What is the importance of having business goals?


Quick Answer

Creating goals for a business ensures a focus on profitability, motivates employees and sets a basis for monitoring and evaluation. Goals are also important for employees' performance evaluations.

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Full Answer

A business creates goals to help in charting a path to profitability and growth. This focus shows employees the organization's priorities, enabling them to create work plans and deadlines. Employees know what to focus on, thus prioritizing tasks and saving valuable business time. Goals provide measurable ways of creating sales strategies and ways of assigning tasks to team members.

Goals are critical because investors are able to understand long- and short-term targets. These goals help a business benchmark and formulate ways to achieve those targets. Specific, measurable, attainable, relevant and timely goals are essential for a business to maintain satisfied customers and employees.

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