Page 19 - BUILDING BETTER BUSINESSES, FOR A BETTER ECONOMY -( David White - DRG )

MOVING FORWARD

t is important to recognise that businesses go through cycles of change and they grow
and develop.
I

The S-Curve helps to describe this “transformation” process and is an essential consideration
for business leaders to understand.

As we can see in the picture above, S-Curve 1 activities can largely be described as “chaotic”.
S-Curve 1 is about survival... sustainability yes, but at this stage the entrepreneur is still trying
to understand his or her business.

Operational and delivery processes change as the entrepreneur better understands his or her
customer and supplier requirements and expectations.

Often at S-Curve 1 the entrepreneur is working from their home or a friend’s office and generally
has low overheads. Only core staff are employed, and often they are on fixed term or project-
based contracts. Family members and/or friends often extend support at this stage. As an
example, mom may have bookkeeping skills, and provides invoicing and bank reconciliation
support to the business.

Risk typifies the behaviour of entrepreneurs, and in S-Curve 1 this pressure persists on a day to
day basis. If you borrowed money to set up a company, then the pressure is to ensure it can be
repaid by the business. If you have made commitments to clients, or have shaken hands with a
supplier, then business failure will result in diminished trust and reputational damage.
Imagining and building a business takes much thought, purpose and intention, and at
S-Curve 1 the entrepreneur is at most risk of losing time and effort invested if the 17
business does not succeed.