Business Planning – Short Term, Medium Term and Long Term Goals

December 4, 2015

One of the most important components of a business plan is the goal setting. Obviously, the goal which is common to every business is to make a profit. The overall goal of every ambitious entrepreneur is a summer house on the Caribbean, a yacht and a private jet. This goes without saying, but how do you get yourself there is the real question.

 

When your goal is way over the horizon, keeping your gaze focused on it for long is almost impossible. Separating your goals into terms will make your way to your ultimate success more precise and also far more rapid.

 

Goal Setting is A Built-in Tracking System

 

Once you know what your interval goals are, you will be able to track your progress. Goals make your progression quantifiable at any given point. Once you hit a certain date, you will have either reached a certain revenue, or not.

 

Moreover, this will not only allow you to evaluate your progress, but assess the goals as well. If you have revved-up your activity to its maximum and still consistently underachieve your goals, then the goals themselves may be unrealistic and need to be reevaluated. As we have mentioned before, it is important to be ambitious, but keeping your goals achievable is very important as well.

Financial forecasting

So how do you make sure you have a game plan with achievable goals? Simple, by breaking down your goals into sub-categories with different time frames. This separation will allow you to place the focus on the next goal in line, while remembering that it is also a part of another benchmark up ahead.

 

Planning Strategy

 

The most efficient way of setting-up your goals is to divide them into short, medium and long term benchmarks, nested within each other. This way, a long term 10 year goal will have several two or three-year goals in it, with each divided into one-year goals. Those goals are not only different in time frame, but are also different in nature. Let us explain.

 

Short Term Business Plan Goals

 

The short term plan outlines your goals within a year’s span, as well as concrete positive actions necessary to reach them. The planning should take into account your company’s present state, and establish strategies to get it ahead. This can include employee training courses, more efficient marketing, or new equipment to streamline processes. Things that will improve your company’s performance right away.

 

Medium Term Business Goals

 

This type of goal requires more permanent solutions to the type of problems it needs to address. For example, if the short term goal was raising product quality, then paying extra care to it takes briefings and incentives. But if product quality needs to be addressed on a medium-term level, then setting regulations for quality control and assigning another supervisor to the department may be necessary.

 

Long Term Business Goals

 

This is the range where you want to solve larger problems, such that require solutions of a higher order. Here is where you should be addressing the company’s activity in all fields – the economic, social, and political environments. This type of goals demand the development of comprehensive strategies that will drive the company ahead towards the greater achievements. They may include coming up with a more efficient corporate culture, developing ties with strongly positioned strategic partners, or new market penetration strategies, just to name a few.

 

The long term planning will only work when your short term plan works. You need to be able to build the larger success on your day to day achievements. For more information, feel free to call us now and get help from business plan writing professionals!

 

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