Wednesday, September 7, 2011

Balancing short and long term activities in a startup

This article was cross posted to StartupSmart.

An issue we've been discussing internally lately is how to balance short and long term activities. We've got 2 big projects we've been working on over the last 6 months and together they occupy the equivalent of 8 of our 17 team members full time. Both projects are progressing very well (Sneaking Duck is one, the other we'll be ready to announce soon), however the challenge has been they have had 0 impact on sales to date as they can't have an impact until they launch.

That means that day to day operations and short term growth activities have fallen to the other 9 members of our team. Our day to day operations are manageable with 9 people however we've had very few resources left to invest short term sales growth activities over the last 6 months and as is reasonable to expect, that's meant we've not been experiencing the same growth rates as we did last year.

As we're learning, startups need to strike a balance between short and longer term growth activities. If we had our time again we wouldn't change things as our 2 large projects are giving every indication they'll have significant positive impacts on our business, but balancing the short and long term is something all startups should give thought to.

1 comment:

  1. A common problem in most small businesses! Always a challenge to balance CapEx and OpEx because you don't want to waste existing earnings, yet you can't grow without successful projects.

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