Knowing your business life cycle (1)

It is important for every small business to know exactly why they are in business and at what stage their business is in at every point in time. Taking cognizance of this big question is very necessary to remaining in business. From time to time businesses need to review and evaluate what stage their businesses are at every stage in their business life cycle, this will enable them know how to plan. This gives them a foresight and a clear direction as to how to move to the next level.

Key questions that small businesses need to ask at every point in time-

1.  What are the business names and those it tally with what we do?

2.  Why are we in business – to make money or help people?

3. What do our customers think we stand for?

4. What stage of the business life cycle are we at?

5. How long do we intend to stay at every stage before we move to the next stage in our business life?

6. Are we progressing at a good pace or staying at one stage forever?

7. How do we sustain the maturity stage of the business to remain on top?

8. What do we do consistently to remain and not be wiped out of business?

9. Do we intend to diversify or remain in the same line of business?

10. Do we understand the business so well to know our suppliers and buyers?

To be continued

Linda Ochugbua

•Linda is BusinessDay’s SME Accounts Manager