To be successful in our small business we need an effective business plan. That plan should contain a set of clear objectives against which we can measure our progress. In this way, we can determine whether we are exceeding all our expectations, getting along OK or getting to the stage where we should think of doing something else.

What Do We Mean By Objectives

Before looking at the sort of objectives we might want to set, let's think about objectives in general. For an objective to be meaningful, it needs to be SMART. That means it should be Specific, Measurable, Achievable, Relevant and Time-related.

Specific: A statement of exactly what we want to achieve. For example 'to increase the number of customers of customers buying our services' or 'to increase the number of services that each customer purchases' are more specific than 'to increase our level of business'.

Measurable: This implies a quantitative target which allows us to know clearly whether it has been achieved or not. For example 'to add five new customers' or 'to develop three additional products' are measurable targets.

Achievable: Although objectives should stretch us, there is no point in setting ones that have no hope of being successful that's just demotivating and a waste of time. For example 'to increase profit by 500% in year one' is probably not going to be achievable (unless we've discovered the next 'big thing') whereas 'to increase profit by 100%' is probably achievable but difficult.

Relevant: It is important that the objective is meaningful. For example 'to spend 20 hours per week writing the website' is specific, measurable and achievable, but unless it is linked to an increase in business, it is an irrelevance.

Time-related: Each objective needs to have a time-frame against which is should be measured. For example 'to increase profit by 100%' without the addition of 'in year one' is meaningless. Sure, we can do it at some point, but if we don't have a milestone to work to, it could take 35 years and that's not a particularly stretching objective, is it?

As we go through our business plan, we'll look at examples of SMART and not-so-SMART objectives.

What Business Am I In?

If we don't know what our business is, then no-one else will know or care. So we start by clearly defining what it is we wish to do. 'I want to be a writer' is an aspiration. So is 'I want to work with children' or 'I want to be in the open air'.

To be

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