The main goal of a business is to make a profit. Business and organization development goals


In today's economy, business plays a dominant role. It is to him that we owe almost all the existing economic benefits that determine modern conditions human existence (housing, clothing, food, intellectual leisure).

Business changes, it takes various forms, evolves and attracts more and more people who give it the best years of their lives.

AT modern society the concept of "businessman" is something like a title. Not everyone can proudly call themselves a businessman, because for this it is necessary not just to work in the field of market relations. And not every process can be called a business. Nevertheless, it forms the basis of the modern economy, it has its own goals and objectives.

So what are the goals of a business? First of all, the most important goal is income, which is obtained by combining material, labor, financial and information resources. That is, we invest money, for example, in equipment and materials, add the labor of workers here and use some technologies to create some kind of product. As a result, we sell goods and receive income.

The next goal can be called the provision of services or goods that are needed in the market in order to make a profit. As well as the creation of new jobs, the search for new technologies .... All this is done in order to generate income. Therefore, all business goals can in principle be reduced to one thing - making a profit. Of course, there are fans of their business, for whom the search for new knowledge is the main goal of their whole life, but if a businessman is involved in the business, then all these scientific theories work to increase material wealth and increase the number of crisp banknotes. Usually, the business of people for whom profit is not the main thing collapses very quickly. No wonder a businessman is primarily associated with the word "entrepreneur".

But what are the other goals of a business, especially if it is established, functions well and brings income to its owners? This is an image. Every self-respecting company has a code or set of rules that are never violated and allow the company to successfully exist. These traditions can be observed in the largest companies. But private entrepreneurs have them too. For example, the unspoken rule of the service industry is “The customer is always right.”

In addition to improving the image, there is such a goal as the impact on the economy. But it is very global. Therefore, whatever one may say, for all businessmen and enterprises, the most important goal is to increase income. And the image, the implementation of ideas, technologies, and so on are just ways and tools for generating income.

Everyone knows that the main goal of any business is money.

Everyone knows that businessmen need nothing but money. That they differ from other people in their insensitivity and selfishness. What is the brain of a businessman calculator incapable of love and friendship, but only capable of calculating the maximum percentage of profit. A businessman does not understand the word "sensitivity", his attitude towards employees is akin to slave-owning - let them work more, but get less, preferably only for grub. And he does not like people, for him the main thing is the ringing of coins. “There is no such crime that the capitalist will not commit for the sake of 300% profit,” as Marx wrote.

Hell yeah!

Manager and staff

It is true that a good leader does not feel sorry for his employees. A pity- an emotion of such a low order that, immersed in it, it is impossible to make any reasonable decisions. It is true that a leader who is humane will never stop at a choice between benefiting one person or benefiting the whole group. The group is bigger, so it's more valuable. To cause pain or inconvenience to one person for the benefit of several tens, hundreds or thousands is rational decision. It becomes unreasonable only if the cruelty is unjustified, or if the result could be achieved with less destruction.

Example. The employee is a good salesperson, but "rows" customers, belittles other employees, mocks them, spreads bad news. The question always arises - would it be more efficient to leave such a person in the company, since he is productive, or to remove?

Example . The head of the department suppresses others, employees howl from him, the indicators are low. But his friend is the head of procurement for a key account, and he influences all deliveries. And all kickbacks to this company go through him. To remove it is scary, to leave it is destructive. What to do?

Lots of doubts, lots of "maybes" - to resolve them, you need stable data that is easy to understand, that is obvious, that is applicable in any situation, like a common denominator. A stable datum: a businessman is a person like everyone else. He has more responsibility, and he is more courageous than others. But he also feels and experiences.

A businessman is a person like everyone else.

Stable data: happiness is more important than money. It is happiness that matters, and it doesn't matter if you have money or not, as long as you are happy. This does not mean that in order to be happy, you need to have no money - a crazy idea. This means that money by itself does not bring happiness. Those who forget this simple truth are severely pierced. A stable datum: a businessman should not be a beggar, and a business without profit is not a business. A person can do anything - drive trams, work as a waiter or cleaner, and be happy at the same time. But a businessman started a business in order to have a high income. And if he does not achieve this goal, if he fails after failure on the way to it, he will be unhappy. This is the only thing that connects happiness with wealth.

