If every business owner and CEO considered where the business is in its life-cycle, many poor decisions could be avoided. The business life cycle starts the day you incorporate and is generally followed by an initial growth stage as sales are made.At this stage certain strategies then support the business to get to the next phase, the expansion stage and moving into new markets.Once at the mature stage of operation, things are stable until the eventual decline as consumer interest in the products and services wane and key employees depart.
Your strategic plan is greatly influenced by the stage of the business life cycle, and growth of sales over time is the general way to chart the life cycle. Typical growth strategies include market penetration, market expansion, product expansion, diversification and acquisition, withdrawal and exit. Understanding these options and keeping them in mind will help your business explore new ideas, innovation and gaps in the market where you may have an opportunity. It will also help guide market exit and product withdrawal. The key to any successful growth strategy is to be deliberate with a plan built on implementation, testing and checking progress (based on your goals and success measures), and acting on the outcomes (tweaking, redirecting, refining) to continue the planned growth process.It’s not rocket science but a simple business planning process pathway. By understanding the common problems arising in business development stages, you improve awareness about the issues and challenges that impact the growth of your business. Innovative initiatives can test new ideas and new markets without losing focus on the core business, no matter how large or small your business. Reduce the financial and brand risk of trial and error and look at how to develop a deeper understanding of your business and the life cycle stages so you can be one step ahead.
Be excited about growing your business! Insight by Lyn Hawkins – Director of Business Women Australia Join Pauline and I at the Mandurah Success Circle on June 16 for Opportunities for Business GrowthBook early as seats are limited.