When starting up a small business, there are countless factors demanding your attention. But what separates the winners from the rest is their clarity of purpose. Entrepreneurs who establish well-defined objectives from day one position themselves for exponential growth while their competitors stumble through uncertainty. So let’s dive into how to define and achieve your objectives so you can work smarter, not harder and build the successful business you’ve always envisioned.
What are business objectives?
Business objectives are defined results your business is working to achieve in the long run. Think of business objectives as your North Star. Without them, you’re essentially navigating in the dark, making decisions based on gut feelings rather than strategic direction. Companies with clearly articulated results are 10 times more likely to achieve significant growth compared to those operating without defined targets. Objectives can range from marketing to finances to organisation; the key is just that they align with your overall vision.
Business objectives vs goals
Entrepreneurs often mix the terms “objectives” and “goals” interchangeably, but they’re not the same. While both should correlate with your business’s key performance indicators (KPIS) and business strategy, the way they are each outlined is slightly different.
Business goals sum up your direction and answer the question “What do you want to achieve?” Goals are broader, aspirational statements that describe your desired outcomes; they’re your business vision translated into achievable milestones. You can still make them SMART goals, meaning they are specific, measurable, achievable, relevant, and time-bound, but they won’t usually include the multiple tactical steps needed to achieve them; that’s where business objectives come in.
Business objectives are your roadmap; they answer “How will you get there and how will you know you’ve arrived?” Objectives are specific, measurable, and time-bound action plans, too, but they break down your goals into trackable steps.
Let’s put this into real life. Say your goal is to “become the leading provider of eco-friendly packaging in Melbourne,” objectives that would support this goal could be anywhere from:
1. Launch 3 new sustainable product lines by Q3
2. Increase market share from 15% to 25% within 18 months
3. Reduce production costs by 12% through process improvements
The goal of being the leading eco-friendly packaging is broad, aspirational, and long-term focused, while the 3 objectives are much more specific and measurable. They are time-bound to a certain period, such as Q3 or 18 months, and often have a deadline. Goals will be your overall desired outcome, while objectives are going to be the tactical, actionable steps to get it done. The most successful entrepreneurs understand that objectives aren’t just wishful thinking; they’re strategic tools that take action.
How to define business objectives?
There are hundreds of different ways to create business objectives; the most effective method follows three fundamental steps:
Step 1: Know your business inside out
Start with an honest assessment of where you stand today. What are your biggest strengths that give you an edge in the competitive market? What weaknesses are holding you back from achieving more? This isn’t about being overly critical; it’s about being realistic so you can build on what works and fix what doesn’t.
Step 2: Identify your growth opportunities
Next, look for gaps between where you are now and where you want to be. These gaps become your target areas for improvement. Maybe you need more customers? Better processes? Stronger cash flow? With target areas clear, it’s easier to set goals and objectives.
Step 3: Create objectives that bridge the gap
When you see an opportunity, turn it into a specific, measurable objective. Think of the SMART method. Instead of “get more customers,” try “increase customer base by 30% within 6 months through targeted social media campaigns.”
Your objectives should directly address your weaknesses, leverage your strengths, and capitalise on your opportunities. When they’re aligned this way, every effort you make pushes your business forward strategically rather than just keeping you busy.
How to start setting business objectives
If you have many ideas competing for attention in your head and are unsure where to start, we’ve got you covered. Let’s look at how to start making objectives today.
Have a grip on your finances:
To run a good business, you need to be financially stable. Without that, it’s hard to stay afloat. Start by setting objectives that strengthen your financial foundation: optimise cash flow timing, develop clear profit targets, and identify cost-cutting opportunities that won’t hurt your operations.
Understand your customers:
Once you have finances in check, it’s important to think about who you’re selling to: your customers. Critically think, who are your people, what do they want, and how can you provide value to them? Discovering their pain points will make it easier to know what goals and objectives you need to set for your business.
Manage your team:
Then, start to look internally towards your team. Internal business objectives are necessary in goal setting because your team makes up the core of your business and can make or break what you can do. With a strong, capable team, you’ll be able to overcome challenges, competition, and market changes. Without the right people in place, even the best business strategies fall apart. So, set objectives around areas such as management, company culture, and social responsibility; this way, you keep your business and team #1.
Make room for growth:
The best way to keep growing is by learning. When you stop learning, you stop growing. That’s why smart entrepreneurs create specific objectives around continuous improvement. One way to do this is by helping your team get better at what they do, since they’re the core of your business. Set objectives like “train 5 employees in new software this quarter” or “send 2 team members to industry conferences this year.” When your people improve their skills, your business capabilities expand too.
If you want to exponentially grow as a business, consider upgrading the tools that run your business. This might mean improving your customer database, expanding your professional network, or updating your technology. Better systems make everything else easier and more efficient. Another option is building out objectives around leadership. Work on how your business operates from the top down. Focus on becoming a better leader and creating a workplace where people want to do their best work. Good culture attracts good people, and good people drive good results.
Ways to achieve your company objectives
The best thing you can do to achieve your objectives is to consistently remind yourself and your team. Keep track of what steps you’re taking every day to get closer to the finish line. If you’re a visual person, have them on post-it notes on your work desk, write them down in your journal, or bring them up for meaningful discussions during progress reports in team meetings. Check in with your team members and see how they’re aligning their tasks with these goals and objectives, too. The only way they’ll truly fail is if you completely dismiss them and forget. If you keep them ahead of you as a guiding light, then they will direct you onto a path towards the success you are looking for.
Make your objectives your superpower
Goals and objectives are here to make your life easier and clearer, so why not start setting them today? They’re here to guide you towards a path of success, so use them as your superpower!
If you’re a small business owner looking for a place to set up your own business, our community at Haven Workspaces has a wide range of coworking spots, such as private offices, dedicated desks, and shared flex desks, that suit all sorts of solo entrepreneurs, small business owners, and team meet-ups.
Get started and learn more about our offerings at Haven here.
