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Long term thinking

February 7, 2023
Long term thinking is vital to the continued success of a business. However, many firms think they are playing the long game but are plagued by short term thinking.
Shannon Vincent

Bill Gurley, successful Venture Capitalist and the most “normal” VC guy I have ever listened to said the following:

“If you’re starting a company because you think it’s going to be a good lifestyle, holy $hit. You’re in for a rude awakening.”

The same applies to starting a CPA firm.  Yes, at some point many firm owners achieve a good lifestyle yet that takes time and good decision making.

One factor is short term thinking vs. long term thinking.

Short term vs. long term thinking below defined (by Chat GPT).  Will be interesting to see how much Chat GPT will be referenced or if people will not reference using Chat GPT.  Do people reference something when they learn it based on a google search?

“Short-term thinking refers to making decisions based on immediate, current needs or goals, while long-term thinking refers to making decisions with a focus on the future and potential long-term consequences. Short-term thinking may lead to immediate satisfaction but may not be the best decision in the long run, while long-term thinking may require sacrifice in the short term but lead to greater benefits over time.”

Many firms think they are playing the long game but are plagued by short term thinking. 

They have multiple business models under one roof.  Hang on to clients because they are either worried about what others think of them or short term revenue (typically trading dollars).

Your reality is largely negotiable.

Some great questions to ask yourself as you make decisions.

What are the implications of this decision in 3 years? 

What is the absolute worst case scenario? 

What would I do if I absolutely knew I would not fail? What if I could only subtract to solve problems? 

How would this look if I dropped the struggle and it were easy? 

“Whenever you find yourself on the side of the majority, it is time to pause and reflect.”

— Mark Twain

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