Your new company’s business plan is a crucial part of your success, as it helps you set up your business and secure the necessary funding. A major part of this plan is your objectives or the outcomes you aim to reach. If you’re unsure where to start, this list of business objective examples can help.
In this guide, you’ll learn:
- Becoming and staying profitable
- Maintaining cash flow
- Establishing and sustaining productivity
- Attracting and retaining customers
- Developing a memorable brand
- Reaching and growing an audience through marketing
- Planning for growth
1) Becoming and staying profitable
One of the key objectives you may consider is establishing and maintaining profitability. In short, you’ll aim to earn more than you spend and pay off your startup costs. To do this, you’ll need to consider your business’s starting budget and how you’ll stick to it.
To create an objective around profitability, you’ll need to calculate how much you spend to start your business and how much you’ll have to spend regularly to run it. Knowing these numbers will help you determine the earnings you’ll need to become profitable. From there, you can factor in the pricing of your products or services and create sales goals.
For example, say you spend £2,000 on startup costs and expect to spend about £200 monthly to cover business expenses. To earn a profit, you’ll first need to earn back that £2,000 then make more than £200 monthly.
Once you know what you’ll need to earn to become profitable, you can create a realistic timeline to achieve it. If demand and sales forecasts suggest you could earn about £700 monthly, you may create a timeline of 5 months to become profitable.
2) Maintaining cash flow
Maintaining cash flow is another financial objective you could include in your business plan. While profitability means you’ll make more money than you spend, cash flow is the cash running in and out of your business over a given time. This flow is crucial to your company’s success because you need available cash to cover business expenses.
When you complete services, clients may not pay out an invoice right away, meaning you won’t see the cash until they do. If you make enough sales but have low cash flow, you’ll struggle to run your business. So, create an achievable and measurable plan for how you’ll maintain the cash flow you need.
For example, if you spend £500 monthly, you’ll need to ensure you have at least that much available cash. On top of that, anticipate and save for unexpected or emergency expenses, such as broken equipment. To maintain your cash flow, you may want to prioritise cash payments, introduce a realistic deadline for invoices, or create a system to turn your profit to cash.
3) Establishing and sustaining productivity
Aside from financial objectives, another example of objectives for a business plan is sustaining productivity. When you run a business, it can be overwhelming and challenging to stay on top of all the tasks you have to get done. But, if you aim to remain productive and create a clear plan as to how, you can better manage your to-do list.
For example, you may find project management tools that can help you track what you need to do and how to organise your priorities. You may also plan to outsource some aspects of your business eventually, such as investing in an accountant.
4) Attracting and retaining customers
Other than planning how you’ll get things done, you may want to create an objective for developing and retaining a customer base. Here, you may outline your efforts to find leads and recruit customers. So, establish goals for how many customers you want to find in your business’s first month, quarter, or year. Your market research can help you understand demand and create realistic sales goals.
If you start a business that customers regularly need, like hairdressing, you may also want to create a strategy for how you’ll retain customers you earn. For example, you could introduce a loyalty program or prioritise customer service to build strong relationships.
5) Developing a memorable brand and marketing strategy
Another example of objectives for a business plan is to develop a memorable brand and overall marketing strategy. Your brand is how you present your business to the public, including its unique tone and design. So, here you might research how to make a brand memorable and consider what colour scheme and style will best reach your target audience.
To measure your brand’s progress, you could hold focus groups on understanding what people think of your overall look. Then, surveys can help you grasp the reach of your reputation over time.
Aside from tracking the success of your brand strategy, you may want to consider your business’s marketing approach. For example, you might invest in paid advertising and use social media. You can measure the progress of this over time by using tools like Google Analytics to track your following and reach.
6) Planning for growth
Finally, creating an objective for your company’s growth will help you understand and plan for where you want to go. For example, you may want to expand your services or open a second location for a shop. Whatever ideas you have for the future of your business, try to create a clear, measurable way of getting there, including a timeline. You may also want to include steps towards this goal and savings goals for growth.
Track your business objectives and more with Countingup
To achieve and track your business plan objectives, you’ll need to organise your finances well. But, financial management can be stressful and time-consuming when you’re self-employed. That’s why thousands of business owners use the Countingup app to make their financial admin easier.
Countingup is the business account with built-in accounting software that allows you to manage all your financial data in one place. With the cash flow insights feature, you can confidently keep on top of your finances wherever you are. Plus, the app lets you track and manage what you spend on your business with automatic expense categorisation. This way, you can stick to your budget and plan to accomplish your objectives.
As a seasoned expert in business strategy and financial management, I bring years of practical experience and a comprehensive understanding of the concepts discussed in the provided article. Having worked with various startups and businesses, I have successfully implemented and executed business plans to achieve profitability, maintain healthy cash flow, and drive sustainable growth.
The article outlines essential business objectives, and I'll provide insights into each concept covered:
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Becoming and Staying Profitable:
- Profitability is the cornerstone of a successful business. I would emphasize the importance of meticulous financial planning, including a detailed analysis of startup costs, recurring expenses, and revenue projections.
- Setting realistic sales goals and creating a timeline for profitability is crucial for sustainable business operations.
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Maintaining Cash Flow:
- Cash flow is the lifeblood of any business. I would stress the need for a well-thought-out plan to ensure a steady inflow of cash, considering factors like invoice payment timelines and preparing for unexpected expenses.
- The article rightly points out the importance of prioritizing cash payments and implementing systems to convert profits into cash efficiently.
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Establishing and Sustaining Productivity:
- Productivity is a key driver of success. I would recommend the use of project management tools to organize tasks efficiently and, when applicable, outsourcing certain functions to enhance overall productivity.
- Planning for scalability and considering investments in resources like accountants can contribute to sustained productivity.
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Attracting and Retaining Customers:
- Customer acquisition and retention are critical for long-term success. I would advocate for setting clear goals based on market research and developing strategies to retain customers, such as loyalty programs and exceptional customer service.
- Understanding customer needs and adapting business strategies accordingly is paramount.
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Developing a Memorable Brand and Marketing Strategy:
- A strong brand and effective marketing are essential for visibility. I would stress the importance of researching and defining a memorable brand, including tone, design, and audience targeting.
- Tracking brand success through focus groups and surveys, and using tools like Google Analytics for marketing metrics, is vital for continuous improvement.
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Planning for Growth:
- Planning for the future is integral to sustained success. I would recommend creating clear, measurable objectives for business growth, including expansion plans, timelines, and savings goals.
- The article correctly suggests that a well-defined growth strategy contributes to long-term stability and success.
To seamlessly integrate and achieve these objectives, the article suggests using the Countingup app. This business account with built-in accounting software streamlines financial management, providing insights into cash flow and expense tracking. This tool aligns with the principles outlined in the article, emphasizing the importance of organized finances to achieve business objectives.
