Business goals and objectives are part of the planning process. They are describe what a company expects to accomplish throughout the year. Business owners usually outline their goals and objectives in their business plans. These goals and objectives might pertain to the company as a whole, departments, employees, customers and even marketing efforts. Most companies use specific measurements to keep track of their goals and objectives.
There are many types of goals and objectives. Small companies usually have certain sales and profit goals; for instance, they might aim to increase customer counts in stores or restaurants. Goals and objectives might also pertain to employees. For example, a small electronics company might plan to hire 25 new employees in its first year. It might also have specific training goals for these employees. Marketing managers usually have their own department goals, to introduce five new products in the current year, for example.
Small companies use various goals and objectives to make progress. Once business owners reach certain goals, they typically strive for even loftier goals. Business owners must communicate their goals and objectives to the entire company so everyone can work in synch in achieving them. Goals must be realistic, specific and measurable, according to the National Business Information Clearinghouse. Small business owners must also assign specific time frames for achieving their goals and objectives.
Companies measure goals and objectives over certain time intervals, using certain variables to report progress. Businesses might measure sales and profit goals and objectives each week, month, quarter and year. Some operators, such as restaurant managers, might need to track sales on a daily or even hourly basis, to determine how many restaurant workers are needed, or when to send people home, keeping labor costs in line. Company owners might expect certain percentage-point increases from year-to-year when establishing sales goals and objectives. Customer counts are also typically measured in numbers. And companies measure the number of trained sales reps as a percentage of the entire sales force.
Smaller goals and objectives serve as stepping stones for greater accomplishments. Public businesses are also expected to report certain statistics, including sales, profits and earnings per share. Companies that are successful in meeting goals and objectives can attract more investors or shareholders. Statistics also help companies gauge their success against competitors.