Businesses should take the long-term approach

Wednesday, September 30th, 2020 00:00 |
Economic growth. Photo/Courtesy

Business success is perceived differently today. Buzzwords such as maximisation, venture-backed, growth hacking, and well-conceived exit strategies (IPOs or acquisitions) define entrepreneurial success in the current age.

 In a mad rush to show high quarter-on-quarter growth rates, corporate leaders have forgotten the true value of a business is how long it stays relevant in the market and not transient growth spurt.

Any business, no matter how big its initial success, needs to take a long-term approach if it wants to avoid being one of history’s also-rans.

This applies to every aspect of the business, including, people, products, and customers.

Invest in People: As a new company working on developing deep tech, discovering talent and retaining them is a challenge.

Try to create and slowly nurture a pool of capable workers who will gain domain expertise over time.

 At Zoho, to sustain our long-term R&D efforts, we initially kept the teams small, and worked with people who were committed to learning and understanding the domain. Patience is key in cultivating talent in-house. 

As people refine skills and gain deeper domain knowledge, they gradually bring learning to the business and build a solid offering that will stand the test of time.

Ultimately, it’s the culture of experimental learning that you build which keeps you going and also motivates people to stick around for the longer haul.

Build a product that can pivot and adapt: equally important is to take a long-term approach to your product.

You might be selling something simple today, but you need to be able to build on that. 

Take Amazon, for example. It started out selling books and gradually built out to become a trillion-dollar company.

It hasn’t just focused on e-commerce either. Amazon Web Services (AWS), its cloud-computing division, keeps more than 40 per cent of the internet up and running. 

The lesson here is that long-term thinking isn’t just about having a product plan and sticking to it.

It’s also about adapting to any future opportunities that present themselves. Whatever sector you operate in today, it will see disruptions sooner or later. 

If you can adapt to those changes, or find new opportunities in other sectors, you will be better placed for continued success than your competitors.

Keep up with customer expectations: Finally, you need to take a long-term approach to your customers.

If you are constantly gaining new customers but not retaining them, you’re unlikely to see real success.

 Returning customers routinely spend more money on brands they’re loyal to.

People are also more likely to recommend others to businesses they have had a good experience with. Simply put, it just makes business sense.

This isn’t just about direct touch-points with customers. Everything, including the software solutions you use, should have the customer at heart.

For example, a unified tool which allows you to instantly see every interaction a customer’s had with your business (be it via voice, email, or chat), will put you in a much better position to serve them than trying to work with several different products.  

Taking this long-term approach might feel overwhelming initially, but it’s much more likely to pay off than simply trying to survive from quarter to quarter.

After all true success is built over time. — The writer is the  Region Manager, Africa, Zoho Corporation

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