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Prioritizing Long-Term Success Over Short-Term Gains

Business decisions are not always easy. Understanding business is not always easy. Foreseeing long-term success over short-term gains is hardly even possible. It takes a keen eye, ear and mind to do such. It's a gut thing. Everybody always wants the big, short-term gains. If I can sell product A for $500 once instead of $250 twice, I should do it, right? Not always. If I can provide service X for $1,000 once instead of $500 once, I should do it, right? Not always. This brings me this note: less price for more sales is better because it is more sales. The quick 'win' is not always the best. Supply and demand matters.. Price point matters. Repetition matters. Longevity matters.... "well, maybe."

A story I have heard and read numerous times seems very relevant here:

"Once upon a time there was a Chinese farmer whose horse ran away. That evening, all of his neighbors came around and said, “We are so sorry to hear your horse has run away. This is most unfortunate.” The farmer said, “Maybe.”

The next day the horse came back bringing seven wild horses with it, and in the evening everybody came back and said, “Oh, isn’t that lucky. What a great turn of events. You now have eight horses!” The farmer again said, “Maybe.”

The following day his son tried to break one of the horses, and while riding it, he was thrown and broke his leg. The neighbors then said, “Oh dear, that’s too bad,” and the farmer responded, “Maybe.”

The next day the conscription officers came around to conscript people into the militia-like army, and they rejected his son because he had a broken leg. Again all the neighbors came around and said, “Isn’t that great!” Again, he said, “Maybe.”

The whole process of nature is an integrated process of immense complexity, and it’s really impossible to tell whether anything that happens in it is good or bad — because you never know what will be the consequence of the misfortune, or, you never know what will be the consequences of good fortune."

Well, maybe. As simply logical and easy to understand as the above story is, one must also admit that making solid plans for the future is important and the right decision. You can only control what you can control. That is not just for business but also life. So, on the topic of the title above, one can plan accordingly for long-term success instead of short-term gains. If you could gain 10% more sales (quantity of sales, not dollars/revenue) by doing something, you should do it. If you lose any quantity of sales, you better make up the difference in revenue by doing so. Sales quantity is job security. The more the merrier. There is a minimum return that you need to make on your efforts, producing goods available for sale or the services that you render. Know that amount prior to conducting any business. It is that important.

Our consulting services offer solid perspective on this topic to further inform you on how to make more sound business decisions for long-term success. However, if you do so wish for the more short-term gains, we can properly direct you so that you do such within your boundaries allowing you to afford to continue operating for the next decade or more. Let us know how we can help!


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