Business Lifecycle: Decline, Rebirth & Death of a Business
- S11E4
- 14:13
- October 25th 2022
This collection of phases may as well be titled “The Good, The Bad, and The Ugly”, with Rebirth being “The Good”, Death being “The Bad,” and Decline being “The Ugly.” After a period of stability and success, a company may encounter a decline in revenue and profits. The decline can be exacerbated by an owner’s unwillingness to invest in people or technology, otherwise raiding the piggy bank and withdrawing their equity.
The Decline Stage of your business is marked by Decreasing sales, plunging profits Survival mode, cutting losses, exiting the business Searching for new opportunities & business ventures
You can avert this stage with innovation. This phase’s challenges include: Rejuvenating product line Re-evaluating customer needs & value provided Protecting cash flow Exit strategy
From the Decline Stage, your business will either move into Death or Rebirth.
The Death Stage is marked by insolvency, bankruptcy, and the business having no value. Yikes! The challenge is to reposition/rethink markets, customer needs and product offerings, and/or to start over.
The Rebirth Stage is marked by a successful turnaround effort, financial restructuring, new leadership, strategic focus, and process improvements. Challenges with rebirth include: Re-gaining traction in market Re-building sales Re-invigorating employees Rebuilding financial strength & equity value Re-formulating exit strategy Listen to TurboCharge Your Business on the International Business Growth Network or wherever you get podcasts and gain access to even more great resources at https://turboexecs.com/turbocharge.
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TurboCharge Your Business
TurboCharge Your Business is a show for business owners who are tired of just working IN the nuts and bolts of their businesses and ready to work ON the business itself from a big-picture, growth-oriented, strategic perspective.
This season is called 13 Weeks to Financial Literacy and over the course of the season, your host Patty Lawrence is teaching you everything you need to know to take your business from confused and chaotic to strategically growing with you in the driver’s seat. From people planning to cash flow planning to performance measures and more, it all starts with understanding the story behind your numbers.
Meet Your Host
Patty works with $2M+ professional services and non-profit organizations that struggle to get the timely financial reports they need to function, often because one person holds this information hostage or lacks the skills required to do the work.
Through outsourced accounting and CFO services, Patty and the TurboExecs team reveal the story behind the numbers so leaders confidently can make data-driven decisions that allow them to leap forward, trusting they have the team and finances in place for manageable, profitable growth. As a result, their clients typically increase the bottom line by at least 15% and feel in control of their finances and results.
Patty got her first taste of entrepreneurial life in the office of her father’s well drilling business in her teens. With her first accounting class in high school, she’d found the professional outlet for her problem-solving skills.