Was there ever a time when you implemented a strategy that didn’t work for your business?
Were you wondering why it worked for someone else? If you hold an assertion that every business needs the same strategies to flourish, chances are you aren’t the only one who thinks this way. Although many small business owners share this viewpoint, it is far from what actually works. The big question then is how to determine what business strategies are right for you.
The first step to winning in the world of business is knowing what stage or phase your business is currently in. There are five phases in a business life cycle – Startup/ Launch, Growth, Shakeout, Maturity, and Decline.
Startup/ Launch
If you are thinking of a product or service you would like to offer or considering a name for your business, you are at the first stage which is the startup stage. A lot of new ideas are beginning to take shape and you are still in the process of creating your corporate structure at this point. This is perhaps the most crucial stage because as exciting as the idea of starting a business can be, it’s where most businesses fail.
Growth
At the growth stage, your customer base begins to increase steadily. But as you acquire new customers, you also need to strategize how you can keep the old ones happy and satisfied. This is also the stage where you firmly establish your presence in the marketplace and build high-performing permanent teams. You will also need to make certain essential investment decisions.
Shake-out
Concerns over growing competition usually manifest at the shake-out stage as new competitors enter the market. This is also the stage preceding the maturity stage. A key question here is how you can stay noticed amidst the heightened competition.
Maturity
The maturity stage usually demonstrates your security as a business and your consistency as a brand. Depending on how well you satisfy your customers, you will usually experience a lot of repeat business and opportunities for advanced growth. This is also the stage where you have figured out how to over-match competition with your unique product or service offering.
Decline
The decline stage is the final stage of the business life cycle. Usually, most businesses can’t seem to figure out if they are at the decline stage or not. This stage calls for unparalleled innovation to rejuvenate and re-present your business offering. Accepting that your business or your market is changing, is usually ideal at this stage.
Knowing the stage of your business is undoubtedly essential for your success. More importantly, finding the right team to partner you through these various stages will enable you to make well-informed decisions that are not based on your intuition or feelings.
