In our last blog, we talked about the power of anticipation.
Leaders anticipate. Losers react.
Anticipation can be the difference between going under (like 90% of businesses do within their first 10 years) or building a massively successful company and creating the life you want.
To accurately predict and identify the problems that threaten your company’s continued growth and success, you have to know where you are now.
Why? Because certain business stages have predictable problems.
If you know where your business is now, you can anticipate problems and make adjustments.
There are 10 stages in the life cycle of a business. Like people, businesses are born, grow, develop, decline and die. However, unlike the human body, a business life cycle doesn’t have to be finite. A business can live and thrive indefinitely if it continues to reinvent itself and adapt.
Twinnings has been around since 1706. It is still thriving at over 300 years old. Colgate was started in 1806, and you probably have a tube of its toothpaste in your drawer right now. The key to longevity? Anticipate and adjust.
The life cycle of a business
Let’s take a look at the 10 stages and the common problems you might face in each stage.
1. Birth
This is the moment you take a risk—rent some space, take out a loan or make an investment. It’s exciting and terrifying. The biggest challenge is having the courage to take that first step.
2. Infancy
You are just getting off the ground. Infant companies take a lot of energy and attention. Cash flow is a constant struggle.
3. Toddler
Just like a real toddler, a business at this stage can get into a lot of trouble. Your company feels wobbly, perhaps lacking in purpose or vision. You’ve brought on new people, but they might not be the right people. You are wearing too many hats and doing too many things.
