Short term focus is crucial for several reasons. First, it allows a company to respond swiftly to market dynamics and consumer behavior. Businesses can capitalize on emerging opportunities or mitigate risks that could impact the company's immediate performance. Second, a short term focus can boost employee motivation by setting achievable targets and recognizing quick achievements. Lastly, it can be vital for financial health, particularly for startups or businesses facing liquidity issues, by providing immediate returns and improving cash flow.