As I describe in my book, The Quiet Millionaire. there are four transitional stages that a family business owner experiences from starting and growing, to exiting a business – Wunder, Blunder, Thunder, Plunder. The Wunder stage is the initial survival stage.Most new businesses don’t survive the Wunder stage, and my book explains why.
Fortunately, I was was able to make it beyond merely surviving, and keep moving forward to the Blunder stage. To read about my story as an entrepreneur during the “Wunder” years, CLICK HERE.
Beyond the Wunder stage comes the Blunder stage, which is the early growth period for a business. This is when growing pains occur and many mistakes are being made. I had to learn from my mistakes, and make changes accordingly so that my business could evolve for achieving the growth necessary to remain viable.
At this point, I also realized that owning a successful business required more than just me. I had to make some very important decisions regarding my company’s future, most significantly with regard to building a team of professionals who I eventually could entrust with the integrity and health of the business.
Typically, businesses don’t evolve beyond the Blunder stage mainly because of two mistakes. The owner makes wrong hiring decisions, and the owner does not trust others enough to effectively delegate. I struggled with the consequences of both until it finally registered with me that the future growth of the business was being stymied by making both mistakes.
I also learned how much managing expenses during this stage was a precarious balancing act. Not only is hiring the right people difficult and effectively delegating to them critical, but making money with them takes a prolonged amount of time. In my case, additional expenses increased ahead of increased revenues until the right people were in place and fully contributing without me having to be involved in every client meeting and every decision being made.
The Blunder stage is also when the business owner should begin to think about how they intend to exit the business for maximum value during the Plunder stage. This is because it’s all related to the hiring and delegating decisions started being made during the Blunder stage. Here again, I made the same mistake that most business owners make, not starting planning early enough, and it cost me emotionally and financially during the Plunder stage.
Please CLICK HERE to contact me directly for answers to questions you might have about your specific situation or to set up a confidential, no cost, no obligation telephone assessment of your particular business status. Learn from my experiences and expertise before you make possibly costly mistakes.