Episode 1: The Lifecycle of a Business
Every business experiences what’s known as the lifecycle, and each phase of the lifecycle has unique challenges and opportunities.
When you understand these unique phases, you can avoid the pitfalls and take advantage of the opportunities to grow a business that’s sustainable over the long term.
Part 4: The Decline, Rebirth & Death Cycles of a Business
Business Lifecycle: The Decline, Rebirth & Death Cycles of a Business
This collection of phases may as well be titled “The Good, The Bad, and The Ugly,” with Rebirth being “The Good,” Death being “The Bad,” and Decline being “The Ugly.”
After a period of stability and success, a company may encounter a decline in revenue and profits. The decline can be exacerbated by an owner’s unwillingness to invest in people or technology, otherwise raiding the piggy bank and withdrawing their equity.
In this stage of your business:
- Decreasing sales, plunging profits
- Survival mode, cutting losses, exiting the business
- Searching for new opportunities & business ventures
You can avert this stage with innovation. This phase’s challenges include:
- Rejuvenating product line
- Re-evaluating customer needs & value provided
- Protecting cash flow
- Exit strategy
From the Decline Stage, your business will either move into Death or Rebirth.
The Death Stage is marked by insolvency, bankruptcy, and the business having no value. Yikes! The challenge is to reposition/rethink markets, customer needs and product offerings, and/or to start over.
The Rebirth Stage is marked by a successful turnaround effort, financial restructuring, new leadership, strategic focus, and process improvements. Challenges with rebirth include:
- Re-gaining traction in market
- Re-building sales
- Re-invigorating employees
- Rebuilding financial strength & equity value
- Re-formulating exit strategy
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A show for business owners who are tired of just working in the nuts and bolts of their businesses and ready to work on the business itself from a big-picture, growth-oriented, strategic perspective.