What 2 factors affect business objectives?
No matter what type of business and which industry, every business has to have objectives to progress. Objectives, synonymous with goals, aims and intentions, are the results that a company wants to achieve. These objectives help to measure the successes and find out the shortcomings of the business to improve.
Types of factors that affect business objectives
There are 2 types of factors that will affect the business objectives which your company sets out for itself. These are internal factors and external factors.
Internal factors: Things that come from within the company and are therefore under its immediate control. Examples are:
- Human resources and employees
- Financial resources
- Marketing resources
- Brand image
- Equipment and physical assets
- Structure of business
- Size of business
External factors: Things that are not in the company’s immediate control and occur outside of its sphere of influence. Examples are:
- The economy
- Natural disasters and other environmental factors
- Political and legal alterations
- Technological changes
Can a business’s objectives stay the same?
No – they cannot. As your business model changes and it adapts, evolves and faces new challenges and tribulations, its objectives will change over time. That’s why practical business objectives have an operating time frame before they become irrelevant. For example, a small start-up might aim to grow to a specific size in a year. After a year or when that milestone is reached, it will need to be amended. Another example would be a business faced with an external factor such as an economic recession. It might have to amend their objectives to fit into the new setting by making the objective more manageable.
This is why businesses should constantly be re-evaluating and refreshing their objectives.
How to meet your business objectives?
In order to meet business objectives, a business must be able to firstly create business objectives that are thoughtful, effective and realistic. Also, don’t feel like you need to overburden yourself with the pressure to achieve a magnitude of high objectives. Think carefully about what you want to achieve – it is better to put your effort into one good objective than ten unremarkably mediocre ones.
Consider taking these three steps when thinking about how you’re going to achieve your business objectives:
- Prioritise your objectives: It might seem simple, but having your objective at the forefront of your mind or physically writing it down for all to see serves as a great reminder. Running a business is a huge responsibility, and those small daily tasks sometimes seem to keep us away from what’s important. Don’t allow yourself to get side-tracked. Every action you take should be bringing you closer to achieving your objective.
- Set out a rough plan of action: Scheduling and planning are incredible ways to make yourself be more organised and get your business closer to meeting its business objective. Implementing a schedule with consistent tasks and end dates will provide you with a sense of urgency. You won’t have time to be confused about what to do next as it’ll all be planned out in advance. All you will have to do is the act.
- Be considerate about your actions: When you’re vocal about your business objectives, you will feel pressure to make your actions fall in line with them. This makes your operations more rigid, but this can have a positive – you’ll be less likely to do something you will regret because you know exactly what you’re striving for.
To conclude, business objectives are a crucial part of your business plan and the rate of growth your business can achieve. Business objectives provide clarity and help to prioritise tasks – when you know where your focus should lie, you’re more focused to achieve.
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