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Tuesday, December 6, 2022

Initial or pre-training phase – Short and Long-term plans

By Abosede Ajala

The mindset of an entrepreneur is a specific set of belief, knowledge and thought that are processed to drive or move entrepreneurial behavior. Any entrepreneur that tends to have this trait, have a humanistic outlook and they are problem solver, hence they believe that value can be created by solving problems for others.

The Short and Long-term Plans: The long-term business plan as it sounds, contains the goals set for the business within the period of five to ten years, and a comprehensive framework of the entire business. While a short-term business plan evaluates your progress in the present and creates more action plan to improve your performance daily. The period could be for one to two years.

Both short and long term plans are set by an entrepreneur, or business owners to help them measure their performances in the workplace or at market place to know if they are on track with their goals.

Short-term planning is seen through the characteristics of an organization such as skills, strategies on how to improve and meet long-term goals. There are factors that can help in this plan to meet success. They are, Cash flow, Budget, Savings of capital, Investments of stock, Organization, Communication and
Ability to network and daily routines.

Also there are factors too that allows success to be achieved through long-term plan. They are; Sales, branding of your product, public reputation, numbers of staff and social and digital media. Short-term describes its plan for a term of one to two years or at times may be up to five years. While long term can be 10-20 years or 50 years, an example; land lease can be for 99 years or even longer than that. Both plans face these challenges; the goals of the business, strategies to thrive, and the financial plan to carry out the operations or task set for the business. The finance which dictates the timing of cash flow. Short term financial decision involves cash flows within 12 months; the long term is always longer than one year. The financial planning is very important, from the startup to large established companies or Industries, for it puts answers to certain questions like;
– How many inventories should a business keep or have,

– How much cash flow should an entrepreneur have that is available in the bank for payments of bills etc. and
– How much credit should you allow or extend to customers.
In this year new year we wish you all the good things of life most especially we say think entrepreneurship an act as an entrepreneur.

 

 

 

 

 

 

 

 

 

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