Every organisation requires a strong plan to ensure its success and most business owners know that staying focused is vital to be able to deliver the long-term objectives.
However, this has been difficult for many small and medium-sized businesses to achieve in recent times, and short-term demands have risen to the top of the decision-making agenda. Is it the correct decision to continue this way or could it be time for business owners to re-think their priorities?
How can business owners construct a more durable business structure?
Take advantage of long-term and short-term planning techniques
One of the main ways that business owners can construct a more durable business structure and enhance its agility is by taking advantage of both long-term and short-term planning techniques. Whilst business owners should maintain a forward-looking plan in outline, whether a business can react to changes in the here and now is the true test of a business’ resilience, whilst remaining aligned with their strategic goals.
This does not negate the fact that long-term planning is important. The role of long-term planning is to present the framework and set goals, which will provide the foundations of the business. Short-term planning involves all the smaller steps that have to be taken to achieve those long-term objectives that have been outlined.
Funding
One example of a long-term objective might be funding. A project whose continued growth plan cannot succeed without a cash injection has a several options available in terms of how and when the funds are sourced. For example, if the business owner decides to invest their own personal savings into the project, the timeframe required to do this is minimal. However, if they require external investment, raising capital from a lender or private equity investor could take anywhere up to a year.
strategic plan may need to be reset using critical planning.
As the business is taking small steps in the short term which will support the delivery of its long-term goals, it is important to continue to bear in mind that the goalposts can change. If the short-term plans are no longer supporting the direction of the business, the strategic plan may need to be reset using critical planning. In this situation, it is not uncommon to reach out to outside counsel to ensure that the business is operating with the right skillset to meet its evolving targets. A good business owner is able to recognize the limits of their own abilities, and when outside knowledge is needed to support the gaps.
Finding success in a constantly shifting market can be challenging. But with the right combination of big-picture planning and short-term agility, all supported by the right team of advisors, they will establish that business owners are well placed to take advantage of any market opportunities that arise.