Where are You on the Business Cycle Curve?

There are predictable cycles in your business and life. Think of it as an “S” lying on its side.  This is known as the Sigmoid Curve. Where is your business in relation to the “S” Cycle? 

1. Phase One – the Learning Phase which is a time where you are starting something new.  There is a high level of activity.  This phase is where most businesses start and then die.  They lack either the will or the means to survive, or both. 

2.  Phase Two – the Growth Phase which is what happens if you survive Phase One.  You now have many opportunities ahead of you, with many possibilities.  You will feel energy and excitement.  However, be careful.  Keep close tabs on your money and build reserves in many areas of your business and life.  Not being prepared for a change in the conditions around you will put you in the next phase, the Decline Phase.  You must learn to adjust quickly to conditions around you, because it is inevitable that they will change at some point.

3.  Phase Three – the Decline Phase which is where businesses experience a drop in customers, sales and energy.  You must adapt and reinvent your business in this phase, or fail. 

If you are a successful business owner, you will experience all of these phases.  After Phase Three you will go back to Phase One in your business.  Knowing where you are on the curve will help you prepare for the next phase.  It is a challenge to build a successful business, but in my experience, it has definitely been worth the challenge.