Today we will explore 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 are:
- Growing Pains
We’ll look at what each of these cycles mean and how each of them can assist you in expanding the life span of your business.
This is generally considered the technician’s phase, which is the owner. At this point, the relationship between the business and the owner is that of a new baby and a parent. There is a necessary impenetrable bond that will determine the path your business will follow. Never drop your baby.
The key is to recognize that your business must grow in order to flourish. You cannot stay in this stage forever.
In the adolescence stage you must start delegating to your support staff and allow growth to happen. The first line of defense is your technical person as they need to bring a certain level of technical expertise, however this cycle really belongs to the manager. The planning stage must commence, and a relationship should be built with the entrepreneur in order to plan for the future.
There’s a point in almost 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 the following choices:
- Avoid growth and stay small;
- Go broke;
- Push forward into the next cycle.
The last cycle is maturity, though this doesn’t mean the end of your business. Your passion for growth must continue in order for your business to succeed. You need to maintain an entrepreneurial perspective for your business to continue pushing forward.
It is unmistakable that all four of these cycles are connected and require a strong foundation for the continued success of your business. All three of your key roles (technician, manager, and entrepreneur that were highlighted in my previous post) must also work together to successfully navigate these cycles.
If you’re having trouble putting together your business life cycles and figuring out which of the key roles you fit into, don’t hesitate to reach out to me for assistance.