Managerial Daily Functions
Long-term goals: Goals that companies plan to achieve within three to five years.
Perhaps a business plans to double its revenues in five years. Perhaps a business wants to provide a certain service to the homeless in five years. Goals depend on the nature of the business. Click the tabs to learn how accounting can assist with long-term goals.
Increase Personal Wealth
Expand Into New Opportunities
Go Public
Create a Lasting Legacy
Many entrepreneurs have the long-term goal to eventually increase their personal wealth. Increasing an entrepreneur's personal wealth may mean different things to different people. The common definition is to increase financial resources, but other definitions may include creating a flexible work schedule, meeting social needs in society, or improving the lives of individuals who work in the company. These long-term goals help entrepreneurs stay on track when they start a business and create plans to increase their wealth.
Entrepreneurs may start a business with the plan to grow and expand the business into new opportunities or industries. This long-term goal allows entrepreneurs to focus on making their business the biggest and best in its industry. Entrepreneurs who set these types of goals often have a larger plan in mind when they start a business. These plans may require the help of other individuals or economic resources to grow the business. Entrepreneurs may also want to expand the business quickly through whatever means possible. Although this goal carries a high risk, it often brings a high reward if the business plan succeeds.
Entrepreneurs may have the long-term goal to take a business public. This long-term goal may take several years to complete. Small businesses usually must have a strong history of financial performance in specific business operations to assure future investors about the company's long-term viability in the business environment. Entrepreneurs may also need to recruit other individuals to work in the business who have extensive experience or expertise in the industry. Managers must hire the right individuals to create strong business operations and take a company public.
Entrepreneurs may start a business to create a lasting legacy for their family. Starting a business allows individuals to recruit and employ family members in the company. The entrepreneur's children may eventually take over the business and continue to run the company for several generations. Many of today's largest companies started as simple family businesses. Although this long-term goal may be the most altruistic, it can also be difficult to maintain because family members may quarrel about how to operate the business.
