What does long-term mean? It's a concept that can seem daunting, even intimidating, for a new small business owner. After all, you're likely focused on the here and now – getting your product or service off the ground, finding customers, and keeping the lights on.
But some of the oldest companies in the world, like Japanese construction company Kongō Gumi, which operated for over 1,400 years, or German beer brewery Weihenstephan, founded in 1040, demonstrate the power of thinking long-term.
For you, long-term could mean five years, 25 years, or even a century. And while the specific time horizon may differ, the value of long-term planning remains the same – it provides a roadmap to build a business that endures.
Choosing a time horizon: 5 vs. 25 vs. 100 years
The time horizon you choose will shape the scope and depth of your long-term plan. A five-year plan will necessarily be more focused and granular, while a 25- or 100-year plan will require a broader, more aspirational approach.
Can your type of business meet a similar need over that time horizon? What will change, and what will remain the same? These are crucial questions to consider. Industries like food, clothing, and shelter have proven their staying power over centuries, while others, like technology, may require more frequent pivots and disruptions.
Start planning in different buckets:
1. People
- Who do you need now? A small, dedicated team to get the business off the ground.
- Who will you need then? As your business grows, you'll likely need specialists in areas like finance, operations, and marketing.
- How will you grow into the team that you need by the end of your time horizon? Develop a talent strategy that includes recruiting, training, and leadership development.
2. Product
- What is your product today? Perhaps a minimum viable offering to test the market.
- What do you hope for it to be at the end of your time horizon? A mature, feature-rich product that meets evolving customer needs.
- Does technology need to change? Likely, yes – you'll need to stay ahead of the curve.
- Do you need to learn new skills or bring new skills onto your team? Almost certainly – continuous learning is key.
- How will you know you're on the right track? Set clear metrics and milestones to measure progress.
3. Marketing and Sales
- Who is your customer today? Early adopters and niche markets.
- Who do you want your customer to be at the end of your time horizon? A broader, mainstream audience.
- How will you need to evolve your marketing or sales approach over time? From guerrilla tactics to more sophisticated, omnichannel strategies.
- Will you be able to do it while remaining a strong business at every point? Plan for sustainable growth and reinvestment.
- What marketing and sales channels will you need to master? Digital, social, traditional media – stay agile.
4. You - your leadership
- At the end of the day, a lot of this comes down to you and your evolution as a business owner and leader.
- What skills, traits, and capabilities do you have today? Passion, determination, and a willingness to learn.
- What skills, traits, and capabilities will you need at the end of your time horizon? Strategic vision, emotional intelligence, and the ability to inspire others.
- What will you do to evolve yourself into the leader your business needs? Seek out mentors, attend leadership development programs, and practice self-reflection.
At the end of your time horizon, what do you want to happen to your business? Do you want to shut it down and walk away? Do you hope that someone in your family will want to continue your legacy? Are you looking to sell your business to secure your financial future? This is a critical question to answer as part of your long-term planning process.
As the saying goes, "Plans are nothing; planning is everything.” It’s almost certain that your business in five, twenty-five, or one hundred years will look very little like you think it will today. However, the exercise of creating a long-term plan will help you clarify your vision, anticipate challenges, and develop a roadmap to build a sustainable, enduring business that realizes your dreams over the long haul.
