Business Article

How Evolved Is Your Business?
(The Seven Stages of a Business)

By Pam Butterfield

Stage Seven: Envisioning the End

“The End” occurs when the founder begins dreaming about just closing the business instead of selling it.

Founder’s mindset: Characterized by extreme fatigue, boredom, and burnout. The founder has simply had enough and may be lacking the physical, mental or financial resources to affect a business sale.

Management practices: The management practices will vary, depending upon where the business is in its lifecycle.

Planning mechanisms: Again, the maturity and effectiveness of the planning mechanisms will vary, depending upon where the business is in its lifecycle.

Financial considerations: If a business owner is considering closing his or her business, it is essential to understand the potential profits and losses on the table at the time of closing.

Products and services: The product/service lineup may have withered due to inattention and neglect. Sales may have suffered, as a result.

Key challenges at the boundary: N.A.

Conclusion

As you can see, businesses are like people. They are born, they live and at some point, they die. It is essential, as a business owner, to know what you can expect at each stage. By knowing and planning for these expected challenges, you can reduce wasted time and resources fighting fires by being more proactive. In today’s climate of constant change, being proactive will increase the likelihood of your business’s success today and viability tomorrow.

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