Get Off That Plateau

When the startup passes the first hurdle, the break-even point, and starts making a profit, things alter for most businesses. After some time, unless the culture of the company continues to focus on constant improvement, alter, competitiveness, and customer-pleasing actions, the company starts a new stage. I call it a plateau.

Startup businesses open in a rush of adrenaline, energy, activity, the necessity to the customers and show appreciation for their patronage. But when the novelty wears off and the excitement wanes, that high-energy activity starts diminishing. It is only natural. It is impossible to keep that adrenaline coursing through the company's veins on a regular basis.

The comic thing is that, in most cases, the issue is not that the owner gets lazy, usually the owner is working hard by doing or jobs - executive as well as lower level tasks. That is the mindset that leads to exhaustion, frustration, and finally anger. The issue is that most blame the economy or a specific situation in lieu of realizing that their business in on a plateau of its own making.

The plateau stage is flat - if the business climate is nice there might be some growth, if the economy is soft there may be no growth or a sales decrease. There will be similar changes in profitability depending on the business climate for that company. A business may go years on this plateau, but if the business climate ever turns dreadful, then the business gets in actual trouble as evidenced by above-average number of closings historicallyin the past few years.

It takes recognition of the situation, dispassionate analysis, and planning at the beginning of the system, then dedication to alter and the determination to implement alter, which will permit the owner to start getting off that plateau to much higher ground.

Two times it is recognized that the issue is internal, and this is a rare occurrence, the owner must start managing, planning the future, changing the business and the businesses culture to meet the needs of the future, in other words, transform the company and the way it is managed.