Nearly every day as I talk with Business owners I will describe the 7 Stages to Freedom and ask them, “Where is your business on the 7 Stages to Freedom?” I have never heard one business owner say that their business is in the freedom stage. Take a look at the chart below:

Dream Phase.

Before entering the 7 Stages to Freedom, would be Business Owners are in the “Dream Phase.” In this phase entrepreneurs are sick and tired of working for someone else and they desperately want to become their own boss. They are exploring an industry or two. They will likely interview business owners in these industries to acquire some knowledge and wisdom. They are researching the market to determine a need for their product or service. They are creating a business model and looking for investment capital.

1. Start Up Stage.

In the Start Up Stage they take the leap of faith and launch the business! They put together a business plan, talk with a bank or investors, get the proper licenses, etc. From there the business owner is focused heavily on marketing; getting the word out that they are in business. Differentiation is the primary focus; how they are better than the competition.

2. Chaos Stage.

If a business owner is successful they descend into the Chaos Stage. This stage is characterized by disorder, red ink, and stress. Business owners are investing cash, time and energy. They are growing in sales. And usually, they are growing the team.

3. Break Even Stage.

From here a successful business owner will climb into the Break Even  Stage. In this stage, the business owner is beginning to measure their results. They are providing incentives to their team and to Strategic Partners to join them. Finally, they are expanding their markets.

4. Burnout Stage.

Business owners in the Burnout Stage are making a little money but are usually working too many hours. They frequently feel “owned” by the business. To get to the next level they need to economize or to maximize their profitability. Improving their business model, making sure that their pricing is adequate are keys here. We find that many business owners have forgotten why they are in business. They need to “dust off” their plan and create a new, exciting vision for their business.

5. Profitability Stage.

In the Profitability Stage business owners are making good money but working too many hours. The business “owns them.” Fixing this can be done by implementing a lean program. They need to systematize, which includes documenting all key processes and making process improvements. Finally, they specialize, which may mean narrowing the scope of services to the ones that are most profitable and most scalable.

6. Success Stage.

In the Success Stage business owners are well known for their accomplishments. They are making good money. But they lack the infrastructure necessary to get to the Freedom Stage. They need to delegate authority to competent leaders. Leadership development is the key. They must prepare their advancing leaders to take over the day-to-day responsibilities.

7. Freedom Stage.

When business owners arrive in the Freedom Stage, they could leave their business for 6 months. When they return the business would be performing better than it was when they left! In the Freedom Stage, a business owner can expand into new locations or start a non-profit. They can acquire another business. Or they can simply harvest the extra profits and enjoy a fulfilling life.

So I’ll ask you the same question that I ask other business owners. “Where is your business on the 7 Stages to Freedom?” If you are ready to go to the next level in your business, give us a call. We’ll explore that possibility with you, no charge. Since we’re talking about growing your business, here’s an article on 10 Ways to Grow Yourself So You Can Grow Your Business. 

Tell us where your business is on the 7 Stages to Freedom in the comments section below.

The post Where is Your Business on the 7 Stages to Freedom? appeared first on Small Business Coach Associates.