Here is what L. Ron Hubbard, the management guru and the greatest philosopher of the 20th century, writes about it all.

« Happiness is the overcoming of conscious obstacles on the way to a conscious goal, and also, if we talk about a fleeting state, getting pleasure or anticipating it. "It is a scientific fact that the main goal, apparently, is known to a person before he reaches the age of two : talent, innate personality traits and the main goal form a single whole. ... It is found that whenever a person follows this pattern in his later life, he succeeds.

« Calculation- This is an irrational assessment and postulate, according to which a person must be in a certain state in order to succeed. He is always irrational. It usually contradicts the main goal. ... Not a single irrational calculation is consistent with the existing skills and abilities. “Calculation”, which is consistent with skills and abilities, this is the main goal.”

« primary goal- this is a goal for life that exists in a person from birth. It is inextricably linked with the individuality of a person.

What follows from this?

Be rich and happy

If you want to be a businessman, you must choose the direction of business, which lies in the same plane with your most striking abilities and inclinations. And make money there. To do this, you must be able to earn money in principle, but it's just a matter of qualifications. And also you must know your main purpose.

You must choose the line of business that lies on the same plane as your brightest abilities and inclinations.

There are very vivid examples of how people did this - and found real happiness. One of them is Guy Laliberte. This is a man who made several billion dollars by being... a clown. Circus clown. Yes, of course, he also organized his own circus, and this circus has become the most famous in the world. At the same time, he does not hesitate to continue performing on his stage as a clown. But that's what the business is to become rich. That's the talent to become happy. Someone will say - I have no talent. This is not true. You just turned the wrong way a long time ago.

The business formula for happiness

Here is the formula for happiness for a businessman - to become rich, acting within the framework of his main goal. Not for any person, since not everyone has such a goal - to become rich.

I know people whose talents have nothing to do with trading, and yet they trade. I know those who are sick of production, and they are trying to produce. What for? Because the economy, families and environment scream in their ears - if you don't have a lot of money, you're nobody! And they make a mistake, copying the first person with money, and adopting his activities. Completely forgetting about their own inclinations and talents. And then they get bored.

Yes, a person can earn a lot of money. But, turning from his own path, he will no longer find happiness. Satisfaction - yes. But this is the life of an animal. Pleasure of the body. Some are so long and so far away from their goal and from their path that it is wild for them to think that you can earn money doing what you love. Let them ask Guy Laliberte about it. But not every clown becomes a billionaire, you say. But not everyone had a goal to be one, I retort. For someone happiness is being a clown. For some, a billionaire clown.

Not every clown becomes a billion erom, you say. But not everyone had a goal to be one, I retort.

The problem is that the vast majority of people are not able to honestly look at their goals and see what they see. And admit it to yourself. But when they take a step in that direction, as in our Executive Power Amplifier program, they often have tears in their eyes. For a man has seen his own path and knows for sure that it is his.

And I assure you, these are tears of happiness.

Any business starts with the aim of making a profit, because. this is essential to the survival and growth of the company. From the point of view of economic theory, the generation of cash flows (ie profit) should be considered as the main goal of any business unit.

The need for profit is determined by the need to cover production costs, as well as the expansion and development of the enterprise. Business survival in the absence of profit will simply be impossible.

Some economists believe that profit maximization should not be the overriding, dominant goal in a company's development strategy, because. this leads to over-exploitation not only of the labor force, but also of the consumers.

Other theorists, on the contrary, argue that profit should be the main goal of the company, since it is a monetary reward for the entrepreneur for the risks taken and, accordingly, a motivating factor for further growth and development.

Recently, among the largest businessmen, there has been a tendency to adhere to the views that business should, first of all, be socially responsible.

Improving the quality of life of people, society as a whole, environment, participation in solving acute social problems - this is the list of tasks facing socially responsible business.

One of the richest people Sir Richard Branson, a British businessman and author of the bestselling book Losing My Virginity, believes that at the heart of any enterprise there should be a fundamental idea to benefit others, and the profit will take care of itself. In his opinion, this is one of the.

AT modern world success is achieved by those companies that do not just offer the market a high-quality product or service, but demonstrate to potential consumers a sincere social responsibility.

However, profit is important to a business for a number of reasons.

