In this week’s blog article, I’m going to talk about the life cycle of a business and how to get the most out of each cycle while also extending the lifespan of your business.
The four different stages of a business life cycle can be paralleled with the following real life stages:
We’ll talk a little about what each of these cycles mean and how they can each help expand your business’ lifespan:
This is generally consider the technician’s phase, which is the owner. At this point, the relationship between the business and the owner is that of a parent and new baby. There is an impenetrable bond that is necessary to determine the path your business will follow.
The key is to know your business must grow in order to flourish. You obviously cannot stay in this stage forever.
In this stage, you need to start bringing your support staff together for purposes of delegation and to allow growth to happen. The first line of defense is your technical person as they need to bring a certain level of technical experience. This cycle really belongs to the manager though. The plan stage needs to start and a relationship should be built with the entrepreneur in order to plan for the future.
There’s a point in every business when business explodes and becomes chaotic. This is referred to as growing pains. It’s a good problem to have, but a problem nonetheless. You are often faced with a number of choices:
Avoid growth and stay small
Push forward into the next cycle
The last cycle is maturity, however this doesn’t mean that you are at the end of your business’ life. Your passion for growth must continue in order for your business to succeed. You need to keep an entrepreneurial perspective in order to push your business forward.
You can see how all three of these cycles are connected and how each depend on a strong foundation for your business to continue to be successful. All three of your key roles must also work together to work through these cycles.
If you’re having trouble putting together your business life cycles and figuring out which of the key roles you fit into, just contact us!