The Philippine Online Chronicles

Time orientation  is important in business. It dictates whether the business would endure for the short or the long-term. It is knowing the value of time.   It has to do with seizing opportunities in a timely way, with being able to strike “while the iron is hot,” and, at times, being able to wait and delay gratification when necessary. 

Many businesses are based on a need (and yes, some entrepreneurs are adept at creating needs, but that is another story). And if an entrepreneur happens to be around and in a position to serve that need, that is for him opportunity to be seized. There is not much time to waste. That is how importers of emergency lights and power generators made a killing during the power crisis of the early 2000s. That is how manufacturers of mosquito repellent products (lotions, soaps, candles, citronella plants) still make good profit when dengue alerts are sounded. And remember how we all scrounged around for masks at the time we were so scared of the swine flu?

Time orientation can refer to one's ability to put off instant gratification in anticipation of bigger rewards, in terms of which entrepreneurs can be categorized into two types.

There are the ‘here-now-gone-later’ ones who tend to do business based on the ‘quick buck.’ On the other hand, there are those who start their business and grow it slowly and patiently, keeping their eyes on stability and growth for the long-term.

You have of course heard of quick buck operators. This term refers to business persons who are out to earn a lot of money in one or two fast business deals. A business based on ‘quick bucks’ cannot exist for long because buyers eventually lose their interest due to the poor quality of the goods being sold, failure to deliver on promises, shoddy after-sales service, short- lived demand (the product may be a fad), and other negative reasons.

On the other hand, there are those who go into business not expecting to earn quick money. They are willing to forego immediate profits and instead patiently wait for future, bigger, more sustainable rewards. These people realize that when they put in money in business, it will take months, perhaps even years, for them to recover their investment and turn in a profit. At the same time, they realize that when the profits start to come, they know that it was worth the waiting because it is sustainable.

Let us compare two entrepreneurs who both manufacture wine. Let’s call one Vien and the other Bino.

Vien brews the wine in several batches and patiently waits two or more years for the first batch to age and mellow and be ready to be sold. Once the first batch is out in the market, the next batches are ready to be sold in quick succession. In time, Vien becomes rich and famous for quality vintage wine. His patience and long-term orientation has paid off.

Bino, on the other hand, is not as patient. He lets the wine age for only a few months and then passes it off as aged wine. As a result, he earns a lot of money at first but just as buyers get to know his product for the sub-quality wine it really is, Bino finds he can no longer sell it and he is eventually forced out of business.

There are people who go for the here and now and those that put more importance on the long-term future. The first tends to become quick buck operators like Bino. The second type of business people are disposed to become future oriented like Vien. Clearly, it is the second who are imbued with genuine entrepreneurial spirit – the kind that endures and contributes to building the community and the country.

Another dimension of time orientation is when the entrepreneur is conscious that timeliness or right timing is important in doing business. Products must be sold at the right time. The pan de sal must be ready very early in the morning in time for breakfast. Christmas decors and holiday hams must be sold during the Christmas season and not in February. Flowers can be sold all year round but a bountiful stock should be assured specifically for two months: February (Valentine’s Day) and November (All Saints Day).

Adapted/updated from “Introduction to Entrepreneurship” published by the Small Enterprises Research and Development Foundation (SERDEF) and the U.P. Institute for small-scale Industries (UP ISSI)

The SERDEF is a resource hub for micro, small and medium entrepreneurship. For more starting and improving a business tips, tools for beginners, success stories, industry news, small business advice, and other small business articles, check out its website at http://www.serdef.org.

Photo: “Foppiano Wine Barrels” by G. Frank Peterson, c/o Flickr. Some Rights Reserved