At a certain time growth starts to plateau which is a sign of Maturity. This is a very dangerous time for a business. This is the point at which the owner becomes comfortable with their achievements. Their business is running smoothly.
While sales have started to plateau, their profits may still be increasing because they are getting better at doing what they do. The owner has decided that their business is at the right size, they don't want it to grow larger. The owner is in their comfort zone. They see opportunities to increase their profits incrementally, but they see no need to make significant changes in their business. In fact they are somewhat afraid of making significant changes. After all, if it ain’t broke, why change anything?
The reason this is a dangerous time is that the owner has taken their foot off the accelerator, and is starting to coast. You can never coast in business. The only time you can coast in business is when you are going downhill.
The success of your business is dependent on constant renewal. New products and services, new customers, new ways of delivering your service even if you don’t want to grow, as your existing clients start to drift away and new competition enters your marketplace.
If you don't invest in constantly rejuvenating your business, your business will be in decline. At first it might still appear to grow (from the momentum of earlier efforts). But after a time, the sales start to plateau. You start to lose some of your older customers. It becomes more difficult to get new customers.
But in your sector, some seem to survive and prosper- what have they done? They have made a commitment to take make their business survive. This does not necessarily mean to grow, but if they did nothing it would decline. They are looking at ways of keeping their business fresh and replenishing their assets.
It this stage a business needs to review their whole strategy. Is their business model and market strategy sustainable? Will the owners’ long term goals be achieved by continuing the same way?
Read about a Small Business Case Study of a business at the Maturity stage of the Business Lifecycle.
Empower Business Solutions has a number of programs designed for Businesses at Maturity.
A Business Coaching Program designed to give your business a makeover in just 90 days.
Implementing a Business Management System turns your business into a Saleable Asset. This is the principle behind all franchise systems. Whether you want to franchise or not, it lifts the barriers to expansion, especially if the barrier is fear of losing control.
At Maturity the issues are like lt to be more complex. If you are unsure which of these program is most appropriate for you, request a Complimentary Business Evaluation and find out how to:
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When I read your book, I thought you were writing about us.
At some points I laughed, pointing out to my husband - this is what you do, and other times, I felt like crying. I finally understood what was happening in our business and what we needed to do..
Sally & Michael
Business Owners
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