The Third Step: Nominal Success

April 13, 2006

	Visited: 255
	Not rated
	Rate:

Okay, you're past the "ma and pa" stage (the first two stages in a business's life are infancy and survival). This third success stage, nominal success, will require a fundamental decision. Are you going to hire a skilled manager and let him or her run the business in its static form while you sit on the beach or are you going to start up another kind of business? Or, are you going to try to grow this business by utilizing the borrowing power of the firm to finance an expansion?

If you elect the former, your business will likely remain stable. But if you choose the latter, investing all the company's resources in more and better facilities, equipment, products, and managers, your firm might achieve solid growth or it might falter in its new direction. If you still closely monitor your business, you should be able to recognize that your business is no longer thriving, and you can manage your way back to stability, or at least back to the survival mode.