TLE 5 - ENTREPRNEURSHIP

Reporter: Karen A. Castor

LESSON OBJECTIVES:
AT THE END OF THE DISCUSSION THE STUDENTS ARE ABLE TO:
• DEFINE THE GOALS, VISSION, MISSION, OBJECTIVE AND PERFOR-MANCE TARGET OF THE BUSINESS
PLAN
• VALUE THE IMPORTANCE OF A BUSINESS GOALS, VISION, MISSION AND OBJECTIVES
• CITE THE PROPO-NENTS OF THE BUSINESS
• CONSTRUCT THEIR OWN VISSION, MISSION AND OBJECTIVES IN MAKING A BUSINESS PLAN

CONTENTS OF A BUSINESS PLAN:

 THE BUSINESS GOALS: VISION, MISSION, OBJECTIVES AND PERFORMANCE TARGETS
 THE BUSINESS PROPONENTS

THE BUSINESS GOALS: VISION, MISSION, OBJECTIVES AND PERFORMANCE TARGETS

 What Are Business Goals?
Business goals are the outcomes an organization aims to achieve. They can be broad and long term or specific and
short term. Business leaders set goals in order to motivate teams, measure progress, and improve performance.

COMMON FRAMEWORKS FOR WRITING BUSINESS GOALS

Goal-setting frameworks can help you get the most out of your business goals. Learning about these goal-setting
tools can help you choose the right one for your company.
Here are the common frameworks for writing business goals with examples:
 SMART: SMART goals are specific, measurable, achievable, relevant, and time-bound.
 Specific – The goal or objective should be clear, concise, and well-defined.
 Measurable – The goal or objective should be quantifiable or verifiable.
 Achievable – The goal or objective should be realistic and attainable.
 Relevant – The goal or objective should be aligned with the company’s vision, mission, and values.
 Time-bound – The goal or objective should have a deadline or timeframe
Example SMART Goal: We will increase the revenue from our online store by 5 percent in three months by increasing
our sign-up discount from 25 to 30 percent.
 OKR: Another popular approach is to set OKRs, or objectives and key results. An OKR is a goal-setting technique
that links the company’s objectives with measurable outcomes.
Example Objective: We aim to increase the sales revenue of our online store.
Example Key Result: Make $200,000 in sales revenue from the online store in June.
 MBO: MBO, or management by objectives, is a collaborative goal-setting framework and management technique.
Example MBO: This quarter, we aim to decrease patient waiting times by 30 percent.
 BHAG: A BHAG, or a big hairy audacious goal, is an ambitious, possibly unattainable goal. A BHAG can energize
the team by giving everyone a shared purpose.
Example BHAG: We want to be the leading digital music service provider globally by 2030.
 KRA: KRAs, or key result areas, refer to a short list of goals that an individual, department, or organization can work
toward.
Example KRA: Increase high-quality sales leads per sales representative.

TYPES OF BUSINESS GOALS

A business goal is any goal that helps move an organization toward a desired result. There are many types of business
goals, including process goals, development goals, innovation goals, and profitability goals.
Here are some common types of business goals:
 Growth: A growth goal is a goal relating to the size and scope of the company.
  Process: A process goal, also called a day-to-day goal or an efficiency goal, is a goal to improve the everyday
effectiveness of a team or company.
 Problem-Solving: Problem-solving goals address a specific challenge.
 Development: A development goal, also called an educational goal, is a goal to develop new skills or expertise,
either for your team or for yourself.
 Innovation: An innovation goal is a goal to create new or more reliable products or services.
 Profitability: A profitability goal, also called a financial goal, is any goal to improve the financial prospects of a
company.
 Sustainability: A sustainability goal is a goal to either decrease your company’s negative impact on the environment
or actively improve the environment through specific initiatives.
 Marketing: A marketing goal, also called a brand goal, is a goal to increase a company’s influence and brand
awareness in the market.
 Customer Relations: A customer relations goal is a goal to improve customer satisfaction with and trust in your
product or services.
 Company Culture: A company culture goal, also called a social goal, is a goal to improve the work environment of
your company.

WHY YOU NEED BUSINESS GOALS

Every business needs to set clear goals in order to succeed. Business goals provide direction, encourage focus,
improve morale, and spur growth.
Here are some benefits you can expect from setting business goals:
 More Clarity
 Increased Focus
 Faster Growth
 Improved Morale
 More Accountability
 Better Decision-Making

CREATE A BUSINESS VISION

A business vision is your goal for what your business will be in the future. It will align with your business goals and
aspirations.

BUSINESS VISION STATEMENTS

The purpose of a business vision statement is to:
 define what the business does and why it is important
 inspire and create a sense of optimism about the business for the future.
Consider the following when creating your business vision statement:
1. The business why
2. The business what
The business vision should be the starting point for business planning. The vision outlines the goals and aspirations for
your business.

EXAMPLES OF BUSINESS VISION STATEMENTS

Large companies often have grand vision statements linked to large-scale global goals. But businesses of all sizes
can benefit from a business vision statement.
Some examples of vision statements from global companies and small businesses with local goals are:
 'To accelerate the world's transition to sustainable energy' (Tesla)
 'There will be a personal computer on every desk running Microsoft software.' (Microsoft's original vision statement)
 'To build a community of coffee lovers in Rockhampton, by serving the best coffee at the best possible prices.'
(Local café)
 'Our salon will change the way you think about a haircut, and leave you glowing both inside and out.' (Local
hairdresser)
BUSINESS MISSION
A Business Mission is the main idea, the purpose and the drivers behind a company, which sends the company, it's
executives and employees along its way in a particular direction.
A company's mission is the plan for how it will achieve it's vision. Mission is a call to action.

