The existence phase: acquiring clients and processing orders
If you have recently launched your small business, congratulations! We applaud your courage and business drive, and we wish you success.
Unfortunately, luck will not assist you in overcoming the two most difficult components of launching a new business: attracting new clients and fulfilling their orders.
It doesn't matter if you've just opened a new gym or ice cream parlor, if you're operating under a subscription or non-subscription model, or if you're providing a service or product; finding that first customer and successfully providing them with what they paid for is always the most difficult aspect of the Domestic Electrician Sydney in business.
However, why? Why is this so difficult?
It's impossible to imagine the hardship of acquiring your first paying customers and effectively completing their orders or contracts if you've never experienced the existence stage before.
The stage of being profitable and creating cash flow to survive
When you have a continuous flow of clients and are delivering your agreed-upon items or services without any hassles, you will have advanced beyond the existence stage. You will then begin to examine sales vs expenses with a bit more scrutiny and determine how to maximize your company's profitability. Ultimately, this is the only way to sustainably expand your business.
At this stage, efficient communication also becomes crucial. You must be able to interact not just with your own team (usually your staff, contractors, or freelancers), but also with your clients or customers and potential customers.
The achievement phase: Continue expanding or maintain profitability? The decision is yours.
At this stage in your company's life cycle, you have established operating procedures and customer retention tactics that result in consistently high margins.
In other words, your small firm is operating at a steady pace.
What are your next steps?
Well, that relies entirely on your company objectives.
At the success stage, you have the option of pursuing additional expansion (a high-risk, high-reward strategy) or allowing your business to enjoy stable profitability (a low-risk, lower-reward option). Further expansion necessitates reinvesting everything you have in the business, a move that might propel your small business into the stratosphere… or cause it to fail.
The launch phase: rapid expansion and how to finance it
Let's say that in the success stage, you made the decision to go for it.
You re-invested all of your income and additional company resources back into the business to attempt rapid expansion.
And it succeeded!
Your small firm is currently in the takeoff phase, which is characterized by significant growth over a short period of time. This stage is both exciting and terrifying, as huge expansion necessitates massive amounts of cash to continue covering overhead expenses (e.g., employees, rent, vendors, etc).
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