Business Objectives: Definition, Purpose & Types

Lesson Transcript
Instructor: Beth Hendricks

Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career.

Businesses set up different kinds of objectives to help them achieve their goals. Explore a definition of business objectives as well as an overview of the purposes and types of these objectives. Updated: 01/13/2022

What Are Your Objectives?

Every January 1st, Tom is eager for a fresh start and looks at his plans for the coming year. This year, Tom wants to get more involved in his community, lose weight, travel more, and earn a bigger raise at work. Some people call these resolutions, but Tom has chosen to call them objectives because he has set measurable and specific plans for achieving his desires.

Businesses function much in the same way. Business owners and managers set objectives they want to achieve in their business dealings over the coming year. Some of these objectives are business goals, while others are focused on the people that come in contact with the business and the society in which it operates.

Let's take a closer look at objectives in the world of business.

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  • 1:57 Types of Business Objectives
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Business Objectives Defined

A business objective, in short, is what a company wants to achieve throughout the year. Instead of focusing on what you're currently doing in your business, an objective is something you want to achieve going forward. Many times, business objectives are spelled out in a business plan and used as part of the strategic planning process of a company going forward. After all, without objectives, how do you know what to do to get there?

Business objectives function as a way for business owners to make plans, track their progress, and work toward a particular goal. The thing about objectives is that they're measurable, specific, and tactical. They aren't general statements like 'We want to be the most recognizable bookstore in the region.' Instead, they are focused, such as the objective, 'We want to open 10 new locations in the coming year.'

There are numerous types of objectives in the business world, ranging from sales and profit expectations to objectives surrounding staff and employees. Let's examine the major types of objectives a business should consider.

Types of Business Objectives

Among the objectives businesses must consider for their success are plans related to profit, people, and the world around them. Here's a closer look at a few popular objectives.

The economic objectives of a business could range from wanting to turn a profit to the stability and survival of the business itself. The economy of a business requires the business to be able to support itself and pay its bills, such as rent, utilities, and salaries, while turning a profit. This enables a business to grow and its leadership to prosper. Most business owners and even consumers would tell you that the primary objective for the establishment of a business is economic in nature. That means business owners are in business to make a profit. But a business owner who lists money as his or her only objective is unlikely to be successful overall.

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