MISSION STATEMENT
A mission statement defines the long-term goals of your business in three ways:
 What does your company do for its customers?
 What does your company do for its employees?
 What do you want from your business?

A MISSION STATEMENT MATTERS

Consider the following five points to make your business's mission statement powerful, meaningful, and effective:
1. Mission statements must be 'lived.'
2. Employees must understand it.
3. Mission statements should be displayed for employees.
4. You want your customers see it.
5. Include your mission statement in marketing materials.

MISSION STATEMENT EXAMPLES

Mission statements vary considerably from company to company. The following examples are the mission
statements of some of the trending companies as of 2022:
 Nike (NKE): "To bring inspiration and innovation to every athlete* in the world."1
 Walmart (WMT): "We save people money so they can live better."2
 Starbucks (SBUX): "With every cup, with every conversation, with every community - We nurture the limitless
possibilities of human connection."3
 Tesla (TSLA): "To accelerate the world's transition to sustainable energy."4

WHAT ARE BUSINESS OBJECTIVES?

Business objectives are a written explanation of your goals as a business. Business objectives usually have to do
with the most important operating factors of a company's success, such as revenue, operations, productivity and growth.
Business objective needs to be specific, measurable, attainable and time-based
Business objectives are sometimes sorted into two categories:
Strategic objectives - they are often referring to long-term goals that relate directly to the company's mission
statement and drive large-scale organizational change.
Operational objectives - they are probably referring to shorter-term goals that might support a company's strategic
objectives.

WHY ARE BUSINESS OBJECTIVES IMPORTANT?

 Increase revenue
 Recruit and retain high-quality employees
 Enhance customer satisfaction
 Improve company culture
 Maximize workplace safety
 Develop leadership
 Expand productivity
 Increase product quality
 Encourage innovation

HOW TO WRITE A BUSINESS OBJECTIVE

 You can maximize the value of business objectives by thinking strategically about the following steps:
1. Brainstorm
2. Crowdsource
3. Organize
4. Choose your wording
5. Reflect

EXAMPLE BUSINESS OBJECTIVES

Here are some examples of business objectives that can help you shape your own:
Example 1
Our company will prioritize employee training to minimize errors and maximize productivity. We will assess
employee performance using standard metrics at monthly, yearly and five-year intervals.
Example 2
Our business will implement a new communication system by the end of the year, using a proprietary messaging
system developed by our engineering team. We will know this communication system is successful if we can
increase our customer interactions by 25%.

PERFORMANCE TARGETS
Performance targets, commonly known as key performance indicators or KPIs, are an essential element of
any business plan.
KPIs are measures of the key drivers in your business and should link to those business levers that can be pulled to
deliver an impact on business performance.
It is important that these targets are formulated in a way that is understood and will resonate with your team to
provide the motivation to deliver the desired outcomes.

THE BUSINESS PROPONENTS

 The third section of the business plan contains information about the business proponents or stakeholders.
 Proponents: a person who puts forward a proposition or proposal

FOUR TYPES OF STAKEHOLDERS

1. Resource mobilizers and financial backers

2. Technology providers and applicators
3. Governance and top management
4. Operating and support team
 If the business plan readers are the resource providers, then they will want to know who else are on the board to
share the burden of raising money to see the whole thing through.
 If the business plan readers are the technology providers, they will want to know if there will be sufficient funds
to pay for the technology.
 If the business plan readers are the governance and top management team, ten they will want to know what to
know what strategies and performance indicators are being proposed.
 If the business plan readers are the implementing, operating, and support teams, they will want to know what
programs, activities, tasks, and resources would be in place.

EVALUATION
1. These are the outcomes an organization aims to achieve. What are these?
a. Business Goals
b. business Vision
c. Performance Targets
2. What does Smart stands for:
a. Special, manageable, ability, responsible, timeless
 b. Sustain, meaningful, actualization, respect, tangible
c. Specific, measurable, achievable, relevant, and time-bound
3. Which of the following is not a goal-setting framework?
a. OKR
b. ABM
c. MBO
4. What are business vision?
a. It is the main idea, the purpose and the drivers behind a company, which sends the company, it's
executives and employees along its way in a particular direction.
b. It is your goal for what your business will be in the future.
c. It is a written explanation of your goals as a business.
5. What is the purpose of a business vision statement?
a. Define what the business does and why it is important
b. Set goals in order to motivate teams, measure progress, and improve performance
c. Setting a product adoption rate for a new product within a specific period of time
6. Business objectives are sometimes sorted into two categories. What are these?
a. Process goal and growth goal
b. Organize and crowdsource
c. Strategic objectives and operational objectives
7. Why are business objectives important?
a. Improve performance
b. Develop a plan
c. Increase revenue
8. What are performance targets?
a. A big hairy audacious goal is an ambitious, possibly unattainable goal.
b. Key performance indicators are measures of the key drivers in your business and should link to those
business levers that can be pulled to deliver an impact on business performance.
c. Management by objectives, is a collaborative goal-setting framework and management technique.
9. What are business proponents?
a. A person who puts forward a proposition or proposal
b. Someone who starts or owns a business.
c. One person who is in control of the operational and monetary aspects of a business.
10. What are the four types of stakeholders?
a. Resource mobilizers and financial backers, Technology providers and applicators, Governance and top management,
Operating and support team
b. Sole proprietorship, Partnership, Private corporation, Cooperative
c. Small Business Entrepreneurship, Scalable Start-up Entrepreneurship, Social Entrepreneurship and Large Company
Entrepreneurship
Answer Key:
1. A
2. C
3. B
4. B
5. A
6. C
7. C
8. B
9. A
10. A