Loading Events

« All Events

  • This event has passed.

Senior to Junior Business Seminar

Senior to Junior Business Seminar

The Third Business Lifecycle: Growth and Establishment

April 27, 2023 @ 8:30 am 6:00 pm

April 27, 2023, at 8:30 am- 6:00 pm

Ras Amba Hotel

Investment

2500 ETB

Senior to Junior Business Seminar

Welcome to the Third Business Lifecycle: Growth and Establishment.

As a business owner, you are no stranger to the ups and downs of running a business. You have likely experienced the excitement of launching your business, the challenges of navigating the early stages, and the satisfaction of surviving and thriving through the second lifecycle. But what comes next?

The third business lifecycle, also known as the Growth and Establishment Stage, is a critical phase for businesses that have successfully survived the early stages. This stage also comes with its own set of unique challenges that business owners must navigate to continue their success.

AWiB’s 5th Business Seminar is designed to provide an overview of the third business lifecycle, its characteristics, and strategies to overcome challenges and take advantage of the opportunities. This seminar will provide you with valuable insights into the growth and establishment stage of the third business lifecycle.

We will cover:

  • Planning
    • Strategic and Operational Planning
    • Assessing existing product
    • Staffing and Management
    • Board Consideration
    • Succession Plan
  • Finance
    • Taxes
    • Accounting and IT System
    • Financial Forecasting
    • Cash Flow
    • Personal Finance
Planning

As businesses experience increased revenue and profitability, developing a strategic plan to guide future growth and expansion becomes important. This includes defining clear objectives and goals, identifying key performance indicators, and establishing a roadmap for achieving them. It is important to regularly review and update the plan to ensure it remains aligned with the business’s evolving needs and priorities. Planning should also include risk assessment and mitigation strategies to address potential challenges and threats. By developing a comprehensive plan for growth and establishing clear metrics for success, businesses can position themselves for long-term sustainability and success in the Growth and Establishment stage and beyond.

Strategic and Operational Planning

At this stage, the company has overcome the initial challenges of start-up and survival and now needs to focus on scaling up and sustaining its growth. Strategic planning involves a long-term vision for the company, setting specific goals and objectives, and developing a plan of action to achieve those goals. It also involves analyzing market trends, identifying opportunities and threats, and making informed decisions about the company’s future direction. By engaging in strategic planning, the company can align its resources, capabilities, and strengths with its vision and goals, and optimize its performance to achieve sustainable growth and success.

As businesses experience significant growth, they must ensure their strategy and operations align to achieve their long-term goals. During this stage, businesses must develop a strategic plan outlining their vision, mission, and objectives. They must also focus on operational planning to ensure their day-to-day activities align with their strategic objectives. By developing a robust strategic and operational plan, businesses can ensure that they have a clear roadmap for achieving their goals and can effectively allocate resources to achieve them. Additionally, this planning process can help businesses identify and mitigate potential risks and challenges, ensuring they continue to thrive in the growth and establishment stage.

In addition to strategic planning, operation planning is equally important in the third business lifecycle. Operation planning is the process of developing detailed plans and procedures for the company’s day-to-day operations. It involves defining processes, allocating resources, setting targets and goals, and monitoring and measuring performance. Effective operation planning ensures that the company’s resources are utilized efficiently and effectively and can meet its goals and objectives. It also enables the company to respond to market environment changes and adapts to new challenges and opportunities. By focusing on strategic and operational planning, the company can achieve sustainable growth and establish itself as a leader in its industry.

Assessing Existing Product

Assessing existing products is an important aspect of the third business lifecycle stage of Growth and Establishment. At this stage, businesses should review their product offerings to ensure they continue to meet their target customers’ changing needs and preferences. The assessment process should include a review of sales data, customer feedback, and market trends. Businesses may consider conducting market research to identify areas where their products could be improved or expanded. The assessment should also include an evaluation of the production process, including the cost and efficiency of manufacturing and distribution. By regularly assessing existing products, businesses can ensure they remain competitive and relevant in the marketplace and continue to drive growth and profitability.

