Transcript
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The Small BusinessLife CycleBy Charlie Gilkey
OutlineThe Stats
Intro to the Stages of the Small Business Life Cycle
Stage 0: The Aspirational Stage
Stage 1: The Entry Stage
01
02
03
04
Stage 2: The Growth Stage
07
06
05
Stage 3: The Crucible Stage
08
Stage 4: The Cruise Stage
The Way Ahead
>The Stats
The Stats
More and more people start small businesses today because technology, societal expectations, and the demands of life
favor small businesses.
The Stats23 million small
businesses in the U.S. account for 54% of all
U.S. sales.
Source: http://www.sba.gov/content/small-business-trends
Approximately 543,000 new businesses are started each month
The Stats
Source: http://www.businessinsider.com/infographic-the-state-of-us-small-businesses-3013-9
Half of all small businesses
survive 5 years or more.
The Stats
Source: http://www.washingtonpost.com/blogs/fact-checker/wp/2014/01/27/do-9-out-of-10-new-businesses-fail-as-rand-paul-claims
55%
66%
Small businesses provideThe Stats
of all jobs in the U.S.
and of all new net jobs
since the 1970s.Source: http://www.sba.gov/content/small-business-trends
In life and businessone sizedoesn’t fit all
The Stats
Are you going to make it?
The Stats
Most small business owners feel overwhelmed by all the information they get about
how to grow their business.
• One expert says one thing,and another says something else.
• Best practices from last year are obsolete this year.
• There is always more to do……than time and resources available to do it with.
In life and businessone sizedoesn’t fit all
The Stats
So what steps
to take right now?are right for you
The Stats
In life and businessone sizedoesn’t fit all
aIntro to the Stages of the
Trust us! We’re Awesome
Small BusinessLife Cycle
Intro to the Stages of the
Intro
Small Business Life Cycle Overview
Every stage has:
Challenges Strengths Inconvenient Truths Ways
Forward Moments Catalytic
Intro
Myth:The farther through the cycle you get ,the easier a time you’ll have growingyour business.
Intro
Fact:Every stage
will have challenges.
Don’t Give Up!
Intro
The Secret to Small Business Success
Take the right steps at the right time.
Stage O:The Aspirational Stage
Stage 0
The Aspirational Stage
“Whenever you see a successful business,someone once made a courageous decision.”
-Peter Drucker
Stage 0
people who want to start a business. The aspirational stage is for all
but they haven’t actually started.they daydream,
They read books,
Stage 0
ChallengesFiguring out what business to start
Making the leap
Overcoming the overwhelm around changing the world
01
02
03
Stage 0
Strengths
HopeEnergy Anything counts as a win
01 02 03
In life and businessone sizedoesn’t fit all
Stage 0
Your businessmight not work.
Inconvenient Truth
In life and businessone sizedoesn’t fit all
Stage 0
Just Start.
The Way Ahead
In life and businessone sizedoesn’t fit all
Stage 0
How do you start?What makes you come alive?
What are you natively good at?
Who fires you up?
What frustrations can you solve?
Pick one frustration and start generating
01
02
03
04
05solutions.
In life and businessone sizedoesn’t fit all
Stage 0
Catalytic Moment
You try something and it WORKS
even if it’s just a little bit.
Welcome to Stage 1:The Entry Stage
Stage 1
Stage 1 – The Entry Stage
“In the business world, everyone is paid in two coins: cash and experience.take the experience first; the cash will come later.”
-Harold S. Green
In Stage 1 you get a little traction, but don’t yet have a lot of customers, market share, or demand for what
you do.
Stage 1
Take on too much work, work with anyone willing to work with you, and say yes to anyone who shows
interest.
Stage 1
This is a natural part of the process of growing a business.
The Entry Stage is a Yes Stage
Stage 1
ChallengesHaving a little success does not mean you’ll have sustainable long-term success
Talking about what you do
Undervaluing what you do
01
02
03
You still have energy Small wins count
as huge wins because you are
#winning
Success High
“Fail fast and fail often.”
-Seth Godin
You’re not too big to fail
StrengthsStage 1
At this stage, there aren’t a whole lotta people watching.
In life and businessone sizedoesn’t fit all
Stage 1
You have no ideawhat you’re doing.
Inconvenient Truth
In life and businessone sizedoesn’t fit all
Stage 1
The Way Ahead
Focus on a beachhead offer
Test, fail, iterate
around your solution
01
02
03 Center your marketing
In life and businessone sizedoesn’t fit all
Stage 1
Catalytic Moment
You hit your firstHome Run
Welcome to Stage 2:The Growth Stage
Stage 2
Stage 2 – The Growth Stage
“The success combination
in business is: do what you do better… and: do more of what you
do...”-David Joseph Schwartz
Stage 2
You have customers and market demand, you’re excited, and business is taking off
Riding the Rocket
Source: https://flic.kr/p/96iJmd
In life and businessone sizedoesn’t fit all
Stage 2You’re going fast and it’s fun.
