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Aim and objectives of different type of businesses sample essay

When a business first starts trading it has few loyal customers and no reputation. The most likely objective for a start up business is simply survival. As the business grows and begins to win market share, the aim may shift towards expansion and increasing profits. Without aims and objectives there is no meaning to the business. The objective of both things to make business work even better than what it would normally do.

An aim – Where the business wants to go in the future and its goals. It is a statement purpose. Like want to grow the business in to Europe Objectives- give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It’s also enable the business to measure the progress towards its started aims The most effective business objectives meet the following criteria: Specific -clear and easy to understand.

Measurable – i.e. able to be quantified.
Achievable – possible to be reached.
Realistic – not ‘pie in the sky’.
Time bound – associated with a specific time period.

An example of a SMART objective is to increase profits 10% within the next 12 months. SMART objectives allow the performance of business to be identified. Purpose- the purpose of having aim and objectives is to plan a way forward which will help them to establish the future state of works in other word, how their business will be in a few year’s time part of this handle is planning.

So they have an uncertain concept that how they will achieve that certain goal and status in the business in few years time Another purpose of setting aims and objectives is to measure the performance, for example, how much profit they have made in the last year, so they know that they are doing better or worse than last year. They will provide information to those who are interested, which will lead to encourage them to do better. Break even- is the point at which cost or expenses and revenue are equal. For example, if a business sells fewer than 200 tables each month, it will make a loss, if it sells more, it will be a profit. With this information, the business managers will then need to see if they expect to be able to make and sell 200 tables per month.
Survival-

Diversifying- diversify your business by natural progression. For instance, if you sell men’s shirts, adding ties and cufflinks to the range are an obvious next step. More radically, you extend the brand by offering a much wider range of products that will nonetheless appeal to the same customers. Alternatively, you can use the strength of brand to move into new markets. Cost cutting- here is significant ways to save money without compromise: Don’t waste time- As a small business owner, you put in a lot of hours, but time is still a limited resource. Wasting time can cut into your sales and hurt your bottom line. As a general rule, anything that you can implement to save time will also save you money in the long run.

Cut Out Paper- According to research by Xerox, about 40% of office paper is discarded within 24 hours of anyone printing on it. If you add up how much you spend on printing supplies, paper, and labor, you’ll quickly see that using electronic file storage can save you loads of money. Shop Around for Insurance – There are a lot of great ways to lower your insurance costs, but the most important step is to find and compare insurance policies. You should always be looking for the best rates out there, especially at renewal time.

http://education.cambridge.org/media/576464/business_and_management_for_the_ib_diploma___cambridge_education___cambridge_university_press_samples.pdf

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