Renew/Maintain/Exit
✓ If revenue has declined for several consecutive quarters, you probably entered the declining phase. Take action and start looking for ways to innovate.↛
✓ Most businesses don’t begin investing in the renewal phase until they are already in a state of decline.↛
✓ You might need to modify your current offering to meet the needs of new customers or innovate a completely new business.↛
Maturity/Shake-out
✓ You are probably able to take regular dividends out of the company.↛
✓ Many mature businesses have a strong cash position and grow through acquisition or spin-offs of other product lines.↛
✓ Enjoy this period but be on the lookout for signs that you need to start making a change.↛
✓ You’ll be able to decide to cash out or reinvest in the business to further growth and sustainability.↛
Growth
✓ The growth phase will require investment.You will have to give back profitability to fund growth or seek outside investment capital either through investors or debt.↛
✓ Turn your focus inward as you build teams and hire higher-level people to run operations.↛
✓ With investors, you give up equity and gain advisors. With debt, you retain all your equity but will likely have to sign personal guarantees with banks to secure funding.↛
Startup/Launch
✓ You won’t have many processes and you should be tweaking your business model to get a sense of the market.↛
✓ Although it's an exciting time, it's where most businesses fail.↛
✓ The cash demands often mean you can only underpay yourself. Use this time to figure out a business model that allows for sustainable cash flow and consistent growth.↛
Your Cycle Starts here