I see lots of talk about the 5 year plan for startups. It’s a popular topic and one which is almost always requested when pitching to investors. A five year plan outlines your strategy, your target market and your ability to grow. Interestingly enough once a business either comes close to, or passes the five-year mark the next milestone that begins to get talked about is the 100 year plan. That’s a huge jump. There must be some spot in between which is important to also follow. Yes I know some companies will already be familiar with this. But for the sake of definition I will call this the 20 year plan. What’s involved in a 20 year plan exactly? Let’s start by examining what this type of company looks like. In this first part we’ll look at three qualities which a forward-looking company should possess. First, a company which has passed the five year mark has done several things. They’ve proven they have a market which is interested in their services. They’ve also proven they have the determination to succeed as they have passed the all-important five year point. It’s possible they have proven to be agile and able to innovate as the market has shifted. Those are some characteristics of a company which has reached five years. What characteristics will help it reach twenty?
A Strong Supportive Culture
Companies looking to hit the twenty year mark must demonstrate a strong and supportive culture. This ensures the employees are comfortable and happy working in the environment. A culture which encourages its people to take pride in what they do and nurtures their personal growth as well. Strong companies look to support a culture where newcomers can’t wait to become a part. With the right type of culture an incentive package is much more than just another zero on a paycheck.
A Commitment to Improvement
The idea of improving is almost a given. Every company will say they are looking to innovate and improve. The key is showing a commitment to do so. Saying is one thing. Doing is another. In order to structure a company which will continue towards the 20 year milestone you must be willing and committed to improving. I’m using the word improving because the alternate term is somewhat scary to some people. The truth is the successful company must be willing and committed to implementing change. It’s definitely an intimidating thought to some as the idea of change is a difficult one and sometimes painful one for some people.
A Focused Expansion Plan
Successful companies must also be looking at expanding and growing. Anything floating stagnant will eventually drown. In the twenty year plan there must be a measure of attention on expansion. Notice my title though, this is not random growth and expansion I believe it must be a focused plan. It must be one carefully thought out and aimed at accomplishing a specific purpose within the company. The future success of the company depends on making the right decisions for continued expanding without losing focus of the core mission. I believe the 20 year plan is a good milestone to be added to the timeline of any company. The 5 year and 100 year plans are important and often the most looked at goals when evaluating a company but there is something missing I believe when we look only at the beginning and the end. Sometimes a company needs to spend time evaluating where they stand at the five year mark and look at the next goal before looking at the end. This is where a twenty year plan makes sense. We’ve just started to touch on what a company would need to have to look forward towards a twenty year plan. In the next article I’ll begin to look more at the details of the plan itself and what I believe companies should put down as goals.