Most times, when people start up a business or even a career, the major goal they talk about is how to make a profit. But, is that all a business should be after? There should be more to a business goal than just profit.
Obviously, as a business owner or entrepreneur, your business won't survive if you don't make profits. However, focusing on only profit-making might not make your business the best it can ever be.
In order to fully harness your business, there are other things you also need to focus on.
For instance, recent research showed that CEOs who focus more on stakeholder's interest rather than profit attained greater workforce engagements and also attained higher financial results.
The study involved survey data gathered from 520 organizations in 17 countries. The study tested the hypothesis that when CEOs focus mainly on profits, employees tend to develop a negative attitude towards the organization.
The employees tend to see the CEO as autocratic and more focused on the short term. They reportedly also showed less willingness to make sacrifices for the organization; thus, even corporate performance in poor.
On the contrary, when a CEO balances employees' concerns with that of customers while offering optimum service to the community at large (of course taking environmental impact into account), employees tend to see such CEO as a visionary boss.
Employees in this second scenario tend to be more willing to give in their best to improve corporate results.
What other goals are important to businesses?
If profit shouldn't be your business's sole focus, then, what other goals and objectives should you optimize your business for?
Sometimes even businesses that are highly profitable crash because they have failed to meet up with the competition or advance with the times.
Now, you see that profit-making strategy is only one out of the numerous other goals your business should go after. As a business owner, asides directly seeking ways of making money, you should also be interested in how to:
- Keep your customers coming back to you.
- Deal with competitors
- Satisfy and retain your employees
- Meet stakeholder expectations
- Manage risks and meet legal obligations
Your business should also focus on growth; otherwise, it may not last for long. Business growth entails that you serve your existing customers better and also expand your reach to other people.
You must have to offer products or services that are unique and stands out. Your products or services must appeal to people enough to make them want to patronize you.
You ought to be able to think up innovative ideas that will lead to business growth. When your business is growing, your profit margin would most likely grow alongside.
You can also grow your business into a successful one by prioritizing customer satisfaction and having great customer service.
If you don't treat your customers right, they are likely not to come back to patronise you, and it might not matter whether or not your products are of high quality.
No customer would want to put up with bad customer service; especially not when they have other options where they can spend their money.
Ensure that your customers are treated with respect, serve them well, and you would gain their trust and loyalty.
It doesn't end there; your loyal customers are also your gateway to getting more customers as they end up leaving good reviews for you and telling others about you.
Many business owners in the quest to make money out of their business forget this important aspect- treating their employees right.
Your employees should be happy working with you and not whining or complaining. When they complain, listen to their complaints, you'd be surprised that their complaints are valid.
In most cases, employee satisfaction equals customer satisfaction which would in turn yield business growth as a satisfied customer would tend to come back to buy your product and use your service.
A business goal should also include employee self-development. When you give room for your employees' personal and career growth, you are also helping your business grow as they are likely to add more value to your business.
Provide your employees with the right tools needed to do their jobs, and in that way, they work more efficiently. Their performance will improve, and so will your business improve.
Also, remember to make your staff feel like they are important and valued. Speake with them with respect and when they feel valued, you will see them go out of their way to ensure the growth of the business.
Improving product and services
When you buy a unique and outstanding product, what is the next thing you do? You would most likely tell your friends about the product or the outstanding service you received.
Just the way people tend to tell others about a bad customer experience, in likewise manner, they will share news about an amazing product they found or outstanding service they experienced.
If you want to earn more, then you should invest more time, effort, and even money to ensure that your products and services are topnotch. Your customers would keep coming back, and they will tell others about you.
Meeting the expectations of stakeholders
Other business stakeholders asides your customers, and employees include business owners, shareholders and even suppliers. Wikipedia defined a stakeholder as "a member of groups without whose support the organisation would cease to exist".
It means that your business could cease to exist without the support of the stakeholders. You should make conscious efforts to see to it that you do not repeatedly lose your customers, investors, employees or suppliers.
Stakeholders would not want their stakes in the company to be at risk. They would also expect that the business grows with stability and increases in value.
Your employees would want you to provide a safe working condition with fair pay for them while suppliers will want to work with customers who pay up on time and don't give them issues.
As a business owner, you should create different strategies to ensure that everyone is treated with fairness and everyone is satisfied.
When there is a balance in your goal pursuit, it ultimately reflects in your business. You will find out that those set goals end up reflecting in your earnings as you end up maximizing profit.
Also, while drafting goals for your business, remember to set your goals to be SMART. SMART stands for Specific, Measurable, Attainable, Relevant and Time-based.