Business Definition: The Activity of Making A Living By Producing or Selling Products and Services
Rick, are you saying that a person can own a business but not meet the business definition?
I admit the definition in the blog article is the extreme. But, the truth is the truth.
Of course, a small business owner can define what a business is.
What are the various definitions of owning a business?
There are four stages of business growth.
Startup-a high infusion of capital with little or no products or services sold.
Renewal or decline
321 Biz Dev will focus on #2 and #4.
Stage 2: Business Growth
Your business plan is paying off. Consumers know about your product or service. Your revenue is increasing. Your business has less turnover. And your market share and customer base are growing. After being in business for a few years, your company is going through rapid growth.
While it’s an exciting time for your business, managing for growth is important. Staying focused on your business goals in this stage can be challenging.
It’s a good idea to:
Set goals that let you grow with purpose, so you’re using your resources in the most effective way.
Maintain capital, because without it, you won’t be able to meet financial obligations.
Create realistic, accurate forecasts to help drive your goals and stay on track.
Stage 4: Business Renewal or Decline
While every business wants to avoid a decline, it’s bound to happen to almost everyone. This can happen for a variety of reasons, such as:
Not pursuing opportunities to expand during the maturity stage
Changes to the industry affecting customer demand
Competing businesses having better products or services
Not reacting to technology updates or advances
It may be hard to tell if your business is in a decline. You may feel like your customers are increasing, and you’re meeting their growing demand. But, if your business has seen several years of dropped revenue, you’re in a decline. That’s why it’s important to regularly look at your finances.
When your business is in this stage of the life cycle, you have two choices: sell or reinvest. If you decide to sell, you’ll want to work with the right people to make sure you’re following state and federal finance laws.
Reinvesting in your company can result in its renewal. Ideally, you want to start this process before your business is in a decline. For example, if you notice there’s a change in the industry, modify your strategy. If your business is already in a decline and you decide to reinvest, you’ll want to quickly find out how you can address the new needs of your target market.
Whether your business is in the growth or renewal/decline phase, 321 Biz Dev understands how to inject sales performance and sales productivity components into small business operations.
We can reached at (855) 585-2500.
Rick Nappier, President