Which Stage Is Your Business Growth Stuck In?
Growing one’s business is much like taking care of a plant. Understanding which growth stage the plant is currently in, what external factors can dampen or promote its growth, the extra stimuli that may be needed for the plant to grow at its optimum and what precautions should be taken- these are quite similar to the decisions that business owners have to make on a daily basis.
The reasons why you started your business in the first place do matter, but if you have your eyes on long-term growth, it is important to understand the life cycle that every organization goes through:
Simply Existing
It’s mindboggling when one realizes just how many companies stay in this stage for years before advancing to the next level. As the name suggests, this is the stage when an idea takes shape and a start-up is formed. The main focus at this point is to test the waters so to say in terms of product or service feasibility, building a customer base, getting the pricing right and acquiring funding. This is often called the ‘make or break’ period for a business because plenty of start-ups also tend to fold at this stage.
Surviving & Growing
This stage works as the launchpad for further expansion and growth. At this point, a product or service that has a loyal customer base has been established and there is good potential to attract even more customers. The prime focus now is to start earning a profit so that the business is able to sustain itself. Now is the time to stop being a one-man or a one-woman enterprise and to form a team so that responsibilities are delegated properly.
Success Or The Maturity Phase
Most businesses remain in this phase for many years and crucial decisions with regard to expansion need to be taken at this point. The challenge remains to build a business that is thriving and not just surviving on a mini profit each month. A business at this stage is ripe for further investment if expansion is on the cards. It is important to keep adding new products or services so that more avenues for revenue are opened up.
Renewal Or Decline
Even if an organization has remained in the maturity phase for years, there eventually comes a point when it either has to reinvent or fold. Apple and Microsoft are two fantastic examples of brands that take reinvention and staying relevant seriously. Companies that fail to read the signs of the changing times and adapt are the first to fold. Brands like Kodak and Blockbuster had the potential to create the next wave in their respective fields but failed to interpret future trends. In this business cycle, adopting new policies, bringing in new leaders, revamping existing office culture and bringing the focus back on the company USP’s is crucial.
So, in which stage is your business currently in? Irrespective of how young or old your venture is, the right ideas and internal tweaks will go a long way in ensuring that your business is around for years to come.
