COMMERCIAL OBJECTIVE

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The business objectives of a new company focus on setting specific goals for its sales and commercial activity in order to achieve sustained success and growth in the market. 

The following are some common business objectives for a new company

1. Increase sales: This objective is critical to the success of any business and can be achieved through a variety of strategies such as acquiring new customers, retaining existing customers, launching new products or services, and expanding into new markets.
2. Improve profitability: This objective seeks to maximise revenues and minimise costs to achieve greater profitability. To achieve this, it is necessary to increase sales, reduce costs, improve efficiency in production and the supply of products or services.
3. Increasing the participation of market (see+ TIP market share): This objective seeks to increase the company's market share in the sector in which it competes. It can be achieved by implementing effective marketing and advertising strategies, differentiating products or services, improving the quality of customer service and developing new business opportunities.
4. Improve the customer satisfaction (ver+): This objective seeks to improve customer satisfaction by increasing customer loyalty and willingness to repeat purchase or recommend the company's products or services. This can be achieved by implementing customer service strategies, improving the quality of products or services and paying attention to their needs and suggestions.
5. Developing a strong brand image (see+): This objective seeks to develop a strong and recognised brand image in the market, which will enable the company to stand out from the competition and attract new customers. To achieve this, it is necessary to develop a coherent and consistent corporate identity, and to carry out effective marketing and advertising strategies.
6. Attract new customers.
7. Promotions or discounts for traditional customers.
8. Improve conversion.
9. Raise awareness of our brand.
10. Sell more units.
11. Loyalty.
12. Improve customer management.
13. New product launches.
14. Generate traffic at a point of sale.
15. Reduce operational costs.
16. Selling product families.
17. Others.

In short, a new company's business objectives focus on setting specific goals for its sales and marketing activity. Some common objectives include increasing sales, improving profitability, increasing market share, improving customer satisfaction and developing a strong brand image. It is important to set realistic and measurable objectives, and to implement effective strategies to achieve them and ensure the sustained success and growth of the company.

What is the purpose of setting business objectives?

The sales target of a venture aims to increase sales in a specific time frame, as well as to guide all commercial and marketing actions. The commercial objectives are indispensable for the elaboration of the marketing plan, which is part of the business plan. These depend on the type of product or service, the market or the stage of our venture. For the definition of these the SMART methodology (see+) is an excellent guide, so that the company's efforts will be: Specific (S) Measurable (M) Achievable (A) Achievable (R) and Time (T) determined. Measuring the progress of the objectives allows us to improve or demand a little more of ourselves than we set out.

When setting them, we always have doubts about whether they are appropriate and whether they are achievable. In this case, the recommendation is to outline the desired goal, then make sub-divisions of small goals that are accompanied by concrete business actions and set out in a work plan. The daily target will allow the monthly target to be met, and so on. Holding constructive meetings with the accompanying team and resolving any deviations allows us to act quickly and proactively. It is important to be consistent and disciplined, as we may not be motivated all the time.

Practical examples of business objectives in well-known start-ups

Here are some practical examples of business objectives in well-known start-ups:

1. Uber: One of Uber's business objectives is to increase its market share in the passenger transportation sector by expanding into new markets and acquiring new customers. Another objective is to improve customer satisfaction by improving service quality, implementing competitive fares and personalised customer service.
2. Airbnb: One of Airbnb's business objectives is to increase its market share in the accommodation sector by expanding its accommodation offering in different tourist destinations around the world. Another objective is to improve profitability by reducing costs and improving efficiency in the management of accommodation.
3. Warby Parker: One of Warby Parker's business objectives is to develop a strong brand image in the designer eyewear market by implementing effective marketing strategies and differentiating its products through quality and design. Another objective is to improve customer satisfaction by providing personalised service and meeting customer needs and preferences.
4. Casper: One of Casper's business objectives is to increase its market share in the mattress and bedding sector by expanding into new markets and acquiring new customers. Another objective is to improve profitability by reducing costs and improving efficiency in the production and supply of its products.

In short, well-known start-ups such as Uber, Airbnb, Warby Parker and Casper, have specific business objectives that seek to improve their market position, increase industry share, improve customer satisfaction and develop a strong brand image. These objectives are achieved through a variety of strategies, such as expanding into new markets, acquiring new customers, improving profitability and implementing effective marketing and customer service strategies.

Practical advice to an entrepreneur on how to set his business objectives

Here are some practical tips for an entrepreneur to set business objectives:

1. Define objectives SMART (see+): It is important to set goals that are specific, measurable, achievable, relevant and time-bound (SMART). This will allow the entrepreneur to have a clear idea of what they want to achieve and how to measure their success.
2. Conduct a market analysis: Before setting business objectives, it is important to conduct a market analysis to understand customer needs and preferences, industry trends and competition. This will allow you to set realistic objectives that are adapted to the market situation.
3. Prioritisation: It is important to prioritise business objectives and focus on those that are most important to the success of the business. This will allow the entrepreneur to concentrate efforts on the objectives that have the greatest impact on the growth and profitability of the business.
4. Establish a action plan (ver+): Once business objectives have been defined, it is important to establish a detailed action plan to achieve them. This plan should include the specific strategies and actions to be undertaken, the timelines and the resources required.
5. Monitor progress: It is important to monitor progress in achieving business objectives and make adjustments if necessary. This will allow the entrepreneur to have a clear picture of how the strategies and actions set are working and to take steps to improve their performance.
6. Be flexible: Business objectives may change as the business and the market evolve. It is important that the entrepreneur is flexible and willing to adapt to changes in the market situation and the needs of the business.

In summary, setting business objectives is critical to the success of any business. To achieve this, it is important to define SMART objectives, conduct a market analysis, set priorities, establish an action plan, monitor progress and be flexible. With these tips, the entrepreneur will be able to set effective goals that will enable sustained business growth and profitability.

Case study for an entrepreneur to set business objectives

Suppose an entrepreneur wants to set business objectives for his new business selling natural beauty products.

The following are the steps you might take to establish these objectives:

1. Define SMART objectives: The entrepreneur could set SMART objectives, such as increasing sales by 20% in the next six months, gaining 10% market share in the next year, increasing customer loyalty by 30% in the next nine months, and improving profitability by 15% in the next twelve months.
2. Conduct a market analysis: The entrepreneur could conduct a market analysis to understand customer needs and preferences, industry trends and competition. In this way, he/she could identify opportunities and set realistic objectives adapted to the market situation.
3. Prioritisation: The entrepreneur could prioritise business objectives and focus on those that are most important for the success of the business. In this case, the most important objectives could be to increase sales and customer loyalty, as this would generate revenue and keep customers satisfied.
4. Establish a plan of action: The entrepreneur could establish a detailed action plan to achieve business objectives. For example, to increase sales, he could implement digital and offline marketing strategies, run special promotions, and expand product offerings. To improve customer loyalty, the entrepreneur could offer a loyalty programme, improve the quality of customer service and personalised attention.
5. Monitor progress: The entrepreneur could monitor progress in achieving business objectives and make adjustments if necessary. To do this, he/she could establish key performance indicators (KPIs) and constantly monitor their evolution.
6. Be flexible: The entrepreneur must be flexible and willing to adapt to changes in the market situation and the needs of the business. If business objectives are not being met, he/she should be willing to make adjustments in strategies and actions to improve performance.

In a nutshell, To set effective business objectives for a new venture, it is important to define SMART objectives, conduct a market analysis, set priorities, establish an action plan, monitor progress and be flexible. The case study presented shows how an entrepreneur could apply these steps to set business objectives for a company selling natural beauty products.