There are many ways to build a business; I’m thinking in terms of long term or short term.
Most of the companies I work with are what I’d call long term. Businesses that develop from a small kernel of an idea; or a fairly large investment to create a business with a reasonable size team.
These businesses develop their client base and position in the marketplace and continue to trade for a long time.
In my experience, some business owners have a clear idea of what their business will achieve, spanning many years (even decades). They’re in it for the long term.
Many business owners I ask, haven’t thought much about the details beyond a few years, if that far. This is a fairly typical model of the S of the SME world.
What about a different approach?
Here in Dubai, and I know it’s not only here, I learnt more about a culture of quick in and out. Build a business quickly make a big profit from an opportunity, and move on.
It led me to think about the way a number of business owners I’ve talked to, plan (or rather don’t plan) the model of their business.
What is the end game, and how long should a business run? Is the business something long term, or could it be that it would be better to gain a quick return from a specific opportunity.
I’ve met a number of people who now have a portfolio of long term business investments, built on the profits of a short-term opportunity.
One example I can think of, was when Ireland changed to the Euro. Lest just say that there were a number of people who had savings in Punts that they didn’t want to transfer to Euros.
I’m thinking of one specific sector for my example. The marine sector. Namely the building of racing yachts. In 2000, Cork Week (a big sailing competition), there was a massive increase in new yachts. A number of boat building companies took the opportunity to up production within a specific timeframe.
The thing is, people that were ready to take advantage of the boom years, made significant profits; and then, either finished with that business, or descaled back to a previous operating level.
So, if you’re looking at an opportunity in business, there may be some that arise around the changes due to Brexit; Could you set up a short-term business that has clear goals and a specific timeframe/targets?
From my point of view, it would be an interesting and exciting opportunity to mentor business owners of short term/specific target businesses, and help them then develop long term companies.