While setting up a new business, you have a few goals in mind like making an impact to the society, making X amount of profits, employing 100+ people, getting the business listed on the stock exchanges, etc. Some business owners may have better laid out plans for their enterprises then others.
In any case, a business needs to have a few objectives of its own. What are the ideal objectives that a business has? Or should have? Let us check out the major Objectives of Business in this post.
The Major Objectives of Business
Objectives are what provide a clear target and help as the driving forces for achieving your business goals. If you want your enterprise to grow & prosper, you need to have clearly defined objectives for driving your business ahead.
Objectives are defined as the purpose for which a business has been started. A business can have several objectives and broadly classified into different subcategories as follows-
- Economic Objectives
- Social Objectives
- National Objectives
Economic Business objectives are perhaps one of the major objectives for launching a business. A business is normally started with the purpose of earning a profit and working towards that goal. These can be further classified under the following subsections.
1) Earning Profit
Undoubtedly, this is the major objective of business and remains the life force of any business. Profit plays a major role in survival, growth and further expansion of your business. In addition to helping business owners and the employees make a living, the profits can also be helpful in growing the business further by reinvesting them back in the business.
2) Gaining Customers
Customers are crucial for any business without whom the business can not survive. They are the ones who help you earn a profit. Gaining customers to your business is an important exercise, and it can be achieved with a focus on the right form of marketing. The marketing in itself has a few other objectives which would help you achieve your business goals with ease.
3) Optimum Use of Resources
A business needs a host of resources to work with. The minimum requirements for business include raw material, machines, workforce, and other requirements. Your prime objective as a business owner should be to make optimum use of all the resources available to you. Any business has limited resources, and the best strategy should be to make use of these resources to the maximum possible extent.
Make sure you indulge in as much innovation as possible to bring in an advanced functionality in your business. Adapting better methods of production and taking in the latest technology can be one of the best means of achieving this objective.
A business is set up in a society. You, as a business owner, have used the resources provided by society. Social objectives are defined as those objectives of a business developer for the sake of society. Every business should aim at giving something in return to society.
No business should have an option of troubling society. There are a few business objectives from the social perspective, a few of which can be summarised below.
1) Good Quality Products and Services
Now that your business rests on the resources provided by the society at large, it, in turn, expects you to provide a better quality of products and services. A good business objective should be to produce quality goods or offer quality services at the perfect level.
You should avoid inferior product quality as it can cause serious concerns to the health of the customers. Even the pricing needs to be according to the quality of the service being provided. Another important objective that a business should follow religiously is to provide timely delivery of products and services.
2) Trade Practices
Hoarding of the materials with an aim to create artificial scarcity, black marketing or indulging in adulteration are some of the practices a business will always want to steer clear of. This kind of unlawful and unfair trade practices can lead to customer dissatisfaction and the ultimate closure of the business.
Overpricing is yet another practice you need to avoid as an ethical business owner. Misleading advertisements also constitute to the illegal trade practices and amount to breaking the trust of the customers. If you do not want to earn a bad name for your business, it should be your objective not to indulge in an unfair trade practice.
3) Contribution to Society
One of the major objectives of business should be the upliftment of society at large and working towards the welfare of society. How about running or assisting schools and colleges for a better level of education? Some business houses plan vocational training at schools and colleges. This can also be helpful in getting your workforce requirements fulfilled from this training.
Another option you can check out can be establishing the hospitals or aiding them in providing better medical facilities. Business houses can also take part in setting up recreational facilities like children’s parks and sporting championships.
National Level Objectives
A business thrives based on the support provided by the nation and its policies. As an integral part of the nation, a business should always focus on fulfilling the national objectives and goals. Make sure your business has an objective of reaching up to the expectations of the government and the national institutions.
Some of the national Business objectives can be summed up as
1 ) Creation of Employment Opportunities
It should be one of the prime national objectives that a business needs to focus on. Setting up new manufacturing plants, setting up a nationwide marketing network of retailers and distributors, and expanding the business to multiple locations are some of the ways you will be able to achieve this goal. Make sure your business creates direct or indirect employment opportunities for the national youth.
2) Social Justice Objective
A business is expected to serve the people of the nation without any sort of prejudices and social discrimination. The opportunities and welfare schemes provided to the employees should remain the same irrespective of their cast, creed, religion, gender, and rank. Your business is also expected to pay attention to the economically and socially backward sections of the society as per the national regulations.
3) Contribution to the betterment of society
Another important objective you need to pay heed to is to pay your taxes and other dues honestly. The aim should be to increase the revenue of the government so that the nation will progress along with your business.
4) Focus on exports and reducing imports
Enhanced focus on the exports will ensure that the nation will grow self-reliant and achieve the best results. As one of the reliable and capable businesses, your objective should focus on the reduction in the imports and if possible, work towards enhancing the exports. Exports will help you achieve the task of improving foreign exchange reserves.
5) Humanity oriented Objectives
One of the best objectives that you would focus as a business would be to the well being of its employees. This includes economic wellbeing of the employees along with the focus on the social or psychological well being of the employees.
6) Economic satisfaction of employees
Employment benefits provided by the business to the employees should be in tune with the national guidelines. Along with the remunerations commensurate with the experience and the government guidelines, you should also provide other benefits like provident fund and other retirement benefits. Also, it is also expected of them to provide other efficient well-being facilities like medical facilities, housing benefits, and similar other options.
7) Social satisfaction of employees
Another objective of a business is to focus on providing both social and psychological satisfaction to your employees. A proper work-life balance is one of the essential elements and goes a long way in making their work bot76h challenging and interesting. Make sure that you have put the right candidates on the right kind of job. Make sure you provide enough opportunities for promotion and career advancements.
Make sure you are also paying a good deal of support to the social and economically backward sections of the society. It should also be important to note that government guidelines expect you to pay enough attention to the people belonging to physically and mentally challenged. Some of the initiatives that can help achieve better prospects to the employees can range from providing training programs to the economically backward classes.
Here is a video by Marketing91 on the Objectives of Business.
Well, those were a few objectives of business and the initiatives you should take for achieving these objectives. Of course, a business may change its objectives when it comes to the economic category we just discussed, but most of the objectives should be quite common across any business.
Please note that while these goals tend to be quite essential for the enhanced and proactive role your business can play in a society, an individual business may add more goals and objectives depending on the nature of the business in question.
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