Short term thinking vs long term thinking
Welcome to Indulgers’ guide on short term thinking vs long term thinking. We all are somewhat confused about what is short-term thinking vs long-term thinking. You might be thinking which one is best for you and your career or you might be worried about how to create a balance between these two. Short-term goals look for quick payback while long-term aims require more patience. Choosing the right mix of short and long-term vision maximizes value for the organization. Remember, it is impossible to maximize long term growth and short term profitability at the same time, you have to pick anyone at the cost of the other. Indulgers’ guide will show you which one is the best fit for your goal.
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Long-term goals are those for which you want to devote your life most time and want to achieve it at any cost. It might be your career, relationships, social status, your intelligent and personal development or it might be your financial goals. On the other hand, you might also have short term goals. In this case, you want to achieve it in no time, somehow, without spending too much on it. Both are crucial for success. In a revolutionary era, short-term thinking can help you and your organization survive. However, to succeed in the long term, you need to utilize effective long-term projected decisions.
By keeping a clear perception of where you want your business to be in the next couple of years, will help you to suggest actions and plans essential to achieve your goals. Long-term intellectuals observe everything differently compared to short-terms. Long-term thinkers squeeze environment that influences their whereabouts, lifestyle, and consequences. Their short-term counterparts often think about present goals losing their vision of the future.
Successful entrepreneurs know that dealing with the present and future is like talking about apples and oranges. Focusing on short term goals is like working in the business while the other one is just like working on the business. New entrepreneurs, having minor experience often start as short-term thinkers, make mistakes, and ultimately become long-term thinkers.
Businessmen face challenges and opportunities every single day. Consciously or unconsciously, they evaluate everything based on the urgent vs important matrix, where urgency almost always wins out. Managing by values helps ensure urgent decisions are made that are consistent with long-term aims and goals. So, ensuring perfect decisions in a crisis not only solves short-term problems but also are aligned with long-term success.
Developing a healthy culture can thrive you and your business model. When employees know they will be analyzed or rewarded for their decisions and behaviors, they do brilliant work. You have the responsibility to add value to the present, to ensure that excellence is present in the organization, and customers are happy, that everything is well managed and optimized and that they are creating value.
Every organization needs short and long-term actions. Short-term strategies help an organization overcome quickly with crises or rapid change. Short term activities are quick and often low cost, their effect tends to be incremental. For Instance, refining a product rather than developing something entirely new from scratch. You will find that the benefits and costs appear quickly and are easy to measure. However, through long-term actions, organizations try to find to achieve more substantial. They may invest in new infrastructure or business areas. These investments take longer to pay off, and can be difficult to compute in advance, but can act as game changers for organizations.
In sustainability, many actions are short-term wins. However, realizing other investments in stakeholder relationships or environmental stewardship takes time. For sustainability, it’s also important to consider the needs of different stakeholders as they affect the organization.
Don’t Be Cheap on Strategic Issues to achieve your short term goals. This is just like cutting off your nose to spite your face! You need advisors that know your business requirements. Utilizing digital marketing is not always a true alternative for your human talent. Using cheapest shipping vendor indeed results in the highest instances of late deliveries to customers. And guess what can happen next; customer starts complaining about missing shipments, which put the company in a negative light, and they will start to lose repeat sales.
Behaving like weeds can save you a few bucks but guess what will happen if you lose focus on how to excel your revenue to the next level for the long term. You may have saved $5K in monthly expenses, but you probably also lost $50K in revenue. You need to prioritize your time and invest it in the best ways possible to achieve the desired results in the long run. So, think long-term because a lot of your inventions and innovations won't work. If you are going to be customer-centric, you have to establish facilitating inventions and innovations as a core part of your business model.
Long-term thinking is just like a muscle, use it a lot and it will become second nature. It'll influence more and more decisions you make for the better. You'll find you don't have to make a big effort to get off the couch and get to work on that project because you know already the long-term benefits, it's bringing you. So, takes the action with better long-term and you'll also notice that long-term thinking has a positive impact on everything you do and you'll come to find you gain more control over your life and your business.
So, the conclusion is don’t be a cheap ass!! Yes, you want to keep your expenses as low as possible. But do you want to make cash flow driven decisions that end up slicing your own throat? Each business decision needs to do what is right for the business. Remember, it is impossible to maximize long term growth and short term profitability at the same time, you have to pick one or the other.