Many business owners proudly put their heart and soul into their company. However, the challenges of running a business can sometimes mean owners focus too much on the short-term and lose sight of the long-term big picture. I was reminded of this in one of my networking groups. I’ve met many great people there from entrepreneurs to long-time business owners and everyone in-between. Surprisingly, no matter the stage or size of the business, there are a fair number of owners who avoid long-term planning.
For those with start-ups, they are excited about their business idea and concerned about getting customers. Often, they put off doing things like setting up a business entity, protecting intellectual property, and other legal issues. Many also don’t create a proper budget, analyze their cashflow and manage their debt. As the business grows, these owners keep looking at revenue, while failing to think about how to capitalize for expansion, hire and compensate employees, reduce debt, plan for their exit and other concerns. Some entrepreneurs imagine that they will build a business and sell it for lots of money, but they don’t plan out how they will get there and what happens once the business does sell. Established business owners think of cashing out at some point, but don’t take steps to prepare the business, determine how much they need to retire, or incentivize key employees to stay to protect the value of the company.
There is nothing wrong with focusing on the short-term success of your company, but it’s important to get an objective view of your business and personal finances. By taking steps to protect your company and prepare for the future, you are more likely to achieve your goals.
Do you have a long-term plan for your business?