Phases of The Entrepreneurial Cycle™
Technician Phase – Years 0 – 3
The Entrepreneur begins business life as a Technician. Using skills gained in past employment the Entrepreneur becomes a self-employed professional and earns income through services rendered.
At the same time the Entrepreneur becomes responsible for all business costs and statutory obligations e.g. GST etc.
Supervisor Phase – Years 2 – 5
As the business grows (mainly through word of mouth and referrals) the Technicians seeks assistance and begins to employ other technicians. This requires the Technician to not only continue doing the work but also supervise the functions of another person(s).
This phase may continue until the business is employing 5 or more technicians across various disciplines e.g. technical work, bookkeeping etc.
Manager Phase – Years 5 – 10
Resulting from business growth, the Supervisor is elevated to a new level and becomes a Manager. As a Manager, the Entrepreneur is required to undertake activities that he/she has not previously encountered e.g. managing cash flow, improving business efficiency, developing marketing plans etc.
In many cases, these demands are beyond the skill of the Entrepreneur and outside expertise is required if the business is to survive.
Director Phase – Years 7 – 15
The business no longer requires day to day hands on involvement of the Entrepreneur in order to survive. The Entrepreneur is now required to focus on higher level activities e.g. strategic direction.
As a Director, the Entrepreneur must now focus on the future direction of the business so that it continues to grow and build value for its shareholders. As a result, additional management expertise is required to help guide and support strategic direction.
Entrepreneur Phase – Years 10 – 20+
The Entrepreneur has now reached the ultimate goal of attaining total freedom from working in the business. It becomes a time when new goals can be set and other lifestyle or business pursuits can be undertaken.
The business is now truly independent of its founders and full control has been passed to the Directors and the Senior Management team.
The Entrepreneur may remain as ‘Chairman of the Board’ overseeing the decisions of the Board and until such time as ownership or shareholder control changes.