Staffing and Management

As businesses enter the third business lifecycle, staffing and management become critical factors in achieving continued growth and success. During this stage, businesses need to ensure that they have the right people in the right roles to support their growth and expansion. This involves assessing the current staffing levels, identifying any skill gaps, and developing a strategy for hiring and training new employees.

Additionally, businesses in the third lifecycle must focus on developing effective management systems and processes to ensure their operations are efficient and scalable. This includes implementing performance metrics, delegating responsibilities, and developing a strong leadership team.

Managers need to provide their teams with leadership, guidance, and support to ensure they perform at their best. They should establish clear goals and expectations, provide regular feedback and coaching, and empower their employees to take ownership of their work. As the business grows, managers also need to focus on developing scalable systems and processes that can support the increasing workload. This includes implementing project management tools, optimizing workflows, and creating a culture of continuous improvement. By investing in effective staffing and management, businesses can set themselves up for long-term success and sustainable growth.

By focusing on staffing and management during the growth and establishment stage, businesses can ensure they have the human resources and management infrastructure necessary to continue their growth and achieve long-term success. Another critical aspect of staffing is talent development. The business needs to create opportunities for its employees to learn and grow personally and professionally. This includes providing training, mentoring, and coaching and creating a culture of collaboration and knowledge-sharing. By investing in its employees’ development, the business can build a highly skilled and motivated workforce that can drive innovation, improve productivity, and enhance customer satisfaction. Furthermore, effective talent development strategies can help the business build its brand as an employer of choice, attracting top talent and retaining its existing workforce. Ultimately, by prioritizing staffing and management, businesses can position themselves for sustained growth and success in the marketplace.

Board Consideration

As a business enters the third lifecycle stage of Growth and Establishment, having a well-functioning and effective board of directors becomes increasingly important. The board can play a critical role in helping the business navigate the challenges and opportunities that come with growth, providing strategic guidance, and ensuring good governance practices. At this stage, businesses may consider adding independent directors with specific skills and expertise to complement the existing board members. It is also important to establish clear communication channels between the board and management team, ensure the board has access to relevant information, and regularly evaluate the board’s performance. Businesses can increase their chances of sustained growth and long-term success by having a strong and effective board of directors.

Succession Plan

It is important to have a succession plan in place to ensure a smooth transition of leadership in the event of unexpected circumstances. A succession plan should identify potential successors for key leadership roles and outline the process for transitioning responsibilities. It is important to develop a talent pipeline within the organization, identify and develop employees with leadership potential, and provide them with training and development opportunities. Succession planning should also consider the impact on stakeholders such as employees, customers, and investors. By having a well-thought-out succession plan, businesses can minimize disruption during leadership transitions and ensure the organization’s continued success.

Speakers:

Kidest Gebreamlak

Tihitina Legesse

Senait Tsegaye

Nebiyou Samuel

Moderator:

Amakelech Lulu

Finance

Finance is crucial to the third business lifecycle stage of Growth and Establishment. At this stage, businesses are experiencing increased revenue and profits but may also face higher expenses as they expand operations. It is important to have a solid financial plan in place to manage cash flow, allocate resources effectively, and make informed investment decisions. This may include creating financial projections, developing a budget, and regularly monitoring financial performance. Businesses may also consider seeking financing options such as loans or investments to support growth and expansion. Working with financial professionals such as accountants and financial advisors is important to ensure financial decisions are well-informed and aligned with the overall business strategy. By having a strong financial foundation, businesses can navigate the challenges and opportunities of the Growth and Establishment stage and position themselves for long-term success.

Taxes

Taxes are important for businesses entering the third lifecycle stage of Growth and Establishment. As businesses grow, their tax obligations may also increase, making it essential to have a solid understanding of tax laws and regulations. This includes ensuring compliance with federal, state, and local tax requirements and identifying opportunities to minimize tax liabilities through deductions and credits. Businesses may also need to consider the tax implications of expansion into new markets or investment in new equipment or technology. Working with tax professionals such as accountants and attorneys can help businesses navigate the complex landscape of tax laws and regulations and develop effective tax strategies. By effectively managing their tax obligations, businesses can minimize risk and optimize their financial performance in the Growth and Establishment stage and beyond.

