As businesses grow, they tend to move from one phase to another.  Sometimes, this movement is the result of a brilliant business idea that takes off.  Most of the time, any movement from one business phase to another is the primary result of what the business owner does or does not do.

First, let me explain the phases I am referring to.  Initially, there’s the ‘hobby phase’.  Depending on how you started your business or how successfully you’ve been able to grow your business, you may have something that only operates part-time.  At this phase, you are likely only earning part-time income.  Businesses in the hobby phase, tend to be so because the owner decided they could only devote so much time and money to their endeavor.  If this is all you expect and your results are meeting your expectations, great!  If you’re putting in full-time effort and resources and getting only part-time results, you seriously need to upgrade your strategy.

The next phase is called ‘The Solopreneur Phase’.  This phase describes business owners who operate by themselves.  They handle everything and are limited by the amount of time they devote to running the business and delivering the product or service they sell.  Their capacity for revenue is capped at their capacity to produce it.  In some businesses, this may be enough.  In others, it means low-income return for long hours!

The third phase is the ‘business owner phase’.  This phase is where the majority of business owners would love to be.  having a business that generates the revenue you want and a staff that does most of the work.  When your business capacity goes beyond your own revenue producing efforts and you have a structure in place to keep it going, you are in business owner phase!

Advancing from one phase to the next or trimming the business to a lower phase requires planning and an understanding of your cost of doing business.  There are many things to consider which would take too much to write in this blog.  If you want ideas about how to transition from one phase to another, listen to my radio broadcast on ‘What Phase is Your Business In?’.

If you want more individualized help on your particular situation, sign up for my complimentary business diagnostic session and learn how to do this yourself.

Originally posted 2015-10-27 12:14:01. Republished by Blog Post Promoter