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The 3 Major Stages Your Business Must Survive

After doing the article illustrating how and why only 4% of new businesses do celebrate their 10th birthday, I promised to show you the 3 major stages of a business whose transitions you must keenly watch. And here is the promise!

These stages will bring you to light why most businesses around you operate the way they do; with no or minimal growth and facing the same challenges year in year out.

 

Stage #1: Infancy

Usually known as Joe’s place, the business is the person; it’s a one man show. This means if Joe doesn’t show up, the shop (or the business, for that matter) won’t run.
At this stage, Mr. Godfrey says, your customers are not buying your business’ ability to give them what they want but your ability to give them what they want.

This is a common scenario especially with start-up business when the business has not expanded its customer base to necessitate additional manpower, or you as the owner lack enough funds to deploy employees.

 

 

Stage #2: Adolescence

Due to the dedication and hard work usually experienced at infancy, the business grows. Our dear Joe can’t handle the workload by himself and thus he brings someone in to help with some work (mostly some technical work you don’t like doing).

This is the point at which you can accurately measure in what ratios do you posses the 3 skills needed to run a business.

                            [Recommended: 10 Simple Ways Of Nurturing Customer Loyalty]
 
Honestly, many businesses are stuck at adolescence stage. Since most managers (owners) are 70% technical, 20% managerial and 10% entrepreneurial, they can’t give up the technician in them to give room to do the entrepreneurial part. So basically your business is in the “advanced infancy” because, again, it totally depends on you. (For the required 3 business skills and their right proportions, click here)

Mr. Godfrey advices that one sure thing is, your business can’t grow if it’s fully dependent on you.
Toward the end of this stage, a crisis occurs: the business pushes you beyond your comfort. Two things are bound to happen: the business either grows to maturity or fails.

 

Stage #3: Maturity

This is the stage only the 4% survive.
 
At maturity, your business no longer depends on you. It exists on these 3 pillars:

1. Systems
2. Policies
3. Procedures

The three aspects are laid at the latter stages of adolescence to aid a smooth transition. The quality of management systems, policies and procedures developed will determine the height your organization will soar.

 

Conclusion

An organization has two sides: the outside which is made up of the owners/shareholders, and the inside which comprises of the CEO, Heads of Departments and other employees. I hope by now you understand that you don’t need to do everything by yourself, and, in fact, you can’t even if you wished (unless you desire failure). Therefore, with the help of other shareholders, select members of the inner circle who’ll run the business to greater heights of success. At this stage, all that counts are entrepreneurial, and managerial skills.

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