The Life Cycles of Business: Strategy and Energetics for Success
Running a business is a satisfying adventure. It’s a journey that, if navigated correctly, can cultivate riches both internally and externally - providing you, your family, and teams an abundant lifestyle full of freedom. It’s a desire many individuals have, but only those who truly lean in get to experience. But what does it mean to lean in? What exactly are we being asked to lean into? At Prism, we’re inviting CEOs to sync with the life cycles of business; each of which come with their own challenges, frequencies, and strategies to be aware of when seeking impactful success.
Before we dive into the three stages of business, it serves us to recognize the key differences between strategy and energy in the realm of business. Strategy is rooted in doing: setting up systems, spreadsheets and tasks that create a successful operation. On the other hand, energy is rooted in being. As an owner or leader, your frequency has to align with who you wish to be before the business itself can reach the level you wish it to go. Becoming aware of who you are and how you’re showing up will only amplify the thoughtful, logistic strategies you have in place.
Phase I: Dream and Conception:
The life cycle of a business has three distinct stages, each presenting new needs, obstacles, and opportunities for growth. The first phase we find ourselves at the initiation of entrepreneurship is Dream and Conception. This is a crucial phase where preparation and alignment play a key role in defying the odds. In fact, the fast answer for what percentage of small businesses fail, according to data from the Bureau of Labor Statistics, is about 20% fail in their first year, and about 50% of small businesses fail in their fifth year. The odds are, based on a report from the Startup Genome Report, 90% of businesses that fail do so by self-destruction or lack of preparation rather than bad luck or market conditions.
Thorough market research and avoiding the "build it and they will come" mentality are essential. As for the energetics, it's important to connect with individuals already successful in your desired field, while also setting boundaries with fear-inducing individuals or bitter business owners. At this stage, it’s valuable to you and your vision to research not only what it takes to bring your product, offering, or brand to life - but also what kind of characteristics, attitudes, and actions to embody and take to keep you motivated and grounded.
Phase II: Proof of Concept and Growth
As we progress into the proof of concept and growth stage, we’re given the opportunity to validate our business model and establish ourselves in the market. This is the time where we experiment, welcome feedback, and fine tune what it is we’re offering in the world. By staying true to our core values but also surrendering to the needs of the consumer, we attract the right customers and clients who are ready and willing to pay for our services. Establishing communication and feedback mechanisms are a key tool in fostering authentic connections, ensuring client satisfaction, and cultivating a supportive team environment.
Once we’ve proved our concept to ourselves and in the marketplace, we can begin to expand our capacity to deliver and receive more in our line of work or field.
Phase III: Maturity & Exit
Finally, if aligned both in strategy and energetics, our business will reach the maturity and potential exit phase. This is the time to reflect on our journey, evaluate whether our business still aligns with our personal values and goals, and put our attention to its life expectancy or possible sell. During this time, it’s valuable to remain honest with ourselves, our people, and even our business, but most of all - honor our individual growth and well-being. Reaching this stage as a leader is bitter-sweet, but if you’re a conscious entrepreneur - you know there is more on the horizon than what’s right in front of you.
Taking time to become aware of, understand, and lean into the life cycles of a business is crucial to creating a satisfying and enjoyable journey for yourself and your people. It’s inevitable that your business will change, expand, and even sometimes contract, but with the right strategies and energetics in place, it’s possible to influence the tides and ride the waves of your business; all while benefiting from its profits..
If your business feels chaotic or not as organized as you'd like it to be - tune into this episode of our "Turn The Volume Up" Podcast to help you identify what stage of growth you're in and what next steps to take. Remember, if you want a million dollar business you have to treat it like one before it becomes one.
