Lets talk about long term v short term business strategies. What are they, which one is best for my business and why should I care?
This article is going to explain long term and short term strategies and why you would use one or the other. Having a strategy is important I do not believe you need an elaborate business plan to succeed but you do need a strategy and direction or your business will fail. A strategy can be as simple as we are going to sell this product but if you make it we are going to capture customers data and sell this product your business will be much stronger and secure.
In business there are two strategies that you can implement for growth or profits. In a short term strategy you will look at increasing cash flow and making as much money in the shortest amount of time possible. A long term strategy is the opposite this is when you look to capture some information to profit from at a later date or invest in a stock that will see a big return after a long period of time.
As you can see from the descriptions both of these strategies are useful in their own ways. You could focus on one or the other for your business but I would suggest having both strategies in your business from the start. This does however depend on your businesses current financial position if you are running a start up you may want to focus on the short term to establish a cash flow then look into long term strategies. The problem with this is you will have no long term strategy and may be vulnerable to changes in the business environment. These changes can have a dramatic effect on a short term strategy and if you only have a short term strategy you may go out of business.
Having a long term strategy from the start is always best. For example capture your potential customers details by offering a free gift in exchange for their information. Once you have potential and existing customers information you can direct market to these customers over a long period of time. They may also buy in the short term which helps with cash flow.
The main point of this article is to make sure you focus on the long term as well as the short term with your business. This will make your business stronger although you may have to sacrifice some short term gains, having secure long term strategy with keep your business alive for longer. Be future orientated in your business but also keep an eye on the current financial position of your business.
Plan your strategy from the start and even if you do not go in that direction you will have an idea of how to steer the business to achieve what you set out to do. Having a balance between the two is the best way this helps you satisfy your cash flow needs whilst protecting your business from future changes. I hope this helps you understand long term v short term and helps you plan a strategy for your business.