The 7 Crisis Points Every Business Encounters and How to Survive Them – Phase 4

Phase 4 – Systems

Phase four represents systems. The owner now has a business and the team seems on the face of it to be all running in the same direction. The owner now needs to plan for intelligent, incremental improvements.
The business plan concentrates on coordination. Whilst the owner may occupy the functional role of general manager, that realisation occurs that the role should be held by another more suited to breaking through the next barrier. Further growth needs the subject matter expert (the CEO type) due to the needs of effective coordination. Friction occurs because of management / owner conflicts; “red-tape” both internal and external can kill the business here. Survival and break through depends upon the owner not strangling their own business, destroying “the baby” rather than give it over to the CEO or similar internally employed subject matter experts.

Obviously I have adapted Carl Gould’s underlying directions with knowledge gained in my travels. I still encourage people to read Carl’s book and there are a few others like Alexander Osterwalder’s 2009 book called “Business Model Generation.” Looking forward to your comments and going a bit further in my next blog. ~ Kevin

References:

Some interesting texts the author recommends are:

Gerber, M. (1998) The E-Myth manager: Whey Management Doesn’t work and what to do about it, Harper Business, New York

Gould, C. (2010) the seven stages of small business success, Keynote Publishing, Charleston

Greiner, Larry E., Evolution and revolution as organisations grow (1972) HBR

Reynolds, S. (2010) Why People Fail: The sixteen obstacles to success and how you can overcome them, Penguin Group, Sydney

Tan, J., Fischer, E., Mitchell, R., & Phan, P. (2009) “At the centre of the Action: Innovation and technology strategy and research in the small business setting” Journal of Small Business Management 47(3):233-262

Kevin Lovewell

M: 0401-308-385
E: Click here to contact Kevin Lovewell
Member & Registered Business Valuer
Australian Institute of Business Brokers

Graham Long

M: 0428-649-791
E: Click here to contact Graham Long
Member & Registered Business Valuer
Australian Institute of Business Brokers

Kevin Lovewell

M: 0401-308-385
E: Click here to contact Kevin Lovewell
Member & Registered Business Valuer
Australian Institute of Business Brokers

Graham Long

M: 0428-649-791
E: Click here to contact Graham Long
Member & Registered Business Valuer
Australian Institute of Business Brokers

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