Page 286 - merged.pdf

CHAPTER 9 GROWING YOUR BUSINESS EMPIRE

details while you step in only when objectives are not being
met (management by objectives).

Your management approach should therefore take on more
of a supportive role. You will be much less task oriented and
a lot more people oriented. Your main role as CEO would be
to continuously motivate and inspire your key staff towards
the company’s vision and mission.

Stage Four: Maturity stage

You know that your
business has reached
maturity when your
sales/earnings growth
is slowing down or
declining. As your
company reaches full
market penetration and
industry demand is
stagnant or declining,
you will find yourself defending rather than capturing new
market share.

However, as one of the industry leaders, you will probably
be generating strong cash flow and will be paying out most
of this cash as dividends as compared to reinvesting it back
into the company.

Challenges:
As demand for your brand/products remain stagnant and
new competitors innovate new improved alternatives, your
main challenge would be to stay relevant and retain your
competitive advantage in the industry. If not, your brand and
products will soon become outdated and obsolete in

SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES 277