Business Cycle

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Business Cycle

Business Cycle

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The decision to start a business is one of the most pivotal decisions you’ll ever make.

As you grow your business, understanding the life cycle all companies undergo will help you confidently prepare for what’s ahead. Just like people, businesses develop through distinct life stages. These business cycle stages begin with your career, progress through your business’ launch and growth, and end with your exit from business. Take charge of your company’s future by strategizing for smart growth oriented to your current business cycle stage. With the right skill set and mindset, you’ll create upward momentum for a cycle of success.

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Phases of business cycle growth: Challenges and solutions

Each phase of a business’ life cycle presents opportunities and challenges. In which of the following stages is your business?

1. Career Growth

Although your business is still just an idea, career growth is actually one of the first business cycle stages. Even if you never start your business, building your career is an excellent opportunity to develop your crisis leadership skills, gain self-awareness of your working style and master management strategies like negotiating and leveraging your assets. Take the opportunity to work on yourself, and tune into your passions. The process of getting to know yourself while developing your skill set will help you create a meaningful, fulfilling career while preparing for potential entrepreneurship.

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2. Should you start your own business?

The prospect of turning a passion or extracurricular into a business is an intimidating one. You have many pieces to sort out, like whether or not you should quit your day job and if you have what it takes to be a business owner. Utilize all your resources to connect with your business vision while expanding your business acumen. Make use of Tony Robbins’ business seminars and other business training resources to master the essentials, including how to confidently sell your product, prioritize innovation and lead effectively. Take the time to do your market research to fully understand the industry you want to enter. Don’t forget that it’s never too early to practice empowering self-talk as you prepare for the potential launch of your business.

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3. Starting a successful business

Starting your own company is one of the most thrilling phases of the business cycle. You’ve taken the leap and are pursuing your dream. When your business is in its startup stage, you’ve successfully obtained the capital necessary to launch the business, and you’re putting in all your time and energy to lay the foundation of your brand identity and company culture. This is the business cycle stage in which you must invest the time to thoroughly refine your business vision and the product or service you’re selling. Research the industry and solicit product feedback from friends and colleagues, tweaking your product to continually improve it. Do your market research so you fully understand the market you’re targeting. And don’t forget to solidify your internal operations, finances and company culture, as these are what will ultimately usher you into the next phases of business cycle growth.

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4. How to grow your business

Once you’ve survived the startup years, you emerge into some of the most exciting phases of business cycle development. Your company is now established enough to begin aggressively pursuing growth. This period is also a time of growing pains where many firms experience problems from growing a business too fast. Rather than pursue uncontained growth, use your business’ growth period to shape (and sharpen) your team, company culture, customer retention strategies and sales procedures. By building your capacity now, you’ll be able to function at maximum capacity in upcoming years.

As you pursue sustainable growth, you’ll reach a point where your company hits its stride. You’ve put in the foundational work, and now your business runs like a well-oiled machine. Your team works cohesively and you’re able to delegate tasks. Sales are consistent, and you may even be expanding to new markets. You’ll want to prioritize expanding your revenue sources and market share. To accomplish this, you’ll need to investigate new products or services that will appeal to your target market.

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5. Exit strategy

Once your business hits its stride, you get to enjoy the fruits of your labor while making plans for what’s next. If you’ve grown your business strategically, you can plan your future from the bedrock of financial independence. When your business has reached the goals you set for it, you have a choice between continuing to do business or exiting the industry. In order to be prepared for the latter, you must create an exit strategy. Although it may seem presumptuous to think about selling or closing your business, having a clear exit strategy in place from the get-go will help you strategize for a smooth, graceful landing.

Creating an exit strategy from the start can save you from launching and running a business whose product or timeline does not allow you to accomplish all you envisioned when you set out as an entrepreneur. If your dream is to travel in retirement but you don’t plan accordingly while your business is open, you’ll likely encounter roadblocks to making your dream a reality. Making an exit plan allows you to tailor your business activities toward your end goal of retirement and travel. Depending on what you want to accomplish in exiting your business, you’ll need to choose between selling to a friendly buyer, acquisition, liquidation or maximizing your income (salary, bonuses and dividends) while your business is thriving.

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The importance of pacing yourself

When it comes to navigating the phases of business cycle growth, think of it as starting from scratch to train for a marathon. As a brand new runner, you’d never consider signing up for the marathon without any training. If you practiced too hard too soon, you’d injure yourself, potentially eliminating yourself from qualifying for the marathon. Instead, you’d train at a pace your body can tolerate, gradually building strength and stamina as your body adapts to the increase in exercise. With diligent, well-paced practice, you’d get in shape to run the marathon of your life. Your business’ growth is the same. As you pace yourself while challenging yourself to achieve progress, you’ll become able to advance your business sustainably.

Learn to use business cycle stages to your advantage

Although the prospect of navigating business cycle stages can be daunting, the reality is that running a successful business is within your reach. All you need is sufficient business know-how coupled with the unshakeable confidence that comes with empowering yourself. In the end, it’s ultimately your mindset that will make the difference between being a business operator versus a business owner. Take the reigns today and commit to overcoming the fears and limiting beliefs holding you back from business mastery. Think of what you’d accomplish if you weren’t afraid. Master your business cycle stages by engaging with Tony Robbins’ 7 Forces of Business Mastery, a content series where you’ll learn to set your company apart from the competition and create loyal customers for life.

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