Expand the Life of your Business
Have you ever thought about where your business is in its lifecycle? Maybe you never thought of it as having a lifecycle?
Let’s look at the life cycle of a business and how to get the most out of each cycle while also extended the lifespan of your business.
The four different stages of a business life cycle are:
We’ll talk a little about what each of these cycle’s means and how they can each help expand your business’ lifespan.
For those of you familiar with Michael Gerber’s E-Myth series, this is generally consider the Technician phase – when you as owner are the technician – that is the person who delivers the service or produces the product. At this point, the relationship between the business and the owner is that of a parent and new baby. You are the proud parent and the fledgling business your much loved offspring! There is an impenetrable bond that is necessary to determine the path your business will follow.
The key here is to know your business must grow in order to flourish. You cannot stay in this stage forever.
As the business grows, you must recognise that it can’t just depend on you (the technician). During this stage you need to start bringing your support staff together to delegate to and allow growth to happen. In other words you are the Manager in E-Myth terminology. One thing you’ll need to do is to “replace” yourself as the sole technician – you will need to let go the reins to someone who also brings a certain level of technical or specific skill or experience. This cycle is really all about the manager developing processes and equipping the business with the right mix of ability and expertise. At this stage you need to start planning for the longer term and starting to build a relationship with your entrepreneurial self to plan for the future.
There’s a point in every business when the business explodes and becomes truly chaotic. We’ll call these growing pains. Because it relates to growth it’s a good problem to have, but it is a problem nonetheless! In your business you are likely to be faced with a number of choices – choices that only you can make, and choices which will determine your future in the business:
Avoid growth and stay small
Go broke – let it fail!
Push forward into the next cycle of growth
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. In E-Myth terms, you are acting as Entrepreneur – you need to keep an entrepreneurial perspective in order to push your business forward.
You see how all three of these cycles are connected and depend on a strong foundation for each one of them for your business to be and continue to be successful. All three of your key roles must also work together to work through these cycles (technician – manager – entrepreneur).
If you’re having trouble putting together your business life cycles and figuring out which of the key roles you fit into and just what you should do to take your business top where you want it to be, why not speak to us?
We’d love to help you.