Moment of Truth & Second Youth
Once a business has overcome its Growing Pains and started to implement systems that take out some of the stress, the business owner reaches a zone of comfort. Their business is running smoothly, and is generating reasonable profit. They have reached the cusp of their comfort zone, and a Moment of Truth.
They can continue as they are (“My business is just the right size for me, I don’t want it to grow any larger”), or they may choose, after consolidating their business, to take their business to the next level in size and profitability.
If they choose to “keep things as they are”, they move into the so called Maturity phase of their business which has its own risks.
Although they have achieved much just in reaching this stage, the business has started to plateau and different approaches and skills become necessary. What has worked in the past, will only deliver more of the same, at best. At this stage, the owner is looking for advice in driving their business forward. The plateau has become a ceiling.
At the Moment of Truth there is a realisation of the brutal reality of the Business Lifecycle and their business’ fate unless changes are made. They realise that the necessary changes will take them out of their comfort zone, and strategic changes are required to alter their future, to seek a Second Youth.
At this stage the owners are seeking a complete Business Makeover. This may mean a change in the business model, a change in their role in the business, a new marketing strategy and even a new way of service delivery.
The range of solutions are similar to those for a business in Growing Pains but it is recommend that you request a Complimentary Business Evaluation. as the issues are likely to be more complex. Find out how to:
Business in Second Youth
For business owners who have decided to continue to grow and acted to obtain the knowledge to break through the ceiling, their business achieves a Second Youth. This is an exciting time for any business.
Profits start to soar, but the owner is now playing in a whole new league. Larger industry players will start to notice the emergence of a new competitor, and start to take appropriate market action. The investment is now at a higher level, and there are more stakeholders in the business.
The owner in this phase is also aware the business cycle will repeat itself as the Second Youth gives way to new Growing Pains and approaches a higher Moment of Truth.
Owners in their Second Youth don’t claim to know everything, but they now know what they don’t know. They know the importance of advice. They use mentors, specialist advisors , and may even create an Advisory Board as their business expands into new areas.
As the value of your business grows, so does what is at stake. The need to protect this investment becomes critical.
When seeking a Second Youth for their business, significant changes in strategy are required.
Empower Business Solutions recognises this is a critical point in the life of any business, and works with many owners at this stage.
While strategy is as important in Second Youth as it is at the Moment of Truth, the critical importance of a well performing Business Management System at this stage can not be overstated, particularly if the goal is to create a Saleable Asset or some other exit strategy for the owners. The key benefit of a Business Management System is having a business that can run without you.
Request a Complimentary Business Evaluation. to find out the priorities for your business. Find out how to: