Why paying attention to where you are in the business lifecycle will help you - part 1
Why paying attention to where you are in the business lifecycle will help you - part 1
Businesses form, develop, mature, reinvent or die. Different stages of the business life cycle are associated with different risks and expectations and they may need different management styles and strategies to meet the needs of their customers.
Many businesses, that live long enough, typically start with an entrepreneurial seat-of-the-pants management style, and then move onto a stable administrative infrastructure and well-planned and managed development.Do you know where your business is in the business cycle? Are there indicators that your business is moving from one phase to another; and, if so, what are these indicators? How are you adjusting to the business cycle in terms of your vision, activities, locations and resources?
Over the years, I have observed that there are typically 7 stages in the business life-cycle and I will share these with you over 3 articles. In the first one, Ill discuss the embryonic and start-up phases; followed by the growth and maturity stages in the 2nd article. In the final one, well look at expansion at exit phases. I hope that youll join me for all 3.
Think about the life-cycle of your business as a long journey. Your business needs will change significantly at each new stage as it continually experiences and undergoes change. Over time, it will go through various stages of the business life-cycle.
Learn what upcoming focuses, challenges and financing sources you will need to succeed.A business goes through stages of development similar to the cycle of life for the human race. Parenting strategies that work for your toddler cannot be applied to your teenager. The same goes for your small business. It will be faced with a different cycle throughout its life.
What you focus on today will change and require different approaches to be successful.While most of your basic needs - accounting, assurance, recordkeeping, tax consulting and compliance - will be consistent throughout the life of your business, the requirements and level of sophistication for them will change as your business changes. Other types of needs: Recruiting staff, arranging finance and capital, upgrading internet and network technologies and retirement planning - will emerge.
I invite you to review each of the business life-cycle phases to learn how you (and when you) need to adapt to meet your needs as your business evolves.
1. Embryonic phase
The embryonic stage of your business life cycle is when your business is just a thought or an idea. This is the very conception or birth of a new business. Most businesses at this stage will need to overcome the challenge of market acceptance and probably pursue niche opportunities. Do not spread money and time resources too thin.
At this stage, focus is on matching a business opportunity with your skills, experience and passions. Other focal points include deciding on business ownership structure, finding professional advisors, and business planning.
Early in the business life cycle with no proven market or customers, the business may rely on cash from owners, friends and family to fund it. Other potential sources may include suppliers, customers and government grants.
2. Start-up phase
Your business is born and now exists legally. Products or services are in production and you have your first customers. If your business is in the start-up life cycle stage, it is likely you have over-estimated money needs and the time to market.The main challenge is not to burn through what little cash you have.
You need to learn what profitable needs your clients have and do a reality check to see if your business is on the right track. Start-ups require establishing a customer base and market presence along with tracking and conserving cash flow.
Funding is often sourced from the owner, friends, family, suppliers, customers, or grants.When embarking on a new business or venture, the journey ahead is filled with opportunities and obstacles. The choices you make in the start-up phase of your business can dramatically affect its future. Choosing the right business entity, accounting methods, filing business registrations, acquiring capital, complying with tax regulations and selecting the most appropriate information technology systems are all critical.
My next article in this series will look at the characteristics of businesses that have entered the growth phase, moving into maturity. Join me in a couple of days.
Why paying attention to where you are in the business lifecycle will help you part 1 - To learn more about this author, visit Mark Gwilliam's Website.
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Introduction
Businesses form, develop, mature, reinvent or die. Different stages of the business life cycle are associated with different risks and expectations and they may need different management styles and strategies to meet the needs of their customers.
Many businesses, that live long enough, typically start with an entrepreneurial seat-of-the-pants management style, and then move onto a stable administrative infrastructure and well-planned and managed development.Do you know where your business is in the business cycle? Are there indicators that your business is moving from one phase to another; and, if so, what are these indicators? How are you adjusting to the business cycle in terms of your vision, activities, locations and resources?
Over the years, I have observed that there are typically 7 stages in the business life-cycle and I will share these with you over 3 articles. In the first one, Ill discuss the embryonic and start-up phases; followed by the growth and maturity stages in the 2nd article. In the final one, well look at expansion at exit phases. I hope that youll join me for all 3.
Think about the life-cycle of your business as a long journey. Your business needs will change significantly at each new stage as it continually experiences and undergoes change. Over time, it will go through various stages of the business life-cycle.
Learn what upcoming focuses, challenges and financing sources you will need to succeed.A business goes through stages of development similar to the cycle of life for the human race. Parenting strategies that work for your toddler cannot be applied to your teenager. The same goes for your small business. It will be faced with a different cycle throughout its life.
What you focus on today will change and require different approaches to be successful.While most of your basic needs - accounting, assurance, recordkeeping, tax consulting and compliance - will be consistent throughout the life of your business, the requirements and level of sophistication for them will change as your business changes. Other types of needs: Recruiting staff, arranging finance and capital, upgrading internet and network technologies and retirement planning - will emerge.
I invite you to review each of the business life-cycle phases to learn how you (and when you) need to adapt to meet your needs as your business evolves.
1. Embryonic phase
The embryonic stage of your business life cycle is when your business is just a thought or an idea. This is the very conception or birth of a new business. Most businesses at this stage will need to overcome the challenge of market acceptance and probably pursue niche opportunities. Do not spread money and time resources too thin.
At this stage, focus is on matching a business opportunity with your skills, experience and passions. Other focal points include deciding on business ownership structure, finding professional advisors, and business planning.
Early in the business life cycle with no proven market or customers, the business may rely on cash from owners, friends and family to fund it. Other potential sources may include suppliers, customers and government grants.
2. Start-up phase
Your business is born and now exists legally. Products or services are in production and you have your first customers. If your business is in the start-up life cycle stage, it is likely you have over-estimated money needs and the time to market.The main challenge is not to burn through what little cash you have.
You need to learn what profitable needs your clients have and do a reality check to see if your business is on the right track. Start-ups require establishing a customer base and market presence along with tracking and conserving cash flow.
Funding is often sourced from the owner, friends, family, suppliers, customers, or grants.When embarking on a new business or venture, the journey ahead is filled with opportunities and obstacles. The choices you make in the start-up phase of your business can dramatically affect its future. Choosing the right business entity, accounting methods, filing business registrations, acquiring capital, complying with tax regulations and selecting the most appropriate information technology systems are all critical.
My next article in this series will look at the characteristics of businesses that have entered the growth phase, moving into maturity. Join me in a couple of days.
Why paying attention to where you are in the business lifecycle will help you part 1 - To learn more about this author, visit Mark Gwilliam's Website.
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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