Why do businesses need aims and objectives to be succesful.?

Question

we would appreciate detailed answers to fully understand the concept. thanks so much ^^

Answer 1

Try and imagine living without aims and objectives.

You don't care if you have any money, your fridge is empty, your car has died because you didn't service it, you lost your job because you didn't bother to go in, your partner has walked out and you are about to be evicted...not a pretty picture is it?

A business needs to have a reason to exist, normally it is to make a profitable return on the money and effort invested in it.

If you open a flower shop because you like flowers, but don't know where to buy them wholesale, how to sell them at a profit, how to advertise your shop, what hours you can legally open and how much local taxes you will have to pay you will soon go out of business.

That's why banks being asked to invest in startup businesses require a Business Model with projected costs and forecast profits - none of which guarantees you WILL succeed, more businesses fail in the first 18 months than at any other time.