Long Term Planning – Critical To Business Success

Planning by its very nature is essential, for as the cliché states and is quite true in practicality “if you fail to plan, you plan to fail”. Planning ahead for unforeseen circumstances can reduce the effects of uncertainty and elements of disaster. Short term planning has its place but in order for sustainability to prevail an arrangement that covers more than five year life span should be developed.

Businesses should practice developing short term plans as well as long term plans in its strategy for sustainability. Planning in any form is important to the success of any endeavor. Plotting a future course makes sense in every way. Long-term planning is the responsibility of any leader and without vision we will indeed perish. Focusing merely on short to medium term outcomes can hinder growth and create obstacles in goal attainment. Long term planning with structured goals give meaning to daily activities.

In order for business to reap the greatest possible successes a projection into the future prospects must be done. Making arrangements and incorporating proactive strategies will undoubtedly create a situation in which the business can better handle unforeseen circumstances. Thinking of where you will be in the next five to ten years are great strategic moves to ensuring that your business will in fact be around for those very years.

Long term planning does not equal profitability, what it does is place you and your company in a better position to make prudent business decisions and to better handle external shocks and uncertainties.

In considering and developing a long term plan for your business, there are a few essential points you must consider:

1. Be flexible in your business plan. Almost every company that has been around for 50 years or more has transformed itself a number of times. So when you create your long term business plan, be aware that you will always want to optimize new opportunities as they arise.

2. Establish secure and adequate lines of financing. Small businesses can’t survive and continue to grow for decades without proper financing. In order to stick it out for the long term, plans for financing – capital injection must be a part of your plan.

3. In looking to the long term don’t allow your company to fall behind in technology. New technology both in hardware and software gives small businesses the tools to compete more economically and efficiently. The technology available today will be either obsolete or in a much advanced format in a decade or so. It is important to be flexible, stay alert and keep abreast of technological changes that can affect your productivity.

4. Always reinvest money into your business. Instead of getting the BMW you have been dreaming of in the first year of your business, consider putting the money back into marketing, office equipment, or employee benefits. Try always to keep your business moving forward putting enough funds in reserve in the event of financial difficulties in the future.

5. Be cautious in selecting strategic partners whether individuals or companies. A good synergy can position your company for long-term stability and growth. The reverse can also happen where a bad partnership can bring down both companies.

Failure to plan for the long term can result in defeat, crumbling at the feet of your obstacles instead of rising to victory. Remember, planning for the distant future just may help your company flourish in the short term, where you will personally benefit and enjoy it.

Retirement Tips

Some useful retirement tips for you:

1. Plan, plan, plan. Most persons will retire by 65 years of age, and many of them will live well beyond the age of retirement. We must plan for retirement and continue to plan throughout retirement. The earlier we begin the better.

2. Keep occupied. Work provides structure in our lives. It provides an opportunity to contribute and interact with other people and gives us a sense of purpose. It is important that we keep ourselves occupied during retirement.

3. Volunteering helps. It will be difficult for many people to get paid employment during retirement but we can find fulfillment in volunteering. This allows us to give back and is also an opportunity to keep ourselves occupied and to feel useful and worthwhile. We can become involved in church activities, service clubs or numerous charitable organizations.

4. Pay attention to your finances. This is a big one. Most people live longer than their savings. In Jamaica, where we have limited retirement plans, many people use real estate as a good buffer. I’ve seen, for example, where many people convert their homes to accommodate a tenant and they themselves move into a smaller home.

5. Make practical changes. Make sensible lifestyle decisions. Many persons downsize; consider moving into a smaller space and get rid of some of the clutter. Make practical decisions such as moving out of a house with stairs, giving up a large house or the car, or sharing a house with family members or friends. Letting go can be the greatest challenge in retirement.

6. Deal with emotional issues. Retirement is a time of difficult transition. It involves a loss of job, the loss of income and the loss of friends. Remember, grieving is a natural and normal reaction to loss.

7. Enjoy your retirement. Most people, rich and poor, enjoy their retirement. Give, love, share and care, and you will find happiness.