Stage of life cycle

Organizations go through many stages of a life cycle. At what stage is your organization?

New small business: You are still honing the business plan and looking for clients. You're not making money yet.

New large business: You are looking for investors, perhaps just to make payroll. Share values still very weak, and cash flow is a continual concern.

Growing small business: The business plan is clear and you have enough good clients to pay the bills. You are making fewer mistakes and breaking even.

Mature small business: Finances are strong, and you can afford to hire people to cover all workloads. The business has a clear constituency of customers. The business doesn't depend on the owner(s) to be there all the time; they could sell it if they wanted.

Mature large business: Finances are strong and you exploit economies of scale; you can afford to hire people to cover all workloads. You have a clear constituency of customers. The business doesn't depend on the owner(s) to be there all the time; they could sell it if they wanted. Share prices are at least as good as industry average, and pay a dividend. Shareholders are long-term investors, not start-up supporters.

Moribund: Finances are strong, but mainly in capital assets rather than cash flow. (Senior management might want to sell assets to maintain viability.) Goods and services appeal to an ageing demographic. Staff resist change and shifts in market preferences. The organization spends lots of time and resources in managing itself, and senior people put lots of energy into playing politics. Share prices might be stable, but have little prospects of strong increases. The organization might be a good takeover target.