In order to be successful, the primary objectives of the business organisation may be seen as:
• To survive;
• To maintain growth and development; and
• To make a profit.

All three objectives are inextricably linked and it is a matter of debate whether the business survives and develops in order to provide a profit, or makes a profit by which it can survive and develop.

If we accept survival as the ultimate objective of the business, then this involves the need for a steady and continuous profit. Businesses must be prepared to accept the possibility of a reduction in short-term profitability in order to provide for future investments. The profit goal is achieved through the process of management and the combined efforts of members of the organisation. In times of economic recession the survival objective takes on particular importance, especially for small business.

Although the objective of profit maximisation is undoubtedly of great importance, it is not, by itself, a sufficient criterion for the effective management of a business. In practice, there are many other considerations and motivations which affect the desire for the greatest profit or maximum economic efficiency and the accompanying assumptions which underlie the economic theory of the firm.

The meaning of ‘profit maximisation’ is not, by itself, very clear. Consideration has to be given to the range and quality of an organisation’s products or services, to the costs of its operations and to environmental influences. Reducing attention to longer-term ‘investments’ such as quality and after-sales service, research and development, sales promotion, management development, satisfaction of staff and their employment conditions may increase profitability in the short term, but is likely to jeopardise future growth and development, and possibly even the ultimate survival of the organisation.

The search for the one, right objective is not only unlikely to be productive, but is certain to harm and misdirect the business enterprise.

To emphasise only profit, for instance, misdirects entrepreneurs to the point where they may endanger the survival of the business. To obtain profit today a small business owner tends to undermine the future. To effectively run a business is to balance a variety of needs and goals. The very nature of business enterprise requires multiple objectives which are needed in every area where performance and results directly and vitally affect the survival and prosperity of the business.

There are eight key areas in which objectives should be set in terms of performance and results:

1. Market standing- for example: share of market standing; range of products/services and markets; distribution; pricing; customer loyalty and satisfaction.

2. Innovation- for example: innovations to reach marketing goals; developments arising from technological advancements; new processes and improvements in all major areas of organisational activity.

3. Productivity- for example: optimum use of resources; use of techniques such as operational research to help decide alternative courses of action; the ratio of ‘contributed valued’ to total revenue.

4. Physical and financial resources- for example: physical facilities such as plant, machines, offices and replacement of facilities; supply of capital and budgeting; planning for the money needed; provision of supplies.

5. Profitability- for example: profitability forecasts and anticipated timescales; capital investment policy; yardsticks for measurement of profitability.

6. Manager performance and development- for example: the direction of business owners and setting up their jobs; the structure of management; the development of future managers.

7. Worker performance and attitude- for example: union relations; the organisation of work; employee relations.

8. Public responsibility- for example: demands made upon the organisation, such as by law or public opinion; responsibilities to society and the public interest.

As a small business owner, choosing the suitable objective could make or break your organisation. Marketing trade-offs from the start is a must. A new business, shouldn't think about making profit, but instead should think about surviving for the next 3 years. Once you pass that milestone, maintaining grow and development are the next milestones that would eventually lead your business to making profits.