All businesses have a life cycle to them and should be managed based on the phase of that life cycle they are in currently in order to optimize growth and graduate from one phase to the next. Much like a human develops, so too does a new business as new skills sets, goals and milestones are accomplished.
The concept develops while in the womb and becomes a tangible idea with business plans financials and branding ideas for how this new business will go to market. Good planning and a commitment of time and resources is what will make the business have the best opportunity to start its growth and development with as few missteps as possible. A new business needs great marketing and business development to get their customer base in place and to establish the value proposition.
As the new business begins to grow, it enters the toddler stage where now it’s learning to walk and talk, basic skills, but extremely important during this phase. The business is beginning to define its unique selling proposition, the first true non- revenue producing employees are brought into the business and a system is beginning to take shape for getting and delivering the work. Great financial management tools and technology implementation are critical during this phase of the business’ lifecycle.
As the business matures and enters its teenage years, there is more of a sense of confidence, stability and independence. Stronger statements are made through consistent marketing campaigns, better branding and consistent revenues. The business begins to take market share and get some recognition from the rest of the industry.
When your business enters the maturation and adult phases of growth, now is when a company would consider franchise expansion as a way to build and replicate. There should be revenue growth, operating systems, good sales processes and a keen understanding for potential market growth. The business model has established itself and you have achieved confidence and understanding for how the model works. New company growth, franchise development, licensing deals or other options could be considered at this point.
For more information on how to franchise your business, contact us.