How Can You Organize Your Business with a Time Horizon?

 

Any group wanting effective organization uses time horizons, even if they are not familiar with use the phrase. In government, things like terms of office can be considered time horizons. In school, a due date for a paper is a time horizon. Why, though, are they important and how can they help your small business?

 

No matter where you are with your business, setting specific well researched goals is essential. Whether you are in the beginning stages of setting up your venture or if you are just changing it in some way, a time horizon can give you the structure and motivation to meet your small business goals.

 

 

Clearly defining your wants and needs for the future is the first step in setting goals, the same can be said for time horizons. Take a look at your business and think about the most pressing issue or what will take it to the next level.

 

 

Before you set your goals, be sure you are well aware of the amount of time each will take to complete. If you are just starting a business and trying to set a goal for when you want it to be profitable, make sure it is a realistic goal. Is your goal possible? Is it too lenient? An unrealistic goal can lead to frustration, but a relaxed time horizon can mean a relaxed effort. Make sure you are keeping your business accountable while also giving it achievable goals.

 

 

When thinking about your business you may realize that there are several things you would like to accomplish. If so, it’s important to organize your different time horizons into three categories: short term, medium term, and long term. Since time horizons can be used for any goal, the range for each category may be large. A short term time horizon can mean the end of the day, week, month, or even six months. Long-term can mean anything over a year or it can be as long as five years down the road. You can even create a five-year-plan that relates all of your time horizons into one timeline, so all of your smaller objectives help you along the path of reaching your bigger goals.

 

 

Make sure you are well acquainted with the cost of your goals and familiarize yourself with the potential market risks and pitfalls you may face. Your time horizon goal will be easier to achieve depending on the accuracy of your fiscal assessment.

 

 

Once you have an idea about the expected time and cost of your goal you can set your time horizon. This is also when you should create your business model or plan of attack. This includes anything that will help you to reach your goal by your set time. Keep in mind, this date does not mean you are working toward a success-or-bust scenario. A time horizon is simply a date when you commit to either achieving your goal or reassessing your plan of action.

 

 

There are plenty of things that can get in the way of achieving your goal, and a lot of these have to do with money. Debt is a big impediment to reaching any financial goals, and a lot of businesses have it. Make sure you keep your debt in check. Luckily, many of the organizations that are set up to help individuals can also help businesses like consolidation firms or other debt help groups. However, steps like these should always be a last resort. The best thing to do is to avoid unmanageable debt in the first place.

 

Another possible goal obstruction is an emergency. Whether it is a market downfall or some other unexpected issue, emergencies can throw you off track and put you behind schedule in meeting your time horizon. A solution to this problem is an emergency fund. Although it is impossible to anticipate what form an emergency will take it is better to have some money set aside just in case, than none at all.

 

As a disclaimer, a time horizon goal should not dissuade you from taking on new, unanticipated opportunities. If you are given the opportunity to diverge from your current plan for a better goal, don’t be so focused on your time horizon that you pass it up. However, with the proper planning and dedication, a time horizon can give your business organization and direction.