Business Life Cycle
We’ve been reviewing the business life cycle and correlating its phases to the signs of the zodiac. We’ve examined the start-up phase and its correlation to the qualities of Aries, Taurus, and Gemini, and the growth phase, with its correlation to the signs Cancer, Leo, and Virgo. Now the business is ready for the expansion phase.
Libra
Libra marks the beginning of a phase when the business will either continue to expand through entering new markets, enlarging the company through mergers and acquisitions, or taking the company public, or it will maintain the status quo, rest on its laurels, and coast toward its ultimate termination. A business that does not move forward with the times and respond to social forces with innovation will eventually reach its termination.
At the Libra point the business begins to establish partnerships to aid in its expansion and deals with responsibilities to investors. There will be a focus on networking to expand the customer/client base as well as a further shift in management to a more broad-based model. As the employee base expands as well, effort goes into recruiting the right people and dealing with human resources complexities.
Leadership in this phase will bring in outside consultants and new board members to engage the skills necessary for expansion. Legal issues may become more serious now, with outside threats to product brands and legal challenges as the company becomes more known in the market.
This phase is characterized by a period of growth into new markets and distribution channels. This effort makes this phase similar to the Aries time, with an emphasis on entrepreneurial pioneering spirit and research and development of ideas that complement the existing business and capabilities. The Libra qualities of diplomacy, equilibrium, and objectivity shepherd the business through this phase.
Scorpio
The Scorpio phase brings a dramatic point of crisis. The power of the original owner has been usurped by the structure of the business they have created. Banking relationships and investor dynamics have made the company reliant on outside resources, with corresponding requirements for compliance and control. Advisors, lawyers, and tax agencies seem to conspire to wrest the business from the owner. The original entrepreneur must decide whether to leave the company altogether or transform him/herself into a cog in a machine much bigger than he/she is. A seasoned, possibly international, management team must function in order to take the business forward into new markets.
There is no way even a very great leader can handle the business single-handedly at this stage. The business will be transformed during this stage, whether that means regression to a prior state, expansion, or failure. The business that survives will have its operating structures in place, its financing secured, and a strong management team ready for expansion. The Scorpio traits of discernment, integrity, and willingness to dig deeply to find the truth are important during this difficult phase.
Sagittarius
At this stage the business has weathered the Scorpio crisis and is preparing to be an institution. The hard-won lessons have turned into capability to operate, communicate, and lead.
In this phase there is expansion into new territories and products or services. There is a natural rise in risk tolerance because of the stable financing established in the prior phase. The new leadership team has weathered the storm and acts with confidence; this is the top of their game. The focus is the forward thrust, the move into the future to gain a larger market share and find new revenue and profit channels.
This is also when the business participates in philanthropic causes, whether born of a sincere desire to support the public or as a ploy to gain customers. The risk at this stage is that lack of organizational discipline, born of a company moving into too many new ventures at one time, will take its toll on planning and profits. The Sagittarian traits of optimism, risk-taking, judgment, and looking for opportunities near and far are characteristic of this phase.
In the next post, we’ll look at the mature phase of a business, and the transition into the next cycle.
