* OBJECTIV.TXT

                              OBJECTIVES

    * Where you want to go, What you want to be. . .
    * What do you want for yourselves (personally and financially) 5
    years from now?

The primary objectives of our organization are to:

A
B
C

    * What you will develop, What you will achieve.
    * One dominant driving force:
          Product/service offered
          Satisfying a market need
          Manufacturing
          Profit & income
          Technology
          Client / customer base
    * Illustrate that you have planned for investors to receive their
    return on investment -- go public in 5 years, be acquired in 4
    years, etc.

BUSINESS GOALS
                         Profits
         Products                      Customers
         Quality                       People
         Growth                        Management
         Fields of Interest            Community

    * This is an example of a list of business priorities

Compared to past performance of XXX (product/service name, type) in the
XXX industry we intend to

    * Match your performance expectations to industry realities and/or
    explain how and why your operation will be different.

RATIONALE

Based on our experience with XXX, we feel that

    * Show how your company will fit you and your industry.
    * Discuss objectives relative to common practices and procedures in
    your industry.

XXX of our managers come from environments where they experienced XXX
(managing a large organization, a rapid growth high-tech development
team) and XXX

    * Relate previous track record of managers to demonstrate
    feasibility of actually achieving your objectives given the
    experience of the people involved.

RETURN ON INVESTMENT

Based on a XXX% market share for our XXX product/service by 19XX, we
estimate our return on investment to be XXX%

    * How much and by when!
    * Investors (and you too) want to know how they will generate a
    return of 35-60+%, and how much the company will be worth in XXX
    years
    * Use the following chart to summarize the basic dollar objectives.

FINANCIAL OBJECTIVES

  Item                  Last Year        This Year        Next Year
                        $000   % Sales   $000   % Sales   $000   % Sales

  Total Category Sales
  Sales
       $ Volume
       Unit Volume
       % Increase/Decrease
  Share of Market
  Gross Profit
       Manufacturing
       Fully Burdened
  Marketing Expenses
       Advertising
       Sales Promotion
       Trade Allowances
       Other

POSITION FOR GROWTH

    1. Understand customers, competition and industry
    2. Product/service/channel/customer congruency
    3. Product/service life cycles
    4. Growth by fields of interest
    5. Balance people/management/business goals
    6. Transition from single-point to distributed management
    7. Operate at 50 vs. 15 employees
    8. Develop values and culture
    9. Hire the best people

    * This is a list of activities/priorities to consider for planning
    future growth.

Other objectives we have set for ourselves include XXX

We expect to replace (competitive/existing products or services) by XXX%
by 19XX

We plan to add XXX (retailers, distributors, service centers) per
month/year and we will have a total of XXX (retailers, distributors) by
19XX.

    * Make sure they fit the criteria set previously.
    NOTE:  Objectives should be:
    Appropriate... they "ring true" for what you expect to be doing.
    Acceptable... within industry and political environments.
    Feasible... Achievable given your resources.
    Flexible... permit appropriate responses to contingencies.
    Measurable over time... number of years.
    Motivating... aggressive, yet achievable.
    Understandable... makes sense to others not completely familiar
    with your concept.

    * Now list the other objectives.  (e.g., awareness, distribution,
    competitive preemption, etc.)  Make sure they fit the criteria set
    previously.

    * Test your methodology in setting objectives. Make sure they are...
       Zero-based, not extrapolated from past trends or current budgets.
       Achievable given your resources.
       Consistent with the data in the strategic planning document.
