The 7 Crisis Points Every Business Encounters and How to Survive Them – Phase 3

This blog is a product of Kevin Lovewell’s journey from Carl Gould’s book “Seven Stages of Business Success.”

Phase 3 – Synergy

Phase three is a tough one, you will note that the upward trajectory has flattened out – the slope might even be going down-hill such is the pressure on the athlete (owner) – I refer to this as the mad-mile.

The characteristic of this phase is; grow and shrink. The owner confronts growth (in the form of larger production needs, new staff, and subject matter experts) and must change his skill set from that of a technician to that of a manager. Growth represents the evolving better/different relationship between the business and the marketplace. Rather than the owner getting calls, the business does, the owners “baby” is bigger than she can now carry on her own back. And the market place… becomes unforgiving, the phone calls are coming but now they are complaints. The synergies needed by matching limited resources with at times critical demands are much more pronounced.

The owner has a nightmare on his or her hands.

The owner is employing help but needs structures, systems and a team, yet doesn’t know how to get that. For example, in confronting the realisation that “I cannot do it all” the first thing the owner does is employ the “subject matter expert” this is the first time they have employed someone whose technical skills are in another field, one that is not their own.

It might be the bookkeeper, engineer, and driver. The first time this happens, it generally ends up in-tears for the owner and for the employee. That person generally does not have the dedication the owner demands and the owner does not have the skill, patience or protocols in place to employ someone of this calibre.

Unwanted management responsibilities are essential yet unmet, the owner pines for the good old days.

The business plan should be centred on the activities of a manager. Delegation and controls must exist because growth occurs as a consequence of successfully managing, which means surviving the consequences of “you cannot do it all”.

Crisis is being out of control. The owner truly believes things like “you just can’t find good staff” or “I am the busiest person here and the lowest paid.” Survival and break through is via the effectiveness and efficiency of the structural systems and the team that now runs it.

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

If you need more information, please talk to me:

Kevin Lovewell

0401 308 385

Disclaimer: The views expressed in this article are those of the Writer. The information is not meant to be exhaustive. Readers are responsible for making their own inquiries and assessments as to the truth and accuracy of all the information given and should seek advice from professionals. No liability (in contract, tort or otherwise) will be accepted for any loss or damage incurred as a result of reliance upon any material contained in this publication or any information or advice provided in this publication or incorporated in it.

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
What others say about Kevin Lovewell

Graham Long

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

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