Enterpise life cycle,Motivation.docx

Challenge if your business is in the startup

This preview shows page 3 - 6 out of 15 pages.

Challenge: If your business is in the startup lifecycle stage, it is likely you have overestimated money needs and the time to market. The main challenge is not to burn 3
Image of page 3

Subscribe to view the full document.

through what little cash you have. You need to learn what profitable needs your clients have and do a reality check to see if your business is on the right track. Focus: Startups requires establishing a customer base and market presence along with tracking and conserving cash flow. Money Sources: Owner, friends, family, suppliers, customers, or grants. 2. Growth Stage If you are at this stage, your business should now be generating a consistent source of income and regularly taking on new customers. Cash flow should start to improve as recurring revenues help to cover ongoing expenses, and you should be looking forward to seeing your profits improve slowly and steadily. Revenues and customers are increasing with many new opportunities and issues. Profits are strong, but competition is surfacing. Challenge: The biggest challenge for entrepreneurs in this stage is dividing time between a whole new range of demands requiring your attention– managing increasing levels of revenue, attending to customers, dealing with the competition, accommodating an expanding workforce, etc. Focus: Businesses in the growth lifecycle are focused on running the business in a more formal fashion to deal with the increased sales and customers. Better accounting and management systems will have to be set up. New employees will have to be hired to deal with the influx of business. Money Sources: Banks, profits, partnerships, grants and leasing options. 4. Established Stage Hiring smart people with complementary skillsets is necessary to make the most of your company’s potential during this phase, and so any good founder will be spending a lot of time directly involved in the recruitment process. It is essential that you start to come into your role as head of the company in this stage. While you’ll still be on the front lines often enough, you need 4
Image of page 4
to be aware of how your expanding and highly qualified team is going to be taking over a great deal of the responsibilities that were previously tightly under your control. It is your job now to start establishing real order and cohesion as you mobilize the teams according to clearly defined and communicated goals. The enterprise has now matured into a thriving company with a place in the market and loyal customers . Sales growth is not explosive but manageable. Business life has become more routine. Challenge: It is far too easy to rest on your laurels during this life stage; the marketplace is relentless and competitive. Stay focused on the bigger picture. Issues like the economy, competitors or changing customer tastes can quickly end all you have worked for.
Image of page 5

Subscribe to view the full document.

Image of page 6

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern