An established business will have some or all of the following attributes:
- in existence for a number of years
- generates cash
- good financial stability
- all the problems associated with growth have been overcome
- there is an established customer base.
But, by definition, a mature business is not growing any more. It is essential that the reason for this is discovered and remedial action is taken.
Here are some questions you should ask:
- The business is stagnant/static.
Should you re-appraise your Marketing Strategy?
- Has the product or service come to the end of its useful life?
- Is reinvention and/or diversification required. Diversification is potentially a very risky process, and the process should be fully researched.
- Has management lost its enthusiasm?
- Is new management required?
- Do you need to revisit the Product Lifecycle?
- Human resources (staffing). Do your staff have motivation and job-satisfaction problems? Do you have the management skills to deal with this situation?
- Should you consider selling the business? If so, are you aware of the Taxation issue involved? Do you need an accurate valuation of your business from an experienced professional?
Next Stage: Business Decline