A strategic objective is a useful tool for selling the business and planning for investors, bankers, or getting a loan.
It is also one of the first steps to understanding the expenses involved in running the business effectively, such as hiring staff, purchasing tools, and paying bills.
Additionally, it can help in determining the expected revenue of the business and provide a summary of everything.
While this data may not be 100% accurate and is subject to change, it provides a perspective on what is needed for the business.
This information is not only important for the business owner but also for anyone who wants to know more about the business.
Therefore, it is important to have a clear understanding of the strategic objective.
To create a business plan, the following questions should be answered:
- What is the projected size of the company?
- How much is the desired valuation for the company?
- Is the opportunity worth pursuing?
- Who is the target customer?
- What is the customer avatar?
- How many potential customers are there?
- What is the geographic location of the business?
- When will the first franchise be completed with all the above and below points?
It is recommended to keep expenses low in the beginning and for the business owner to take on multiple roles such as the entrepreneur, manager, and technician.
Once the business gains traction, investment can be sought to expand the team.