Basically, every organization, from a one person start-up to multibillion dollar conglomerates, is at some phase of a business growth or development cycle. Many companies remain at one phase longer than others. Some do not survive while others jump from one development cycle to another. We are all experiencing the VAT issues and many businesses such as the tourism sector are left to figure out how to recover cost that they have incurred in the prior year as are many businesses with their current inventory. These issues and others can affect a business.
I have experienced first hand the different phases of business development during my career. All businesses generally go through the same three basic development or growth phases. Entrepreneurial, Growth, and Decline or Renewal.
I enjoy the first phase the most, which is the entrepreneurial phase. This represents the time of infancy and invention. I remember doing what it takes to survive, willingness to take risk, high motivation and energy.
The second phase, growth, is if you survive the first phase. We have lots of start up businesses in Guyana that never make it to this phase for many reasons. This phase requires market and financial success, focusing on efficiency and effectiveness such as Gafoor’s investment in inventory and consumer technology. A successful company has to develop systems, rules and procedures. They must shift from an entrepreneurial direction to more management control but continue the excitement of growth. Many times though those same systems and procedures we put in place become barriers to our success. Duplication such as seen in our retail stores and rigid policies can become obstacles.
Every growth cycle has a peak. One of my former companies was at the point of decline and almost collapsed. It was one person that I hired that recognised our declining trend and injected a renewal phase.
If we had waited until it was too late to renew, the decline would have meant death for our business. Many businesses today given the pressures of the economy, VAT issues and global competition must anticipate the need to change and work on the renewal phase.
Key questions that must be asked.
* What is your organization doing right now to prepare for where the market will be one year from now? Three years from now?
* What could you be doing differently to better anticipate corporate or marketplace changes?
* How would your business be better positioned today if it could have better anticipated the needed changes it now faces?
* What benefits have you received when you have successfully anticipated corporate or marketplace changes?
The renewal phase is marked by a revitalisation, new willingness to take risks, and rekindling of the entrepreneurial spirit. I would recommend a continual renewal phase. Look at VAT as a necessity for the economy, it is something that all businesses must make work, look at ways to cut your cost and become more efficient. Invest in technology to make your business more competitive and continuously analyze where you are on the chart, but don’t wait until it’s too late. Until next week: “Roop”
