1.2 Business Goals

• The meaning of a business goal
• The importance of goal setting in business
• Factors to consider when setting business goals
• Steps in setting business goals
• Short-term and long-term goals
• SMART goals

• analyse the importance of goal setting in business
• examine the factors to consider when setting goals for a business
• describe the steps followed when setting business goals
• formulate SMART short-term and long-term goals for a business
• appreciate the need for setting goals in business

“Why is goal setting important in business?”

“What are the factors considered when setting business goals?”

The titles are open to everyone. Reading a lesson needs an account — sign in or create one.

1. The importance of goal setting, and the factors to consider
   40 min · 1 practice tasks · quiz
   What a business goal is, why setting goals matters, and the factors a business must weigh before setting them.
2. The steps in setting goals, and SMART goals
   40 min · 1 practice tasks · quiz
   The steps a business follows to set goals, the difference between short-term and long-term goals, and how to write a goal that is SMART.
3. What a business goal is
   40 min · 1 practice tasks · quiz
   A business goal is a desired result with a period attached, not a wish, a vision statement, or a daily task.
4. Profit as a business goal
   40 min · 1 practice tasks · quiz
   Profit is sales minus costs; Kenyan MSMEs set profit goals so the owner can live, restock and stay open.
5. Survival as a business goal
   40 min · 1 practice tasks · quiz
   Survival means staying open: enough cash to pay rent, stock and licences before growth talk begins.
6. Growth as a business goal
   40 min · 1 practice tasks · quiz
   Growth is becoming larger or stronger - more sales, stock, people or sites - after survival and profit can fund it.
7. Social goals of a business
   40 min · 1 practice tasks · quiz
   Social goals serve people and place - jobs, fair dealing, a cleaner site - alongside profit, not instead of it.
8. Balancing profit, survival, growth and social goals
   40 min · 1 practice tasks · quiz
   The four kinds of goal pull on the same limited cash; a good set names the order and the trade-off.
9. Resources and customers when setting goals
   40 min · 1 practice tasks · quiz
   A goal that ignores what the business has, and who will buy, is a wish - the two factors every MSME must weigh first.
10. Law, the economy and competition in goal setting
    40 min · 1 practice tasks · quiz
    Licences, taxes, inflation, interest and rivals sit outside the stall - goals that ignore them fail.
11. Short-term goals for Kenyan MSMEs
    40 min · 1 practice tasks · quiz
    Short-term goals sit inside about a year and are the rungs a kiosk, farm or boda business can climb this season.
12. Long-term goals and the steps that reach them
    40 min · 1 practice tasks · quiz
    Long-term goals point beyond a year; they only work when a chain of short-term goals funds them.
13. Formulating SMART goals for a local MSME
    40 min · 1 practice tasks · quiz
    Write a linked set of SMART short-term and long-term goals for a real Kenyan micro business, then say why the set is worth having.