What is the difference?
At the time of preparing a business plan, it is not uncommon to find business people being confused with the number of business terms used. At first glance, the business terminology used appears to be the same. But, there is a difference.
This article is prepared to help you quickly and easily understand the difference between the common types of business terminology used in the business planning process such as:
- Vision Statement
- Mission Statement;
- Business Goals;
- Business Objectives;
- Business Strategy;
- Strategic Business Objectives; and
- Business Tactics.
What Is A Vision Statement?
To put it simply, your vision statement refers to where you want your business or organisation to be in the future. It will require you to be able to anticipate future events and developments with imagination and wisdom.
What Is A Mission Statement?
Your mission statement enables you to clearly answer the question, why was your business or organisation established? When preparing your mission statement, you will need to focus on the base and strategies that your business or organisation is built on.
Note: Your mission and vision statements are statements should give you the answers to:
- Who you are
- What do you value
- Where are you going And
- Where do you want to be in the future
What Are Business Goals?
Your business goals are a subset of your business’s or organisation’s vision. In a sense, they are creative dreams that when turned into objectives become a reality.
What Are Business Objectives?
Your business objectives are the results you hope to achieve and maintain as you run and grow your business or organisation. They are measurable and specific.
What Is A Business Strategy?
Your most effective business strategy should be to consider adopting an approach that will persuade your customers to buy your products or services. When developing your business’s or organisation’s business strategy, you will need to:
- Find a way to differentiate your business or organisation from your competitors; and
- Focus on the strengths of your business or organisation.
Note: A strategy is a how not a what.
What Are Strategic Business Objectives?
Strategic business objectives are the goals that are deemed to be most important to the current and future health of your business or organisation. To help in determining your business’s or organisation’s strategic business objectives, you should perform a thorough SWOT analysis of your business’s or organisation’s business practices.
Although you may consider your business or organisation to be unique, you will find that you share the same common strategic business objectives as other businesses or organisations, particularly in the areas of:
- Market share;
- Financial resources;
- Physical resources;
- Innovation; and
- Action planning.
What Are Business Tactics?
Your business tactics should be:
- The actions or tools your business or organisation takes to achieve its objectives.
- Associated to your business’s or organisation’s strategy (i.e. your tactics and strategies must work in tandem with one another).
Note: Tactics are what’s, not how’s.
Seek Expert and Professional Advice
If you require any further advice and assistance, you should take advantage of the professional advice and assistance from our “principal”, who is an expert business and management consultant, as well as a professionally qualified public accountant. In addition to holding an Economics degree, he has the designation and degree of the internationally recognised Institute of Public Accountants (IPA) and the Institute of Management Consultants (IMC).
Our expert business and management consultant is willing and able to:
- Offer sound practical and professional advice that really works (not just complex theories); and
- Help you in bouncing ideas off someone who is experienced in evaluating the different issues many business owners and key managers face when implementing their business plans.