Knowing where you are at in the life cycle of your business is an important if you expect to make good business decisions. It is also very important when buying a business.

1. Development Stage: This is the first stage of a business where it grows from concept to start up. Think of your business like a baby. In the beginning it needs a lot of care and feeding. Many of the frustrations you experience at this stage include finding the right employees, getting the financing you need, to getting your product or service just right.

2. Growth Stage: Surviving the start up period the business is now focused on gaining momentum and acceptance in the marketplace. Often this is occurs with a large growth in sales and profits. This growth is often accompanied my several management problems which need to be resolved before moving ahead to the next stage of the business development cycle. Some of the management issues seen at this stage are cash flow problems, lack of sufficient financial controls, lack of having the right staff in the right seats and an unbalanced capital structure to cope with the increased financial pressures.

3. Maturity Stage: The firm in this stage of development has been successful and stable for quite some period of time. They have perfected their product/service and have carved out an enviable position within the industry. The business owner is starting to feel secure financially and is enjoying the fruit of his laboring through the start up days. Testing and perfecting its services/products while dealing with limiting the impact of competition are in the past. Lack of cash flow and profits are a distant memory and the business has become the 'cash cow' that you've always dreamed of.

4. Disruption & Decline Stage: Disruption in business activity can range from increased competition, an economic downturn, a significant change in consumer demand patterns. The business si spending more than it brings in and unless something is done quickly to turn things around, it is just a matter of time until the business fails. At this stage of the business life cycle the business, the owner, and the staff need an extreme makeover. More than just strategy the focus has to shift to stabilizing the business and stop the bleeding. Then the business needs to be completely rebuilt to create a value added offering that rekindles consumer interest and demand for your products and services.

How Long Does it Take a Business to Move Through the Life Cycle?

Just like human development a business grows through progressive stages of development. How long a business spends at any particular stage varies greatly. In my experience the length of time any entrepreneur spends at any one stage depends on a number of factors including:

Capacity: Having time to relax, think and review recharges the soul and increases your personal capacity. Set aside time just for yourself and think about:
Having adequate financial resources enables business growth. Do you have adequate financial resources? If you did how would you spend the money?

Physical. Do you have adequate office, storefront, and storage to achieve your goals? What would need to change to increase your physical capacity?

Attitude determines Altitude. How can you increase your Emotional & Intellectual capacity? What books could you read? Have you been thinking of getting some consulting or coaching support? What has been holding you back?

Opportunities: When it comes to discovering, uncovering, and exploiting business opportunities how would you rate your actions in the last 6 months? What would you need to do if you wanted to take advantage of the opportunities in front of you?

There is a very fine line between a "Distraction disguised as an Opportunity" and a true "Opportunity". Both can promise a financial return. A true distraction tends to 'feed' your ego and it seems too good to be true. It is often accompanied by easy money and a lack of adequate research. One of the most destructive elements of a distraction is that they often take you away from your core profit center.

Whereas, a true opportunity will build upon your strengths and has proven profitability where the financial return is clearly defined. Best of all you remain in control of your business.

Motivation: How would you rate your level of desire to achieve your goals? Do you find yourself making excuses or saying that you are tired? Stop letting yourself off the hook. Either change the goal or get down to business. Without a burning desire you will not achieve nearly as much as when you are excited, focused, and passionate.

Get clear about what you want. Answer two questions. What do I want more of in my life? What do I want less of in my life? Do this for each of the major areas in your life i.e. Personal, Business, Financial, Emotional, spiritual, Physical.

Environment: Identify the external and internal influences in your business and personal life. Are there toxic relationships in your business or personal life? How are they impacting your ability to perform up to expectations? It takes a lot of energy to try and ignore your true feelings.

Confront how you feel about your current situation and do what you need to do to move forward.