The different phases of business ownership and how they affect our profit margins
Today’s episode is about the different phases of business and how this affects our outlooks and goals for the business for the quarter, year and longer. People want to grow their business but they still want to be profitable at the same time. That can’t always be the case depending on what phase we’re at in the business.
So what are the four different phases of the business and how does the profitability figure into that? The four phases are revenue, profit, scale/growth and stability. We all start with the thought process of needing money and that is the main goal in the beginning. When we pass the survival phase we start to understand what profit is. I was the most profitable when it was just myself but that is not sustainable when the business grows. What we ultimately strive to get to is stability.
The one thing to keep in mind is your time. We’re all each running our own race and we can’t keep comparing ourselves to our peers because we have different goals. If you’ve been following my journey throughout the years, you can see when I went through these different phases. If you can take away one thing from this episode, it’s planning!