This stage is the one so many entrepreneurs
love to stay in.
Source: https://flic.kr/p/7YHYBb
Stage 2
Challenges
It’s hard to hold on
You have too many ideas
You’re not there yet
01
02
03Source: https://flic.kr/p/9x8R1f
Stage 2
StrengthsThere are lots of possibilities
It’s fun You have confidence
01 02 03
Stage 2
You can’t keep going like this, or you’ll burn
out.
Inconvenient Truth
Stage 2
Focus on your specialty or niche.
The Way Ahead
In life and businessone sizedoesn’t fit all
Stage 2
Tips for Moving ForwardAdd supporting or complementary offers
Maintain your beachhead
Stay customer facing and focused
Keep going!
01
02
03
04
In life and businessone sizedoesn’t fit all
Stage 2
Catalytic MomentMarket demand
exceeds your ability to deliver.
Welcome to Stage 3:The Crucible Stage
Stage 3
Stage 3 – The Crucible Stage
“The mark of a successful organization isn’t whether or not it has a problem; it’s whether it has the same problems aslast year.”
-John Foster Dulles
This is everyone’s least favorite stage because it is frustrating.
Seth Godin calls it “the dip.”
Stage 3
The First “No” Stage
There is enough going for you that it’s hard to quit,
but not enough in place to continue indefinitely.
Stage 3
The First “No” Stage
Stage 3
Challenges
You’re tired
You need help
People are watching you now
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02
03
Stage 3
You’re finally at homeas an entrepreneur
Strengths
You’re a small giant You know what’s working
01
02
03
In life and businessone sizedoesn’t fit all
Stage 3
There’s no business
under the business.
Inconvenient Truth
Stage 3
The Way Ahead
people
processes
systems01
02
03
positioning04
You need to get 4 key ingredients into place:
In life and businessone sizedoesn’t fit all
Stage 3
Focus on Your CoreReduce complexity, extraneous effort, and
Start thinking like a manager
Review your margins, brand resonance,
Sell to your current and/or previouscustomers
01
02
03
04
information silos
and sustainability
In life and businessone sizedoesn’t fit all
Stage 3
Catalytic Moment
gelsystems, and positioningYour people, processes,
In life and businessone sizedoesn’t fit all
Stage 3
At this point it is common to seesawback and forth between Stages 2 and 4
Warning
Welcome to Stage 4:The Cruise Stage
Stage 4
Stage 4 – The Cruise Stage
“Keep your eyes on the stars and your feet on the ground.”
-Theodore Roosevelt
Stage 4
All entrepreneurs do 1 of 3 things:
What happens at Stage 4?They
implement a new business
model
They lose a critical
resource
They sell the business and
start overAny of these things will cause you to move back down to a previous
stage.
Stage 4
Object Syndrome
ChallengesPatience: You must
You have a lot to
Bright and Shiny
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02
03
switch to along-term strategy
lose now
Stage 4
In life and businessone sizedoesn’t fit all
Stage 4What is BSO?A Bright and Shiny Object is a new project or potential project that key players in the business latch onto that alters the business’s ability to operate.
Look for the words
Stage 4Strengths
You have leverage
You’re a well-oiledmachine
Money and profitbecome secondary to your mission
01
02
03
In life and businessone sizedoesn’t fit all
Stage 4
You can move fast, but you can’t change directions quickly.
Inconvenient Truth
In life and businessone sizedoesn’t fit all
Stage 4
The Way Ahead
Make your key players obsolete
Scale intelligently01
02
Develop a BSO warning indicator
03
In life and businessone sizedoesn’t fit all
Stage 4
Catalytic Moment
You introduce a new brandor business dynamic
and start the cycle all overagain.
The Way Ahead
In life and businessone sizedoesn’t fit all
The Way AheadWherever You Are, It’s OKWe think if we just make it to
We forget that even though the grass may be greener on the other side, it still needs to be
mowed.
the next stage, all ourproblems will go away.
The Way Ahead
Your task as an entrepreneur trying to grow your business is
to assess the resources you have NOW, and productively
use them to solve the challenges of the day.
If you run out of problems to
solve, you’re either out of business or asleep at the
wheel.
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“A journey of a thousand miles begins beneath your
feet.”-Lao Tzu
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Thank you for being in business!
The Way Ahead
For more information on the Small Business Life Cycle, visit
Please share this with your fellow small business owners!
The Way Ahead
Get even more tips to grow your small
business with the second edition of
The Small Business Life Cycle.
Get the Book
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