In this episode of the Napkin Numbers podcast, join Scott Lundt and Rahsaan Freeman as they guide you through the crucial last stages of the business lifecycle. From navigating the shake-out phase to thriving in business maturity, they offer actionable strategies for recognizing decline, optimizing funding, and planning your exit – because knowing when and how to step away can be just as critical as knowing how to grow.
From Boom to Bust: Understanding the Shake-out, Maturity and Decline Phases
Tune in for expert insights to keep your business on the path to long-term success.
Napkin Numbers Talking Points
[0:00] Introduction to Business Life Cycles and Corporate Funding Series Part Three.
- Rahsaan Freeman introduces the third part of the series, focusing on the shake-out, maturity, and decline phases of the business and corporate funding lifecycle.
[0:22] Understanding the Shake-out Phase
- Rahsaan discusses the shake-out phase, which occurs after the growth phase.
- This phase leads to slower sales increase and decreasing profits due to market saturation and increased competition.
[2:42] Navigating the Maturity Phase
- Scott discusses the Maturity phase, which marks stable sales, thinner profit margins, increased competition, and the need for innovation and brand image reinforcement.
- It often accompanies a low business risk and increased debt funding availability.
[5:23] Recognizing the Decline Phase
- The decline phase is characterized by decreasing sales, profits, and cash flow, resulting from failure to keep up with competition and market changes.
- It’s crucial for business owners to have a plan for either reinvestment or exit.
[7:10] Planning for Transition and Retirement
- Business owners entering the decline phase should start setting goals for an exit timeline, assembling a transition team, and keeping up on financial and operational records.
- It’s essential to ensure you have a plan B in case plan A doesn’t work.
The later stages of the business lifecycle—shake-out, maturity, and decline—are crucial in shaping the future and legacy of your business. Applying strategies to navigate these key phases, such as maintaining brand strength, adapting to competition, and preparing for the future, will position your business for lasting success.
Freeman Lundt is here to help you plan your business’s growth and exit from your business on your terms. The #1 question of CEOs looking to grow or sell their business is always, what is my business worth? Don’t worry, we have a free, confidential, industry-leading tool for that! Please use our complimentary business evaluation calculator to determine your business’s worth.
