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As a rule of the thumb, when you are in the process of launching a new business, you need to dedicate time to the creation of your business plan. The business plan is designed to provide market analysis and interpretation as well as a long-term strategy that defines your operations for the next 3 to 5 years. Consequently, it has become impossible to think of strategic planning without picturing long-term results. Ultimately, it’s easy to understand why strategies built over several years are necessary to the creation of a company; they provide the direction.
However, to survive, your business needs to adapt rapidly to a moving environment. Longstanding objectives offer an insight into success definition. But knowing where you want to be next year doesn’t help you to react to today’s event. That’s precisely why short-term strategies play a significant – albeit too often forgotten – role in the survival of your business.
Buy equipment today, sell it tomorrow
You can’t start a business without investing in the necessary equipment. When a company is faced with multiple choices, from leasing to purchase, it can be difficult to understand what is best for your business. As a taxing rule, purchased equipment is deductible, meaning that you can gain tax advantages when you buy. Additionally, strictly necessary tools should not be leased, as the expense of purchasing is likely to be recovered. More importantly, you don’t need to buy the latest tools to make it work. Startups and small businesses can focus their attention on second-hand goods that fulfill all the necessary functions. You can then minimize losses by selling your equipment in order to finance the purchase of new items. In this situation, your equipment investment has a short-term life expectancy and still delivers ROI.
Argh! We don’t have a budget for new staff!
Seasonal peaks, urgent deadlines or heavy projects; whatever the reason, you might find that you’re short on staff. However, when you can’t afford to hire new employees, you need to consider effective alternatives that keep your business afloat without over-stretching your existing workforce. Seasonal deliveries around Christmas time, for instance, can be covered through temp driving jobs, without affecting your productivity or your budget. Last minute projects can be outsourced to experts when and where you need their support. Similarly, you can also call in freelancers to give you a hand during busy periods or critical operations.
Label your prices for tomorrow, not next year
Did you know that there is a complex price psychology principle that taps into the way you choose to label your products or services? Take a look at Apple, for example. The luxury price tag is part of the Apple brand, as it creates a sense of quality and value. But when you’re trying to build a brand, you can’t apply Apple’s pricing strategy. On the contrary, you need to consider short-term penetrating pricing, such as offering your product at a lower price to gain momentum on the market. This practice generates a high ROI and boost brand awareness.
In conclusion, sometimes it’s necessary to plan for today instead of thinking about tomorrow. Whether you’re building your productivity chain or your managing seasonal fluctuations, short-term focus creates stability. But don’t let your short-term strategy steal the show; you need a long-term objective to grow!
Growing Forward 