There is a lot to do
Running a business requires patience and practice. A business owner very quickly becomes an expert in many fields. Marketing – no problem; drive a big truck – sure; engineering – maybe a little harder, but we’ll take a crack at it. We all know the phrase, “The show must go on.” And, through struggles, late nights, failures, and constant change, we do what we need to do. Running a business means delivering to customers even when it is hard and inconvenient.
But, does it always have to be that way? Can we not concentrate on the most exciting part of our business: making a sale and seeing our customers enjoy our work?
How do I know that I am in Incubation Stage?
The business is humming along, customers are engaging, the process is working. And now, there is a simple need to keep it going, the whole of it. Talk to customers, make the sale, issue an invoice, deliver the service, make sure everything is running smoothly.
Let’s see…. There is a website to maintain, a sales tax return to submit, payroll to pay, call the SEO vendor, get another credit card because the one in place now is maxed out, find out why the internet is not working, fix an email problem for an employee, obtain workers comp insurance quote because nobody mentioned that it was required before, buy an extra desk, and fix the internet problem again. And, hmmm, that’s just today.
Day in and day out, the business is managed. It’s as simple as that – a constant flow of activity. Years go by, and we find our lives intertwined with work.
Congratulations, you are in the Incubation Stage.
How do I know when I am finished with an Incubation Stage?
The realization that something has happened or that something must be done is a moment of clarity. In our business case, it is a point at which the company’s goals change and a new paradigm sets in. Incubation is a caretaker role, with a goal of managing the constant movement of business activity; and, it is based on current needs and short term outcomes. In other words, Incubation specifically focuses on managing revenue and costs (making sure that supply and distribution chains are healthy) and compliance issues (making sure that government regulations and enforcement actions don’t interfere with business operations). In a company facing a transition or an evolution, Incubation related functions are assigned to management staff, and executives are tasked with growing the company or managing existential threats.
If and when a decision is made to transition out of Incubation, the executive echelon must undergo an honest evaluation. The most important question is whether current executives have a required skill set and experience for the next stage of the business. In most cases, the vision of executives is tested, and those that are excellent at being caretakers may not be deemed a good fit for the company as it moves forward. This review and changes made is the exact moment of the business transition. The new executive mindset brings with it new goals, new activities, and a new set of challenges.
The company is now divided: the caretakers manage the existing business and executives plot and execute a transition out of Incubation.
(Not all transitions are into Growth and Expansion. Some are meant to dissolve the company, merge it with another, or break it apart into independent businesses, with examples being Polaroid, Hewlett-Packard, IBM, and Chrysler. The next business stage guides the evaluation of its executive team, and the mentioned examples represent good lessons in such evaluations.)
Setting a caretaker management team in place frees the executive team to make forward looking decisions, acting out their expected roles of being visionaries.
Who should use our services?
Executive teams faced with transitions require focus, gained from clearly defined leadership and a reduction of various distractions, such as operational management, internal conflicts, and external pressures. Our services help organize and remove some of the back-office operations from the existing management team. Outsourcing basic accounting, payroll and compliance management allows the executive team to concentrate on forward looking transitional plans. At this stage, legacy systems may be replaced with modernized options, employee rosters and compensation is organized and reviewed, and outstanding structural concerns are addressed.
Our team assists companies in transition organize their activities, so that they are more presentable to outside stakeholders.
