Home Based Business Start Up and Beyond

Starting a business is exciting and scary, but the real challenge comes after the home based business start up. 

Dr. Greg Chapman has outlined the different stages of business growth very well. 

Start Up

Start-up is the shortest phase. And actually, the shorter it is, the better. During start-up any business burns cash and makes losses. In a home based business that might not be so noticeable, because the biggest input is your own time. But when you remember that any time you spend is lost time earning other money, it becomes more significant.

Youth

The Youth stage is when your business is starting to make a moderate profit, but most of your energy is focused on learning how to conduct your business successfully.

Your customers grow almost by themselves, everyone is excited about your products and services.

Growing Pains

Growing pains happen when you are busy satisfying current clients and cannot really take on more. That is really the deciding point about the future of your business.

Either you carve in and are burried under the pressure. That will lead to maturity and the start of the decline.

Or you re-invigorate the business, change it structures and systems so that you are able to deal with more clients. That usually means freeing your time from delivering the services. That will be the start of the Second Youth.

Maturity

Maturity is a very profitable stage of the business. You know how things work, turnover and profits are pretty stable. This can be an excellent business to own hands-off.

Decline

Without a strong leader and a clear vision, the business will utlimately decline. Times change, needs change and businesses that fall behind get suddenly overtaken by newcomers who are more hungry for success, who are more eager to please their clients.

The Second Youth

The second youth is not comparable to a home based business start up. More capital is necessary, more people are involved, but it is a start up as well. With the same risks and even higher rewards.

For a more in-depth treatment on business growth I recommend Dr. Greg Chapman's website.