NFIB

Creating a Long-Term Plan, Part I
04/ 01/ 2002

A noted TV talk show host once interviewed five 100-year-old people. When these centenarians were asked the secret of attaining their age, several commented that, when they were young, they envisioned themselves becoming very old -- not just 70, 80 or 90, but 110 years or more. They said that if they had thought of themselves as living a shorter amount of time, they might not have made it to 100.

The same can be said, in ways, for a business. How long do you think your company will exist? Few of us will be around in 100 years, of course, but it's likely that some readers of this Workshop have already have created businesses that will still be around in the year 2101, and beyond.

What are the traits of such a business? And how can you plan now for your company's longevity? Today's and next week's Workshop, by contributor Jeffrey Moses, offers tips that can help you plan for the long, long, long haul. And remember, planning for the distant future just may help your company flourish in the short term, when you personally will benefit from and enjoy it.

1. Build flexibility into your business plan. Almost every company that has existed more than 50 years has transformed itself a number of times. In many cases, the business is selling completely different products now than when founded. So when you create your business plan, be aware that you'll always want to optimize new opportunities as they arise.

2. When bringing out new products, timing is essential. You'll need to learn how to read your industry so that you're not too far ahead or behind the curve when bringing out something new. As Andrew Carnegie once said, "Pioneering doesn't pay." That may be because it always costs more to market products with which the public isn't familiar. By the same token, you don't want to wait until everyone else in your industry is already offering the same thing.

3. Don't become emotionally attached to new products. When a new product isn't selling, cut it loose before it costs you too much in lost effort and finances. It's extremely difficult for a small business to expand when one of its main products or product lines is draining resources that could be used to fuel other areas of the company. Always consult with your business adviser or accountant when you feel you may have to jettison a new product.

4. Set up secure and adequate lines of financing. It's almost impossible for a small business to continue to grow for decades without proper financing. Only when you can consistently take maximum advantage of seasonal fluctuations (such as stocking up before the holiday season or other special buying seasons for your industry), can you maintain the momentum required to stick it out for the long term.

5. Don't let your company fall behind in technology. New hardware and software products continue to let small businesses compete more economically and efficiently. This trend will accelerate and you'll have to remain alert to take advantage of tech innovation. Who can imagine what business software and hardware products will be available 100 years from now? Or even 20 years from now? Be flexible. Stay alert. And keep abreast of changes that can affect your productivity.

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