Aging Businesses

April 13, 2006

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Many businesses never reach this stage of the business life cycle because they either fail at an earlier stage or they remain healthy, growing entities. An aging business is characterized by a conservative philosophy aimed at maintaining the business's internal bureaucracy and its market status quo.

Some companies reach the point where innovation and creativity are limited to tinkering with current products and existing markets. Investment into new product lines and emerging markets represents a financial risk that a complacent ownership is unwilling to assume. Aging businesses tend to be cash-rich because less investment is being undertaken.

The financial concerns for owners of aging businesses often involve selling the business and retirement planning .