Ten Signs Your Business Is At The Top Of Its Business Life Cycle Curve

By | September 11, 2017

Self-aware organisations recognise that anticipating the peak of their curve is a critical business issue, one which they need to have strategies in place to deal with before the apex is reached.

Here’s some clues for you:

  1. The amount of cash the business is throwing off reaches unfeasibly high levels.
  2. There are no obvious things to invest the cash in. The options are debatable; it comes down to judgement and belief.
  3. Visionaries sell out of the market all together and move into a different space.
  4. The margins you are making allow new entry competitors to enter the market with a different value proposition and take business from you by not setting such a high margin target. They accuse you of being ‘greedy and exploitative’.
  5. Increasingly the market-place is made up of ‘me too’ competitors, and consolidation starts to occur.
  6. The directors start selling shares or/and the owner(s) starts attending mysterious ‘off-site’ meetings.
  7. The conditions of entry into your market-place change. New regulations, technologies, demographics etc. kick-in.
  8. Customers start asking you for things you considered they would never want a year previously (so you did nothing about)
  9. The regulators step in and say, this can’t go on.
  10. You see your boss on TV being door-stepped by journalists on his/her way to meet with lawyers, before ‘voluntarily’ going on to a police station.

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