Running a business is much like having a child. You devote a large amount of time, energy and resources to ensure your business continues to grow and flourish. As with any child you expend these commodities because you want your children to have the best opportunities in life. In business you want the same opportunities, therefore it is important to assess the stage of your businesses life cycle and spend you resources accordingly.
The Five Stages of your businesses development and life.
1. Seed and Development:
This is the beginning of the business cycle; your business is in its infancy and requires a lot of time and attention, to take your idea from concept to reality. At this stage, you should garner advice and opinion on the potential of your business ideas from as many sources as possible: friends, family, colleagues, business associates, or any industry specialists you may have access to. Ultimately the success of your business will come down to many factors, including your own abilities, the readiness of the market you wish to enter and, of course, the financial foundation in place.
2. Start Up:
Your idea is starting to grow and it is time for your business to start crawling. This stage of the life cycle is the riskiest stage of your business as it is starting to take flight, and with that there are a lot of hazards, however the key is to keep pushing forward. Although you may fall, keep working at it and you will be walking in no time.
3. Growth and Establishment:
The business has learnt how to walk and is now standing on its own two feet. In this stage of the life cycle the business should be starting to generate consistent leads and a a stable source of income. Cash flows will start to improve as recurring revenue helps you to cover the ongoing expenses. This stage will see your profits start to improve and grow. It is essential that you start to come into your role as head of the company in this stage. While you’ll still be on the front lines often enough, you need to be aware of how you are expanding. Your highly qualified team needs to take over a great deal of the responsibilities that were previously tightly under your control. It is now your job to start establishing real order and cohesion, as you mobilise the teams with clearly defined and communicated goals.
4. Expansion:
You now have a good understanding of your business and the daily tasks seem almost autonomous, you have survived the terrible two’s and even the teenage years. It is now time to graduate and prepare your business for the next step of its life. In this stage, you will see rapid growth in both revenue and cash flow as the blueprint has now been established, but be warned about getting too comfortable. Use this stage of your businesses' life cycle to explore new opportunities and continue to nurture and build.
5. Maturity and Possible Exit:
All your hard work and devotion has paid off and it is now time to marry of your child or send them off on their own. At this stage of the businesses life cycle you need to decide if you want to start the process all over again or are ready to send your business off into the world to fend for itself. Whatever you choose, it is important to ensure you make the right decisions to protect your wealth and set yourself up for the next chapter of your life.
Whether it is time to grow or time to exit, we can identify the stage of your businesses' life cycle and would like to help guide you and your business in the right direction. Call us today on 07 3359 8333.