Each stage of business produces its own set of unique problems and opportunities. This blog will address the various stages and specific steps that you should take to ensure your continued success through each stage.
The stages of business are Survival, Stability, Success, Significance
This is the stage when you first launch your business. It is during this stage that you are most vulnerable and apt to go out of business. Be extremely careful during this phase. Deploy these action steps to ensure success during this phase:
- Make sure you have at least twelve months of working capital in the bank or access to capital through loans, lines of credit etc. The number one reason why a business goes out of business is under-capitalization.
- Hire a business coach who will be your point person and prevent you from making costly mistakes. At this stage, you will need a business coach to help you assemble your professional team of CPA’s and attorneys. you want them to help you to make sure that you have adequate insurance protection, business plans, access to capital and find the right site for your business. You will need help creating your infrastructure, negotiate leases and build-outs, hire and train the right staff and create your marketing campaigns. If you are buying an existing business, you will need help with the evaluation, negotiations and help you assemble the right professional team for the buy and transition.
As you see there is a lot involved. Mistakes will lead to a loss of time and dollars. Two things that no new business can afford. Avoid mistakes like the plague! Do not try to do these endeavors without the aid of a team of professionals.
This is the stage where your income is fairly predictable and all of your bills are paid. Typically with a new business, this occurs around the twelve-month mark. However, the time can be greatly shortened or lengthened depending on the individual circumstance. Typically no business will survive past eighteen months without at least breaking even. This stage has to be managed very carefully. Common mistakes are expanding too quickly and mismanagement of funds. Deploy these action steps to ensure success during this phase:
- Work with your coach to determine where the blocks and gaps are now. Is the problem needing to hire more people? Is your infrastructure not able to keep up with demand? Determining where the problems are and fixing them early ensures continued smooth growth.
- During this phase, you want to start building up cash reserves. We recommend setting up an emergency fund that is equal to twelve months of business and personal expenses.
- Regular quarterly meetings with your CPA are important during this phase and all the others to follow. Tax planning becomes crucial to maximizing profits.
- Setting up retirement plans should happen during this phase. Remember the likelihood of Uncle Sam providing you with a comfortable retirement is slim to none. The earlier that you plan for retirement the more economically stable and happy you will be.
This phase, in my opinion, is the most fun! This is where all of your bills are paid. You are making the maximum contributions to your retirement plan. You are able to take regular vacations. You are able to drive the car of your choice. Life is good! Deploy these action steps to ensure success during this phase:
- Manage your health. Success does not come easy. How much sleep did you lose pulling all-nighters? How much junk food did you fuel your body with during the other phases? While your health should have been managed during all stages, it is typically the one neglected first. Now is the time to reclaim your body and your health. Work with your business coach to set up goals and action steps. Hire a personal trainer or if you’re self-disciplined enough join a gym and GO to it.
- Speak to your attorney about setting up trusts or other asset protection vehicles
- Get your head space right. This is the stage where divorce runs rampant as well as anxiety rears its ugly head. Since I have a medical back ground we are able to help our clients specifically by helping them create great eating plans as well as making them aware of negative health signs and symptoms.
- Get annual physical exams and blood work
- Diversify your investments. Now is the time for your money to make you serious money. However be aware and stay clear of getting rich quick schemes. They don’t work and never will. Work with someone to Create a plan and portfolios to meet your goals.
Only 1% of all business owners get to this stage. This is where the Bill Gates and Warren Buffet’s of the world live.
- Work with your advisers to establish philanthropic endeavors
- Work with your attorneys to make sure that you have adequate asset protection
- Give back to the community and mankind by creating opportunity for others
- Create your legacy
As you go through the different stages of business be acutely aware of your needs. Make sure that you always have a great team of advisers to help you, guide you, nurture you, and prevent you from making mistakes. Advisers should be neutral so they help you make non-emotional business decisions. Creative Coaching, LLC has been successfully coaching clients just like you for the past fourteen years through all of the stages of business. We have been trailblazers in the industry being the first company to offer no long-term contracts and a money back guarantee.
Our client’s income has grown on average 165% since 2008. In 2016 alone they were up on average a whopping 44%! We get these results with our clients because we teach step by step strategies, coupled with world-class support, coupled with performance and mindset coaching. In all the years that I have been coaching, I haven’t seen one CEO that executed the steps above and that utilized our procedures that failed to be more successful.