| When starting up a business you will soon learn that a | | | | the fastest etc. Measurable targets should include |
| business plan will be very useful. The business plan is | | | | sales turnover, net profit and capital expenditure. |
| very important and has many uses. For example, to | | | | Achievable |
| raise capital and shares you will need a business plan | | | | Your objectives must be achievable. This means your |
| to present to lenders and banks. A business plan will | | | | business must have the capacity and resources |
| also help you devise a blueprint for your business in | | | | available to achieve what you set out to do. |
| terms of what it will achieve and how it will achieve it. | | | | Realistic |
| It is important that you set out clear objectives so you | | | | It is easy to be carried away by setting objectives |
| know what you are aiming for. These objectives will | | | | based on enthusiasm. However, you need to be |
| need to go into your business plan. The most effective | | | | realistic when setting your objectives. For example, if |
| way to use objectives is to set SMART objectives. | | | | your business has on average increased its sales |
| SMART is an acronyms for Specific, Measurable, | | | | turnover by 10% each year then stating that your |
| Achievable, Realistic and Time. | | | | sales turnover for next year will double needs to be |
| Specific | | | | backed up by supporting evidence to prove that it will |
| Your objectives should be specific and not ambiguous. | | | | be possible. |
| If you are forecasting that your business will be | | | | Time |
| increasing sales compared to last year then you need | | | | Setting a date and a deadline is very important when |
| to be specific about what that increase will. For | | | | setting objectives and goals. Without setting a time |
| example, sales will increase by 15% by the end of the | | | | when the objective will be achieved will likely cause |
| next financial year. | | | | delays and in many cases the objectives will not be |
| Measurable | | | | achieved. Avoid vague terms such as short or |
| Measurable objectives enables you to identify if | | | | long-term. You need to clear and set specific deadline |
| progress is being made or not. Therefore, avoid using | | | | for the accomplishment of each objective. |
| ambiguous terminology such as the best, the largest, | | | | |