Even the greatest of businesses have to go through these steps to successfully climb the ladder of success in business. from being a startup. One can notice similarities about the steps of journey each businesses have gone through. The best names in business are recognizable, household names. This kind of success in business isn’t grown overnight, and it requires strategic growth.
Demand for Existence
In this step the main problems of the business are obtaining customers and delivering the product or service contracted for. The businesses strategy is simply to remain alive. Companies in the demand for existence Step are yet to stabilize either production or product quality.
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They run the risk of never gaining sufficient customer acceptance or product capability to become viable. In a worst case scenario eventually the startup capital will run out. Then the business is closed down or sold for its assets or for any value left. Those companies that remain in business climb to the next step.
Earning a Survival
Climbing this step, the business has demonstrated that it is a workable business entity. It has enough customers and satisfies them sufficiently with its products or services to keep them. The key problem thus shifts from mere existence to the relationship between revenues and expenses.
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In the short run, businesses can generate enough cash to break even and to cover the repair or replacement of our capital assets as they wear out. At a minimum, they generate enough cash flow to stay in business and to finance growth to a size that is sufficiently large.
Climbing the Ladder of Success
The decision facing entrepreneurs and business at this step is whether to exploit the businesses accomplishments and expand; or keep it stable and profitable while maintaining the business more or less in the status quo.
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At this step the business has attained true economic health. It has sufficient size and product-market penetration to ensure economic success, and earns average or above-average profits. The business can stay at this step indefinitely, provided environmental disruptions does not destroy its market niche or ineffective management reduce its competitive abilities.
Further, if the business can continue to adapt to disruption. It can continue as is, be sold or merged at a profit; or subsequently successfully climb the ladder of success to be a timeless household name in business.
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