To succeed in business planning, it is important to set both long-term and short-term goals. Long-term goals provide a vision for the future direction of the company over 5 years or more, while short-term goals break long-term goals into smaller, time-bound objectives to monitor progress. Both types of goals should be specific, measurable, achievable, realistic and time-bound. Setting enduring values-based goals provides stability during periods of change, and failure to achieve goals is part of the learning process towards ultimate success.

1. Well, it depends on the context. While you are working on short terms goals, you
also need to develop a pipeline about the future. So I prefer both as a correct way
to make a decision regarding a business or any other type of planning mechanism.
Alternatively you can say five year plan, to well give u vision of what your goals are
and what it takes to achieve those goals you have put.
In a business aspect, setting goals is an integral part of operating and growing your
business. You can create milestones or targets to help monitor progress against
metrics you have designed within your business vision.
Typically, that vision expresses the long-term target for the company and provides
a fixed point on the horizon. So this means you will in the long run need both long
term and short term goals in order to succeed in any venture. As plot your
Business plan for any particular initiative, break them into smaller parts so that
you can monitor the progress more effectively.
Failure to achieve goals is simply a learning process, and ultimately, another step
towards success.
When you set your business goals, it is important that you base them on enduring
values. Given the dynamic environment businesses operate in, value-based goals
provide stability in times of rapid change. To be truly effective, follow the principle
of SMART to increase your chances of success — make both short-and long-term
goals Specific, Measurable, Achievable, Realistic, and Time-Bound.
In a business perspective, long term are generally more aspirational in nature and
tend to relate to a period of five years or more. These are characterized by some
degree of measurability and help set the direction for your company so you can
visualize expected performance levels.
You have to identify the categories that best represent your vision and focus on
them. Your business goals will only be effective once you have a clear vision of what
you want to achieve, and how.

2. Short-term goals tend to be objectives that lend even more precision to your
business plan. They are more specific with regard to what has to be done within a
given time frame. Issues related to how, how much, and when have to be resolved
to meet these.
Typically, short-term goals arise from long-term goals and your business vision
statement. They are the foundation for taking action and thus you should set them
in such a way that they will have the greatest impact on meeting long-term goals.