When business owners in Texas take the time to plan ahead, it will be easier for them to make short-term decisions each day, which can save a lot of time. By planning for long-term goals, business owners gain a better understanding of how to effectively employ capital. However, most business owners do not make long-term planning a priority.
According to a survey of 500 small and mid-sized businesses that was completed by SunTrust Banks, Inc, 28 percent of business executives have not done any real long-term business planning. Although four in five companies consider business growth to be a top priority, just one third of business executives have planned for growth. The head of commercial banking at SunTrust says that the business executives who do plan ahead tend to focus on no longer than two or three years ahead.
SunTrust recommends that business owners who want to accelerate growth complete a six-year plan. By looking this far into the future, business owners are better able to position their company for success. Some of the parts of a six-year plan should be a competitive strategy, growth strategies, capital and debt restructuring and potential opportunities for divestiture.
If a company needs to secure funding for growth, having a comprehensive business plan is essential. Many lenders will only consider lending to companies that have long-term business plans. An attorney who has experience with these types of matters may be able to help a client to develop a business plan that could be used to secure funding. An attorney can also be of assistance during business formation and contract negotiations.