Short-Term Management and its Risks
                     SHORT-TERM 
MANAGEMENT 
AND ITS RISKS
Introduction
Some businesses aim at short-term 
management instead of long-term 
development. They have even been 
called the ones who cause financial crises 
 because they don’t support a sustainable 
development of the local economy.
Source: bizonaire.com
Short-term 
oriented business 
services
First of all, most companies can be 
classified into short-term oriented, like 
business services, technology gadgets, 
banking services, and broad-selling 
stores. Long-term ones include food, 
medical products and retail.
Source: bizonaire.com
Why it is popular?
Short-term management is popular 
because people tend to be cautious and 
impatient when it comes to their money, 
and therefore they invest in stuff that will 
give them back short-term profits. 
Source: bizonaire.com
Development 
strategy
 This is quite anticipable, being related to 
the ambiguity 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.
Source: bizonaire.com
Investment 
decisions
Many investment decisions tend to be 
governed by short-term management, 
encouraging small entrepreneurs to work 
more on such development. 
This vicious circle is not good, because it 
doesn’t allow startups to become big 
enterprises, who aim at long-term 
management strategies.
Source: bizonaire.com
Short-term 
investors
It’s obvious that companies who have 
chosen to pursue short-term 
management attract short-term 
investors, being forced to cope with a 
whole new list of riskier economical and 
financial development perspectives. 
Source: bizonaire.com
Long-term 
oriented 
enterprises 
Long-term oriented enterprises usually 
invest in big projects that will be going on 
for tens of years. They can be sure that 
such investments will pay-off, due to the 
existing resources and a formed 
reputation.
Source: bizonaire.com
Risk in short-term 
management
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 the short term 
management will mostly interest short-
term investors, further building up a 
short-term managerial attitude on the 
market, placing the business in a riskier 
niche.
Source: bizonaire.com
Risk in short-term 
management 
cont.
Bankruptcy is one of the most feared 
ends for businesses. However, especially 
in contexts of crisis and unforeseen 
events, this situation can seem to knock 
at the door. 
Avoiding it, however, is possible through 
a series of measures, among which the 
management of financial risks is one of 
the most important.
Source: bizonaire.com
THANK YOU