  1. Profits are essential for the growth of a company. Profit acts as the main source of financing for the activities of the enterprise (purchase of raw materials, materials, equipment, payment of wages).
  2. Profits are essential for the survival of a company. In order to cover production and other expenses, the company must have a source of income. This becomes especially critical during economic downturns.
  3. Profit is necessary to meet the individual and social needs of the entrepreneur.
  4. Profit is the most important economic indicator of business success. The indicator of profitability of an enterprise acts as a litmus test for assessing the prospects, attractiveness and rationality of the functioning of a business unit. This estimated indicator is of particular importance when a company enters an IPO for stock market analysts, traders, and investors.

Opponents of profit maximization cite the following facts as arguments:

  1. This leads to the exploitation of workers and consumers. Companies in pursuit of increasing profits seek to reduce the expenditure side (employee salary) and increase revenue (aggressive advertising, aggressive methods of promoting and selling their products, attempts to manipulate the minds of consumers).
  2. This leads to an increase in social inequality, with the rich getting richer and the poor getting poorer.
  3. This leads to an increase in cases of corruption.
  4. This reduces the moral spirit of society and increases the degree of its materialism.

What do you think about this? All the same, the main goal of a business is to make a profit or, first of all, social responsibility? Share your opinions in the comments!

Under New Year Vasily set the main goals in business. From January 1, cover the market on all continents, use the money received to buy a controlling stake in Apple and withdraw the new kind horses with a horn on their foreheads. Vasily is not strong in goal setting, but he is not alone in this. We've rounded up the typical mistakes businessmen make when setting goals so you don't repeat them.

How not to set goals: the experience of large companies

Goals threaten the future

If you focus only on achieving short-term goals - for example, on a sales plan - there is a risk of leading the company to a dead end. This can be done in different ways:

postpone investment in development for the future;
suggest to the client that the transaction planned for the future take place now;
thoughtlessly investing in expensive promotion;
do not think over a long-term development strategy.

This was the case, for example, in IBM. In years when the company showed very slow growth, management continued to set plans to increase sales by 25-30%. Against the backdrop of frozen budgets for the development of IT projects, such goals could not inspire the team. After the disastrous 1993, when the company showed a loss of $ 8 billion, top management decided to completely abandon the profile of an IT company and focus on the provision of consulting services.

The inscription on the blackboard: "I will not fight the future"
Source: giphy.com

No one likes the goal

If the goal has a negative wording in the spirit of “reduce risks in sales”, “limit the number of smoke breaks”, or “punish for being late”, then it is hardly worth waiting for development.

Such attitudes entail a chain of prohibitions, which only clips the wings of employees: they will stop showing initiative (what if I mess up?). Goals must have positive expression, such as "Increase market share to 17% by 2020", this will give the company a vision to strive for.

If you analyze the business by different indicators, then it will be much easier to determine such a goal that charges everyone. To do this, it is better to contact professionals and order an audit of the company.

The goal is fabulous

Breaking away from reality is a common mistake businessmen make. So, at software company Siebel, management set the same revenue plan for all regional offices - $ 3.5 million per quarter. The population of the entrusted regions, the economic situation, the level of competition in the local market were not taken into account. As a result, managers in less profitable states were constantly fired.

Goals for the checkbox

“Goals for the month: keep sales at the level of the previous month and train a new employee in the sales department” - such goals cost nothing to achieve, because they are just a list of routine tasks. Goal-setting for the sake of goal-setting gives only a beautiful tick in a notebook, and it does not advance you to real results. So it’s better to set goals that you really need to make an effort to achieve.

Inconsistent Goals

Sometimes even your own negative experience does not teach you anything. An example of this is the media conglomerate AOL. In 1998, he purchased ICQ for $400 million, but the promising service did not live up to expectations, as a result, it was resold, but for $187 million. The experience of AOL's failure was not taken into account and bought the Bebo social network for $850 million. The BBC later called this deal one of the worst in the history of the Internet - two years later the company sold the service for just $10 million.

Unsuccessful deals forced the conglomerate to close other projects: Xdrive, AOL Pictures, BlueString, AOL Journal and AOL Hometown, as the company no longer had money left to maintain them.

