Business objectives are the specific results you plan to reach and by when. In a micro business plan, they usually cover three areas: getting the business set up and registered, reaching sales and customer targets, and repaying any loan. Each objective should be specific, measurable, realistic for your size, and tied to a date. Five to eight objectives for the first year is enough.
Goals vs objectives
A goal is the broad thing you want: "to be the go-to water station in our barangay." An objective is a concrete step that proves you are getting there: "to have [number] households on weekly delivery by the end of month six." A business plan needs objectives. Readers can check them, and so can you.
Use the SMART test on each one: Specific (what exactly), Measurable (a number), Achievable (fits your puhunan and staff), Relevant (moves the business forward), and Time-bound (a date or month).
Setup and registration milestones
Your first objectives are usually about getting ready to open. These are easy to measure and show a lender you know the steps. A typical order for a sole proprietorship is below. The permit path tool shows the steps for your business type and city.
- Register the business nameRegister with DTI by [date]. See DTI business name registration.
- Get the barangay clearanceApply at the barangay hall by [date]. See barangay business clearance.
- Get the mayor's permitFile with the city or municipality by [date]. See mayor's permit.
- Register with BIRRegister and get your certificate of registration before your first sale. See BIR registration.
- Open for businessOpen to customers on [date], with books of accounts and invoices ready.
Sales, customer and money objectives
After setup, set objectives for the first year. Use the numbers from your financial plan so the sections agree. Good objective types for a micro business include monthly sales, number of regular customers, gross margin, months to break-even, and loan repayment. Do not set objectives you have no way to measure, like "customer satisfaction," unless you say how you will measure it.
Worked example: a water refilling station
Example: objectives for a water refilling station in a Laguna barangay. This illustration uses blanks for every target. Your own numbers come from your market analysis and financial plan.
- Complete DTI, barangay, mayor's permit and BIR registration, and complete any water testing the city health office asks for, by [month].
- Open with [number] households signed up for weekly delivery by the end of month one.
- Reach [number] gallons sold per week by the end of month three.
- Reach break-even monthly sales of ₱____ (your figure) by month [number].
- Make every loan payment of ₱____ on time for the first 12 months.
- Grow weekly delivery customers to [number] by the end of month twelve.
- Renew the mayor's permit on time in January. See business renewal.
Common mistakes
Most weak objectives fail the SMART test in one of a few ways. Watch for these:
- No number: "increase sales" instead of "reach ₱____ in monthly sales".
- No date, so nobody can tell if you hit it.
- Targets that do not match the financial plan.
- Too many objectives. A small business can track five to eight.
- Only sales objectives, with nothing on registration, repayment or customers.
- Targets copied from another business without checking your own demand.
Objectives checklist
- Write each objective with a number and a date
- Start with registration and opening milestones
- Copy sales and break-even targets from your financial plan
- Add one loan repayment objective if you are borrowing
- Include one customer or suki objective
- Keep the list to five to eight items
- Plan a monthly check against each objective
Questions people ask
- How many objectives should a small business plan have?
- Five to eight for the first year is enough for most micro businesses. More than that is hard to track while running the business day to day.
- Should objectives include registration steps?
- Yes, if you have not finished them. Registration milestones show a lender you know what is needed to operate legally, and they are easy to measure.
- What is a SMART objective?
- One that is specific, measurable, achievable, relevant and time-bound. "Have 50 households on weekly delivery by the end of June" is SMART. "Get more customers" is not.
- What if I miss an objective?
- Write down why and adjust the plan. A business plan is meant to be updated. Lenders prefer an honest update to a target that was never realistic.