Escape the Fog: Why Mid-Term Planning is Your Business Compass

Businesses often find themselves at one of two extremes. Some are dreamers, lost in long-term visions with little grasp of the present. Others are so focused on immediate survival they can’t see beyond the next quarter. Neither approach is ideal. Sustainable success demands a balanced perspective.

While a distant “North Star” provides overall direction and daily hustle fuels progress, it’s mid-term planning that bridges the gap. Think of it as a “mini North Star” — tangible milestones that keep your efforts aligned and allow you to regularly assess whether your daily actions are truly propelling you towards your ultimate goals. Without it, you risk stagnation, wasted effort, and the sinking realisation that your hustle isn’t strategically effective.

Mid-term planning isn’t about predicting the future with crystal-ball accuracy. It’s about creating a flexible roadmap that guides your actions over the next one to three years. It’s about setting realistic goals, identifying key initiatives, and allocating resources effectively. It’s the crucial link between your grand vision and your day-to-day operations.

Consider a tech company aiming to become a market leader in AI-powered customer service. Their “North Star” is clear, but without a mid-term plan, they risk getting lost in the weeds. A solid mid-term plan might involve:

These milestones provide tangible targets, allowing the company to track progress, adjust strategy, and ensure that their daily efforts are aligned with their long-term vision. Without this mid-term focus, the company might find itself chasing shiny objects, wasting resources on dead-end projects, and ultimately failing to achieve its goals.

So, how does this apply to our different audiences? The beauty of mid-term planning is its universal relevance.

For the Builders, the leaders of growing companies, mid-term planning is essential for scaling effectively. It provides a framework for making strategic decisions, allocating resources, and managing growth. It helps you avoid the common pitfalls of rapid expansion, such as losing focus, diluting your culture, and overstretching your resources. It’s about building a solid foundation for long-term success.

For the Buyers, the Venture Capital firms, Private Equity firms, Family Offices and Strategic Buyers, a company’s mid-term plan is a key indicator of its strategic thinking and operational maturity. A well-defined plan demonstrates that the company has a clear understanding of its market, its competitive landscape, and its own capabilities. It also suggests that the company is well-managed, disciplined, and focused on execution. Conversely, a lack of a mid-term plan is a red flag, suggesting a lack of tactical understanding and potential future problems.

For the Sellers, the owners of established, profitable businesses contemplating a sale, a compelling mid-term plan can significantly increase the value of your business. It demonstrates to potential buyers that your business has a clear path to future growth and that it’s not simply relying on past successes. It also shows that you’ve invested in the future of your business and that you’re committed to its long-term success.

These perspectives are interwoven. Builders should be aware that their mid-term plans will be scrutinised by potential buyers. Buyers should understand that a solid mid-term plan is essential for realising the full potential of an acquired company. Sellers should appreciate that a well-articulated mid-term plan can significantly enhance the attractiveness of their business to potential buyers.

The rise of automation, AI, and emerging technologies is only going to make mid-term planning more critical. These technologies are disrupting industries at an unprecedented pace, creating both opportunities and threats. Companies that fail to anticipate these changes and adapt their strategies will be left behind.

Automation and AI can also play a key role in improving the accuracy and efficiency of mid-term planning. AI-powered forecasting tools can analyse vast amounts of data to identify trends, predict future outcomes, and assess the potential impact of different scenarios. Automation can streamline the planning process, freeing up human resources to focus on more strategic tasks.

The increasing demand for efficiency also means that mid-term plans need to be more data-driven and results-oriented. Companies can no longer afford to rely on gut feelings or anecdotal evidence. They need to base their plans on solid data, track their progress meticulously, and adjust their strategies as needed.

So, what are the key takeaways here?

Ultimately, mastering mid-term planning is about creating a resilient and adaptable organisation that can thrive in a rapidly changing world. It’s about bridging the gap between your long-term vision and your day-to-day operations. It’s about ensuring that your hustle is strategically effective and that you’re building a solid foundation for long-term success.

At Skipa, we’re passionate about building extraordinary companies, and we believe that mastering mid-term planning is a critical component of that. We’d love to help you develop a mid-term plan that sets you up for success and helps you build an extraordinary company. Let’s collaborate to Build Extraordinary Companies. Reach out today.