Business ownership: The dynamics of a mature business
The dynamics of a mature business
The relative stability of the maturity phase may be a welcome development. But it can be accompanied by declining sales and thinner profit margins. The urgent tasks for your business are to differentiate itself and innovate with an eye toward restarting the growth engine.
Questions and answers:
Q: How will I sustain my business and avoid a downward spiral?
Most successful mature companies determine what they are truly good at and strive to better differentiate themselves in the market while not losing sight of costs and risk. Your path will often depend upon your product and the strengths of the enterprise.
Q: How can technology help?
Technology solutions (e.g., BI and data analytics, automation, AI, CRM) help with cost savings and margin focus. They can also help your company’s transformation journey. Better customer understanding allows you to focus your efforts and capitalize on what customers value.
Q: Do I have a detailed exit strategy?
You’ve grown something substantial and continue to lead the organization. Your focus will be different than with a purely growth-focused company, and your succession plan with specific grooming and transition protocols will be very important at this company stage.
Best practices for owners of growth stage businesses
People, process, and technology
Heed the tax implications of strategy shifts
Strategic shifts in the business often lead to changes in tax structure and planning. Talk with your tax advisor about new opportunities that may exist based upon the strategic choices you are making.
How do entrepreneurs address the various lifecycle stages of business ownership?
Owning a business takes a certain confidence and grit. All owners are different, but all face similar challenges. Our business ownership lifecycle ebook shares insights gleaned from helping business owners face these challenges head on.
This article was written by RSM US LLP and originally appeared on 2023-02-08.
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