You can also listen to this from our Uncover Wealth Radio with Annette Ferguson.
In the world of business, you need to think ahead. You need to figure out what exactly you’ve set out to do and devise a detailed strategy on how to get there. For many, the objective of putting up a business is to generate income. It could be something small like a side hustle or a grand and ambitious dream. Whatever the case may be, one thing is for sure: Every business desires profit.
Still, generating substantial income to support your entire operation is easier said than done. A lot of work is involved here, from production, marketing to financial accounting. If you think the big shots who are living “the perfect life” had a carefree time getting to where they are now, you are gravely mistaken. Going into business is a satisfying combination of heaven and hell. It’s greatly rewarding, but the work is also terribly taxing.
Now, if you think that this is still your place in the world and it’s where you want to be in spite of whatever hardships you need to face, then we’ll help you out
Every Business Starts With A Good Strategy
So you plan to set up a new business. Or maybe, you already have everything you need to get started, but you’re still confused as to which direction you should go from this point onwards. Well, the very first thing that you need to do before diving into anything is to develop a winning strategy.
There are many things you need to strategize about when you’re just starting out. You have to carefully plan the different functional areas of your business, after all.
- What is the most effective way to produce/procure your saleable goods?
- How will your entire selling process play out?
- Who will be in charge of managing operations, marketing, and financial accounts?
- How can you run your business in a way that will generate the most profits?
These are just a few of the many questions you need to ask yourself and your team when you’re in the process of developing your business strategy.
There are two types of business strategies you can develop: Short Term and Long Term Strategy.
Should You Go For A Short Term Or Long Term Strategy?
You go for both. If you want your business to be a success, covering as much ground as you can is a must. You have to be in the present, but you also have to prepare for the future. This can easily be achieved by establishing both short-term and long term goals.
But before we get into that, let us first define what short and long term strategies are. And which of them is better.
First off is short term strategy. When you say short term strategy, you are referring to a strategic plan that is expected to show results over a short period of time. An example of which is planning for an Anniversary sale. Establishing a concrete plan to achieve a target result (e.g., sales quota) for the Anniversary Sale is something you’d consider a short term strategy.
On the other hand, long term strategies refer to carefully laid out plans that span through a more prolonged span of time. A single long term strategy may even span through a decade should the objective be difficult to attain. “Becoming a recognized global brand” is one example of a long term strategic goal.
Going back, what do we mean when we say you need to utilize both types of strategies? It means that you have to implement short term strategies to meet long term goals. Think of short term strategies as building blocks and a stepping-stone that make up a long term strategy.
To start, you need to layout your ultimate goals. What is your vision and mission for the company? Once you have your BIG goals set, you can then devise a long term strategy to achieve it.
Out of the big goals, you then start identifying smaller objectives. You cut the big, overwhelming piece to doable chunks so that you know exactly what to do to get to where you wanted to be. For smaller objectives, you devise short term strategies to achieve them.
Wrap it Up!
When you understand how to utilize both types of strategies effectively, it doesn’t become a question of which of the two is better. You know that they’re both essential and contributes to the success of your business. What’s even more important is how you’re going to devise such strategies, whether short or long term, in a way that they can help you reach success faster.