When it comes to starting a business, it is important to know that there three stages or business cycles owners must execute in order to create a sustainable and successful business.
Stage 1- Launch
In this stage, the business starts out from the owner’s grand plans and big idea. The owner is bursting with energy and excitement that at last, the business is off the ground. He or she is also usually proud of his or her accomplishment but also nervous and hopeful.
Stage 2: Trough of Reality or Disillusionment
After the excitement and high expectations during the launch stage, the business may reach a stage characterized by waning interest in the technology or business, scaling back of expectations and some technology failure.
On the part of the business owners, it’s the stage when everyone faces the reality of running the business and the responsibilities that go with it. There are bills, salaries and taxes to pay. Sometimes, the business takes up so much time that the owner has no other activities outside the business. The business starts to be like a chain that limits the owner’s activities.
Stage 3: Momentum
This is the stage when business turns around. Business picks up and everything falls into place. There are regular customers to keep revenue generation easier.
The business can operate on its own. The staff is reliable and comes up with a lot of good ideas. Systems are in place that makes it easier to manage the business even remotely. At this stage, the owner can afford to spend less time in the business.
The business now moves on its own momentum.
How to get to the momentum stage
It’s difficult during the reality stage but owners should stick to the business continuously. Hiring the right persons and searching for new methods or tools to improve efficiency and reduce waste is a must.
The business at the momentum stage has developed an adequate and stable customer base. Experience from the earlier lifecycle stages has identified what’s wrong and what’s right for the business.