target installations of different levels for comfortable work. Therefore, it is important to understand the goals to set them correctly.
Rules for setting purposes and objectives
There are universal rules for setting goals and tasks to be followed regardless of the chosen approach:
- Clearly formulate goals and objectives: define the deadlines and describe the final result you want to achieve in detail.
- Avoid duplication and repetition, especially when forming a tree of goals: goals should be interconnected, not the same.
- Choose priority goals. Their number is limited and optimally, with no more than 3 formulations.
- Fix goals: write them down on paper, print them electronically, and put them in planning plans. The fixation format is not so important; the main thing is that the goal must be documented.
- Set specific deadlines for implementing the final goal and intermediate tasks in the format day-month-year.