Financial Aims

Plans that involve meeting money-based targets are called financial aims. These could be linked to the amount of sales revenue to be achieved or the desired level of profits. Two examples of financial aims are to:

• make a profit
• achieve break-even

To make a profit, an enterprise must achieve a total revenue that is higher than its total costs.

This will leave a profit, or surplus, that can be used to improve the business, reward the entrepreneur or support a good cause. If the total revenue is equal to the total costs, then the business will have reached break-even.

Non-financial aims

Aims that do not involve meeting money-based targets can be grouped together as non-financial aims. These could be linked to other aspects of the business, such as becoming a recognised brand or to behaving in an ethical way. Two examples are:

• customer satisfaction
• social aims.

Customer satisfaction is achieved when the needs of customers are met before, during and after a transaction. This is important because it avoids complaints and builds a good reputation for an enterprise. This will help it to gain brand loyalty and repeat custom, which will, in turn, lead to an increase in sales. Not all enterprises are set up purely to make profits. An enterprise may also have social aims, such as meeting the needs of the community or providing support for a charitable cause. Enterprises with a social aim use the surplus of revenue over costs (their profit) to support their identified aim.

SPECIFIC - Your objective should be clear and specific, otherwise you won't be able to achieve it. When drafting your objectives, to answer the five "W" questions:

• What do I want to accomplish?
• Why is this objective important?
• Who is involved?
• Where is it located?
• Which resources or limits are involved?

MEASURABLE - It's important to have measurable objectives, so that you can track your progress and stay motivated. Assessing progress helps you to stay focused, meet your deadlines, and feel the excitement of getting closer to achieving your Aim. A measurable Objective should address the question; How will I know when it is accomplished?

ACHIEVABLE - Your objective also needs to be realistic and attainable to be successful. In other words, it should stretch your abilities but still remain possible. When you set an achievable objective, you may be able to identify previously overlooked opportunities or resources that can bring you closer to it. An achievable objective will usually answer questions such as; How can I accomplish this objective? How realistic is the objective, based on other constraints, such as financial factors?

REALISTIC - This step is about ensuring that your objective matters to you, and that it also aligns with other relevant objectives. A relevant objective can answer "yes" to these questions; Does this seem worthwhile? Is this the right time to complete it? Am I the right person to reach this objective?