Thursday was a day of firsts. The first time I’d seen my national football team reach the final of a major football tournament of course. But we also recorded our very first episode of our podcast “Let’s Get Down to Business”.

For obvious reasons, we thought we’d start by talking about startups – although there is something in there for any business at whatever stage of its lifecycle it is at.

Ultimately, the natural lifecycle of a business goes through four key stages:

  1. Adolescence, as it gets all the key building blocks in place that are needed to be able to do what it ever it does
  2. Growth as it starts to kick on, grow steadily or fast building market share, a customer base, a reliable team, a brand and a reputation
  3. Maturity as the growing pains start to ease and the business becomes more efficient
  4. Decline as the impact of failing to move with the times or adapt to change causes the business to lose market share and be overtaken by more determined and modern competitors.

Which stage is your business at?

Where do you want to be?

I imagine you’re aiming at Growth or Maturity.

If you’re at the adolescence stage, it’s learning from your mistakes. It’s getting the right advisers. It’s trying to find a Unique Selling Point in a crowded market. It’s struggling to get to your real break-even point.

Growth is more fun, and the value of your business will be increasing. But it’s fraught with stress and new challenges. You probably have to put in 50% more effort just to get 10% bigger.

Maturity is less stressful of course. And as a percentage of turnover more profitable. You’re polishing the diamond. You know what you’re doing. You’re efficient. Your biggest worry is how to invest all the profit you’re making. You’re thinking whether it’s time to cash in some or all of your chips and put your feet up.

Decline. It’s going on too long. It’s not adapting. It’s not noticing that technology, legislation or competitors are slowly making you obsolete. It’s ploughing on regardless and not accepting change.

We’re going to cover as much as we can over the next 6 months and beyond.

But first there’s Sunday night to get through. For once, we’re all on the same side (well most of us anyway).

It’s going to be emotional. Whatever the result.

Have a good weekend 🤞

Contact me today!

Malcolm Palmer

FCA

Managing Partner

01474 853856

Send me a message

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