In terms of profits, sales and growth this stage is sometimes a relatively flat period. The mature business is often making sufficient money to cover its costs, be stable and even flourishing in its market place and may well have invested large amounts of money in property, pensions and shareholdings. Some business owners are happy to reach this stage and keep everything on an even keel, very slowly increasing their customer base or product range, with relatively low-risk decisions being demanded of them and in reality the company could remain at this stage indefinitely provided it isn’t superseded by new technology or sudden market changes.
It is often at this stage of a company’s lifecycle when owners begin to think of their exit strategy and with that in mind they sometimes prefer to move a stage back to expansion to further increase the profitability of the business making it a more desirable prospect to potential buyers.
The challenges you will face are:
- Merits of expanding existing business
- Adding new products/services
- Improving on your market position
- Relevance of exploring new markets
- How and when you might want to sell your business
Others are happy to step back and let younger family members take over the day to day running of the company with any major decisions being shared by main Partners and/or shareholders when necessary. The Mature stage of a business is usually the most successful period and knowledgeable owners who continue to keep working ON their business with the help of their Accountant progress very happily and successfully on to the last stage