phases of business growth
The Phases of Growth
Is your business growing as you want it to? Did you know that all businesses go through similar problems when they grow?
Have you seen your business go through a cycle of growth and then contraction? Eg £1m to £2m sales and then back down £1m
Or have you seen your business year on year stays at the same sales turnover per annum?
This is fairly typical and happens often.
So why does this happen?
The process of growing your business can be difficult and whilst some entrepreneurs can get through these phases others don’t and get stuck.
Every time you reach certain points in the evolution of your business you will have to do something different to move to the next level. These are transitional points where you business has to change, these may vary from business to business depending on its type.
Each time the business goes through these points you will need to employ better quality team members, improve your systems, develop your sales or marketing, control your finance more efficiently to evolve your business to the next level.
It is all down to whether you, as an entrepreneur, have the knowledge or experience of how to get the business to the next level whilst also growing its profits (assuming the business is making profit).
The reasons ‘why’ your business stays stuck and doesn’t evolve is mainly because of the fear you experience making the decisions to implement change. There will be disruption to the current structure of your business, and this may affect its profitability.
If you haven’t got the knowledge or experience of growing a business to the next level it can make the whole experience fairly traumatic. This can result in the business staying where it is, doing what it has always done and making it susceptible to competition. This puts profits under pressure, resulting in you as the owner of your business working long hours as you can’t afford to employ the people you need. This has the adverse effect putting you and your relationships under pressure.
You can find out the effect of other key entrepreneurial factors by understanding The Entrepreneur's Wealth Paradox, [PLUGIN:PAGE_LINK_CUSTOM:20070423022827_10_10]The Entrepreneurial Mindset, The Business Cycle and The Entrepreneurial Myths.
For the businesses which continue to grow through the growth phases the entrepreneurs will have the knowledge, experience or the outside input to get past each growth phase barrier quickly without affecting the profits of the business
Even so the entrepreneurs will still have to address the challenges at each barrier.
Would you like to find out more about how The Entrepreneurs Coach can help you contact us by filling out an enquiry form
phases of business growth
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