There are goals, but no means

Perhaps the most illustrative example in our selection is the story of a promising project of the Russian Marussia sports car, which was never implemented. The creators planned to sell 10 thousand sports cars of this brand in 2014 - that is, the deadlines were set, the goal was specific, measurable, significant (Marussia was supposed to be an excellent quality sports car in vintage style).

CRM-system as a tool for setting goals

Setting goals for the entire company and individual employees and tracking their implementation will help not an archaic notebook, but specially designed programs. For example, with which you can:

  • set a goal and indicators of success for each employee (who has sales indicators, who has the number of calls and requests);
  • introduce a system of ratings and rewards: the most successful employees will be at the top of the overall rating, which will spur a healthy spirit of competition;
  • predict future profits and adjust plans based on this;
  • control the work of employees: who and how copes with the tasks. This is especially true if employees work remotely.

And let the CRM system not formulate goals for you, but with its help you will be able to control their achievement. Find out more about working with and on our website.

As experts advise, before starting your own business, you need to decide on its main goals. But in the process of activity, goals can change significantly. Then you have to correct them. So what are small business goals and why do they need to change?

We often come across such a concept as a business goal and do not always correctly understand its meaning. What we want in principle is not a specific goal at all. For example, "make a lot of money" or "be better than competitors" is not a business goal, but a simple desire. In addition, there are no specifics in such desires, because "a lot of money" and "better" concept is different for each person.

A business goal is a kind of point of the future, the achievement of which is a priority for the company's work. A business goal can have a time criterion (achieve something within a year), a qualitative criterion (do something in the best possible way) and a financial-numerical criterion (cover the market by a certain percentage, raise gross income to a certain indicator) . Do not forget that the goal must be achievable, otherwise it would be simply pointless to set such a goal before the campaign. Goals serve the mission, and the mission is some kind of process. So it turns out that the process is continuous, goals must be set, adjusted and achieved.

1. So, we define the goals of our small business.
As mentioned above, to begin with, let's define the mission. If your business is aimed at providing services, then the mission will be appropriate - for example, "receiving maximum earnings while delivering the highest quality service."

Now let's move on to goals. First, these may be goals of first importance:
- improve the level of service, through additional training of employees;
- reach a new level of service by attracting additional specialists;
- reach a certain level of earnings (for a young business, this level is set in accordance with income and expenditure documents, in other words, your small business should pay off, and not work at a loss);
- take their place in the market of such services (stably work within the same area).

If your company is engaged in trade, then things are a little different. The mission can be "getting the maximum income with the high popularity of the product." And here the goals may differ, depending on whether you produce something and just resell. Important goals for small businesses in the beginning of the journey are:
- improve the quality of products (or buy better products in the store);
- achieve the same optimal level of earnings (as in the business of providing services);
- also take your place in the market (that is, find regular customers who will buy exactly your products, in another case, buy goods only from your store).

2. Now let's get to the achievement.

Any enterprise requires considerable effort to achieve its goals, especially at the stage of its own development. Suddenly, new horizons open up before you. Consider this situation using the example of a small grocery store.

Your store is stable in a certain market segment. In the neighboring area, unexpectedly for everyone, your competitors are closing. This is where it is necessary to correct the goals set earlier, according to which you did not plan to expand the range of your own clients. But if expansion is not included in the goals, then a store located in another area can do this. Those. an unexpected opportunity forces you to adjust your goals, and instead of "achieve stability within one area" there is "achieve stability within one area and expand activities by capturing the territory of another." And this is just a small example of how small business goals can be adjusted.

They can also change terms, volumes and much more.
An important task of any leader is the ability not only to set goals correctly, but also on time, as well as to be able to correct them qualitatively. From correct setting goals, in principle, all the activities of the enterprise, whether it is large or small, and to what type of activity it would not apply. It is impossible to act productively without knowing the goals. And the achievement of one will undoubtedly push towards the achievement of another such goal.

As mentioned earlier, goals must not only be set and adjusted, but also achieved. This requires a professional approach and a whole series of mandatory actions, without which small businesses simply cannot achieve anything.

Must be present:
- quality personnel management;
- thoughtful motivational approach;
- stable control over the execution of tasks.
If the leaders take all these actions and the company will work under the motto "I see the goal - I see no obstacles", then all the goals set will be achieved, new ones will be set, the company will grow and develop on the way to a brighter future.