Certain businesses focus on short-term management in preference to long-term development. Unfortunately, they have been labelled the ones who are responsible for the financial crisis because they do not assist a viable evolution of the local economy. Several kinds of research show that short-term management is most likely to harm the businesses themselves and also their investors and clients.
Some companies can be grouped into short-term acquainted, Companies like business services, banking services, technology gadgets and broad-selling stores, while long-term companies include medical, food, retail and products.
Short-term management is popular because people tend to be prudent and abrupt when it comes to their money, and therefore they invest in stuff that will give them back short-term profits.
This is quite anticipated, being pertinent to the dubiety of any startup’s future pay-off. The longer the development strategy of the business, the greater the risks and the less trust it generates. This vicious circle is not good, because it doesn’t allow startups to become big enterprises, who aim at long-term management strategies.

Companies who have chosen to go after short-term management attracts short-term investors, being forced to cope with a whole new list of risks from economical and financial development perspectives. In the long run, these are not the problems of the long-termers. Big, long-term-oriented enterprises usually invest in big projects that will be going on for so many years.

Short-term managed companies face the risk of more unstable income and a vaguely estimated moment of success and growth. Entrepreneurs must understand that concentrating on short-term management will mostly interest short-term investors, further building up a short-term managerial attitude on the market, and placing the business in a riskier alcove.

A long-term management approach for your company must become a compulsory part of your strategy, to attract a long-term oriented investor base. Larger and richer firms indeed tend to be more long-term-oriented, because they already instil financial confidence through their size.