One thing I’ve noticed when working with small businesses is that sometimes the big picture can get lost in the day-to-day.

You know what I mean?

But honestly, one of the biggest mistakes I often see small businesses make is not being clear on their vision for success. It’s crucial to determine what your end goal is and why you’re passionate about what you do.

Picture this.

Your small business hitting new levels of success that you never even dreamed were possible. You’re excited to get out of bed each day and tackle the work ahead, knowing that you have a solid plan in place to achieve your goals and make a real difference. No longer are you just hoping for a slightly better day than the last one.

Instead, you have a clear vision of what success looks like for your business and you’re working towards it with everything you’ve got. Trust me, it’s a game changer.

Let’s start this journey together and figure out where your business stands on the six stages of the business life cycle.

Every successful business finds itself somewhere along these stages. It’s important to know where you are and of course, where you want to be. Not every business owner wants to go through all six stages of the business life cycle. And that’s ok.

What is important though is that you make that decision for you and your business.

So, what are the six stages?

First up is the Startup stage. This is where you’re fuelled by excitement and energy, waiting for that first customer to try out your amazing product or service. Your passion and determination are what drive you to find the perfect product-market fit and to make that first sale. It’s an exciting time full of potential and possibilities.

Moving on to the next phase: the wilderness. This is the stage where things might feel a bit overwhelming, even though you’ve already got some customers and revenue coming in.

Your main focus now is on giving your customers the best possible service, all while navigating uncharted waters. At this point, you probably don’t have a big team yet, but that’s okay – you’ve got plenty of resourcefulness and adaptability to handle whatever comes your way.

When it comes to measuring success during this stage, revenue per full-time equivalent (FTE) is a pretty important metric. Typically, businesses in the wilderness stage bring in less than $150,000 per FTE employee each year. Don’t worry, though – you’re definitely not alone being in this stage, as round 70% of businesses in Australia are in this same boat.

Next up is the third stage: the lifestyle stage. This is a wonderful phase where you can enjoy comfort and financial stability.

At this stage, you have the freedom to work the hours you want, even enjoying a four-day work week. You can prioritise family commitments, dropping off your kids at school and indulging in various lifestyle activities.

Additionally, you have the flexibility to take at least four weeks of holidays each year. Stage 3 is really the sweet spot of a cash flow business, offering a supportive and balanced approach.

Moving on to the fourth stage, known as the “desert,” This is where you can really kick your business’s growth into high gear. By investing in your business, you can power its growth.

While overhead costs may increase initially, along with investments in equipment, machinery, and marketing, the revenue may not see an immediate change. However, this is the stage where your business can truly thrive, making strategic moves to maximise its potential.

Imagine the possibilities for your business as you transition from the desert stage to the performance stage in the business life cycle. Stage five of the business life cycle.

At this stage, your hard work has paid off, and you possess a valuable business asset that could be sold for a substantial value. Picture your business as a well-oiled machine, like a formula one car, with all components functioning seamlessly.

With the support of your financiers, you can seize growth opportunities and fuel further expansion. Every member of your team understands their role and the vision of success for both themselves and the business.

And as you invest more in your business, your profitability steadily rises.

Now, let’s dream even bigger. Enter the final stage, stage six, the unicorn stage, the pinnacle of the business life cycle that only a select few global enterprises achieve.

These are the publicly listed companies with a revenue per full-time equivalent greater than $500,000 per employee.

As you contemplate the six stages of the business life cycle, consider where you want to be.

Most small business owners strive for either the lifestyle or the performance stage. Would you prefer a stable cash flow business that you can dedicate yourself to over the next five to ten years?

Imagine the possibilities that lie ahead for your business.

Take a moment to reflect on where you envision yourself in the six stages of the business life cycle. Whether you desire a lifestyle business that grants you the freedom to enjoy a balanced work-life schedule or a performance-driven venture with high value potential, we are here to support you every step of the way.

Would you prefer a cash flow business that allows you to work four days a week, spend quality time with your family, or even take extended holidays?

Or perhaps your dreams is to build a performance-driven business that holds substantial value and can be sold in the future, giving you a significant profit. Keep in mind that the performance driven business requires a substantial time investment to develop.

It’s time to define what success means to you over the next three to five years and determine which stage of the business life cycle aligns with your dreams.

Let us help you navigate this journey and guide you towards reaching your goals.

So, take a moment to think about your business and what you need to do to bring it to the next level.

Let us work together to make your vision a reality, empowering your business to thrive and succeed beyond your wildest dreams.

Unlock the secrets to business success and download a copy of my FREE guide to the 6 Stages of the Business Lifecycle HERE. Explore the journey from inception to growth, and discover the strategies to thrive at every stage.