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Tip 37 – Success using Seven, Seven Stage Models

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I was at a networking event last week when someone asked me if I had heard about the ‘Seven Crises of Business Growth’. It set me to wondering and some research. The value of these kinds of models is in their ability to predict possible futures, enabling us to prepare ourselves. There are many seven stage models for Business Growth and Personal Development. The ‘Magical Number Seven’ often occurs and may be associated with the ability of our short term memory to hold information. (See "The Magical Number Seven, Plus or Minus Two: Some Limits on Our Capacity for Processing Information" by  George A. Miller. This, however, has been shown to be an urban legend .

Some models involve analogies or metaphor. I love the thinking they stimulate and the questions they provoke, because the answers can be really valuable. So, as an example of some of these useful models, here are seven different Seven Stage Models:

A. General model - The Seven Ages of Man by William Shakespeare

1. Infancy
2. Boyhood
3. Lover
4. Soldier
5. Justice
6. Pantaloon (wealthy suitor)
7. Second childishness

B. Business model – The Seven Stages of Business Life by Erik Luhrs

1. Idea: This is the stage when you are inspired to start a business with a vision.
2. In the Game: Once your business gains customers and stability enough to compete, you are in the game in a sustainable way and can start looking at ways to develop and grow further. 
3. Growth: You expand your business revenues and client base for greater success and more profits.
4. System: In order to continue growing, you need labour, money and timesaving systems in place. 
5. Replication: Your success formula has the solid foundation it needs so now you can duplicate it – with more locations, for example, in more places – for exponential expansion.
6. Assets: The business is profitable and others offer to buy it as a recognisable, lucrative asset. 
7. Walk-Away: Keep the business growing, sell it, licence or franchise it. The choices are yours to make and the options are plentiful. You have the financial and personal resources to pursue any goal or dream.

C. Business model – The 7 Stages of Business Growth by James Fischer

1. Start Up  (1 - 10 employees)
2. Ramp Up (11 - 19 employees)
3. Delegate (20 - 34 employees )
4. Professional (35 - 57 employees)
5. Integration (58 - 95 employees)
6. Strategic (96 - 160 employees)
7. Visionary (161 - 500 employees)

D. Personal Development Model - Hierarchy of Needs by Maslow

1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc.
2. Safety needs - protection from elements, security, order, law, limits, stability, etc.
3. Belongingness and Love needs - work group, family, affection, relationships, etc.
4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc.
5. Cognitive needs - knowledge, meaning, etc.
6. Aesthetic needs - appreciation and search for beauty, balance, form, etc.
7. Self-Actualisation needs - realising personal potential, self-fulfilment, seeking personal growth and peak experiences.

E. Business Model - The 7 Ages of an Entrepreneurial Business by Dragos

1. Enthusiasm
2. Naivety
3. Attention
4. Maturity
5. Expansion
6. Leadership
7. Exhaustion

F. Business Model - The 7 Stage Business Life Cycle from Winona National Bank

1. Seed: Most seed stage companies will have to overcome the challenge of market acceptance and pursue one niche opportunity. Do not spread money and time resources too thin.
2. Start-Up: If your business is in the start-up life cycle stage, it is likely you have overestimated money needs and the time to market. The main challenge is not to burn through what little cash you have. You need to learn what profitable needs your clients have and do a reality check to see if your business is on the right track.
3. Growth: The biggest challenge growth companies face is dealing with the constant range of issues bidding for more time and money. Effective management is required and a possible new business plan. Learn how to train and delegate to conquer this stage of development.
4. Established: It is far too easy to rest on your laurels during this life stage. You have worked hard and have earned a rest but the marketplace is relentless and competitive. Stay focused on the bigger picture. Issues like the economy, competitors or changing customer tastes can quickly end all you have work for.
5. Expansion: Moving into new markets requires the planning and research of a seed or start-up stage business. Focus should be on businesses that complement your existing experience and capabilities. Moving into unrelated businesses can be disastrous.
6. Mature: Businesses in the mature stage of the life cycle will be challenged with dropping sales, profits, and negative cash flow. The biggest issue is how long the business can support a negative cash flow. Ask is it time to move back to the expansion stage or move on to the final life cycle stage...exit.
7. Exit: Selling a business requires your realistic valuation. It may have been years of hard work to build the company, but what is its real value in the current market place? If you decide to close your business, the challenge is to deal with the financial and psychological aspects of a business loss.

G. The Seven Stages of Learning Teams by Parry Graham and Bill Ferriter

1. Filling the Time
2. Sharing Personal Practice
3. Planning Planning Planning
4. Developing Common Assessments
5. Analysing Member Learning
6. Adapting  instruction to member needs
7. Reflecting on Instruction

Whichever models you find useful, it is the transitions from one stage to the next that can be the most challenging. Adopting an attitude appropriate for each of the stages will be essential. For instance in business it is quite common to be fixed in one of the following mind-sets:

• Technician: In this mind-set you do as you were trained to, depending on leadership and decisions from others. Those dissatisfied will soon become inspired to move to the next level.
• Entrepreneur: With this attitude you venture out on your own. But once you become established, you need to delegate work to others and manage time and energy more effectively in order to grow.
• Business Builder: In this mind-set you increase success by putting human resources and technical and managerial systems into place. You expand your business – and your profitability – exponentially, freeing up more time and money to look toward the future.
• CEO: The CEO mind-set is characterised by abilities, tools, assets, and resources to plot your own course – both professionally and personally – and do whatever you want to in life. You can dream big and then fulfil those dreams because you have reached the pinnacle of success.

Coaching can help you through transitions and develop the appropriate mind-set for whatever stage of business you are in.

Finally, as coaching also helps behaviour changes, here are

Seven Behaviours that lead to Self-actualisation:

1. Experiencing life like a child, with full absorption and concentration.
2. Trying new things, instead of sticking to safe paths.
3. Listening to your own feelings to evaluate experiences instead of the voice of tradition, authority or the majority.
4. Avoiding pretence by being honest.
5. Being prepared to be unpopular if your views do not coincide with those of the majority.
6. Taking responsibility and working hard.
7. Identifying your defences and having the courage to give them up.

A coach can also help you with creating the behaviour you want to exhibit and in a myriad of other ways.