SEAGEM

 

Strategic Business Development 

 

The development of a business has three important phases. The first, is the entrepreneurial phase. The second, is the corporate or “incorporation phase. And third is the transformational growth phase. While there are no specific timelines given to each phase of business development. Each phase is preceded by some sort of “crisis” that if not addressed leads the decline of the business.

the business development curve

Ideally every business should and hopes to develop along the business development curve as a going, growing and continuing concern. However, business statistics indicate that this is just not the case. unless strategic interventions are made at specific points X and Y along a business trajectory the business will with time and up at B or C. business development has to be intentional, anticipated and designed.  

Almost all businesses start at A with an enthusiastic entrepreneur with an innovative idea raising the sweat energy, capital and courage to venture into the unknown with a dream. This herculean initiative is often enough to launch the business off the ground and into the market place where some dreams survive longer than others. However, at some point the entrepreneurial energy begins to flag, even if it is by reason of the age and energy of the entrepreneur/dreamer. To survive “X” and move to the next phase, the enterprise need to pass on the dream to a corporation with structures systems and suitable administrative organization to sustain the enterprise. This requires a business in the entrepreneurial stage to transition to the corporate phase through “incorporation”. In this phase the entrepreneur may step away from the enterprise, share the dreams structure the business and let others run it. This has multiple benefits, not least, a well-earned rest and reward for the entrepreneur for his or her labor. However, in this stage the business also benefits from the injection of professionalism, branding and market loyalty, moderate growth and quality service guarantees. In the corporate phase bureaucracy and systems are introduced to manage operations. This is NOT a bad thing as some people assume. Though they are initially perceived as cumbersome, they actually make the business more efficient and expand its capacity to deliver quality services and survive “enterprise fatigue”. 

Nonetheless over time corporate momentum that allows a business to survive medium term challenges turns into corporate inertia as the organization loses organization sensitivity to changes happening around it. Interestingly, this sensitivity is what ignited business success in the market. In the corporate stage, there is always a temptation to think that we are the best and better than the rest, forgetting that the market and business environment is changing. This is when the business arrives at Y and must make critical strategic decisions involving major revisions to remain relevant and sustainable in the changing market over the long term otherwise it will end up at C instead of continuing to D. And, one might say the cycle begins again - after all business is a going concern. Sometimes this is called the “S” curve, but the crucial thing for every business then, is to appreciate where the business is at on the curve and take appropriate STATEGIC action at A, X and Y to ensure its continuity through to D.

Courtesy

 Seagem solutions

Strategic business development consultants

seagembdc@gmail.com