Accounting and IT System

As businesses enter the third lifecycle stage of Growth and Establishment, it becomes increasingly important to have robust accounting and IT systems in place to support operations and decision-making. This may include implementing an enterprise resource planning (ERP) system to integrate various business functions such as finance, accounting, and supply chain management. It is also important to ensure that accounting processes and controls are established to provide accurate and timely financial reporting.

As businesses grow, their IT needs may also expand, requiring additional infrastructure and support. This includes implementing cybersecurity measures to protect sensitive data and maintaining hardware and software to ensure optimal performance. By investing in effective accounting and IT systems, businesses can increase efficiency, improve decision-making, and support continued growth and success in the Growth and Establishment stage and beyond.

Financial Forecasting

Financial forecasting is essential for any business looking to grow and establish itself in the market. As businesses experience significant growth and expansion, it becomes increasingly important to clearly understand their financial performance, trends, and projections. It involves predicting future financial performance by analyzing past data and using it to develop a financial plan for the future.

Financial planning can include forecasting revenue, expenses, and cash flow to identify potential issues and opportunities. This process allows business owners to make informed decisions about investments, expenditures, and revenue streams. By developing accurate financial forecasts, businesses can make informed decisions about investments, staffing, and other critical areas. Additionally, financial forecasting can help businesses identify potential risks and take steps to mitigate them, ensuring that they continue to thrive in the growth and establishment stage. To effectively forecast the financials of a growing business, a few key steps need to be taken. Firstly, it is essential to gather historical data about the business’s financial performance, including revenue, expenses, and profits. This information can then be used to develop a financial model that takes into account variables such as market trends, competition, and economic conditions. Once a financial model has been established, businesses can use it to develop a financial plan that outlines revenue targets, expenses, and investment opportunities. It is important to regularly review and adjust the financial plan as the business grows and market conditions change to ensure that it remains relevant and accurate.

Cash Flow

Cash flow is a crucial component of any business, and it becomes even more critical during the third business lifecycle. Businesses in this stage experience significant growth, which often requires significant investments in inventory, equipment, and personnel. As a result, businesses must ensure that they have the adequate cash flow to support their growth and expansion. It is essential to understand the cash flow cycle and to develop strategies to improve cash flow, such as shortening the cash conversion cycle or implementing effective credit and collections policies. Effective cash flow management is essential to ensure businesses have the necessary resources to continue their growth and establish themselves as one of the dominant players in their industry during the third business lifecycle.

During this stage, a business requires more cash to finance operations, inventory, and investments. At the same time, customers may take longer to pay invoices, which can create cash flow gaps. If a business fails to manage its cash flow effectively during this phase, it risks running out of cash and becoming insolvent.

To ensure a healthy cash flow during the growth and establishment phase, businesses need to implement several strategies. These include forecasting cash flow regularly, tracking and reducing expenses, managing accounts receivable effectively, and exploring financing options. By forecasting cash flow, a business can identify potential gaps in cash availability and take proactive steps to address them. A business can conserve cash and redirect resources to more profitable areas by tracking and reducing expenses. Effective management of accounts receivable can reduce the risk of delayed payments and improve cash inflows. Finally, exploring financing options can provide the necessary funds to fuel growth while maintaining cash reserves.

Personal Finance

Personal finance is essential to the third business lifecycle stage: Growth and Establishment. At this stage, businesses are experiencing increased revenue and profits, and the business owner’s personal finances may also be growing. It is crucial to managing personal finances wisely to ensure the long-term success of both the business and the owner’s financial well-being. This includes creating a personal budget, setting financial goals, and managing debt effectively. Establishing an emergency fund, planning for retirement, and protecting personal assets through insurance is also important. By taking proactive steps to manage personal finances during the Growth and Establishment stage, business owners can enjoy the benefits of their hard work and ensure a secure financial future for themselves and their families.

Speakers:

Edom Dawit

Meseret Habtamu

Tadesse Kebede

Moderator:

Genet Abebe

Reserve by calling or texting: +251 978 100079 or email: communications@awibethiopia.org

Investment: 2500 ETB per person

April 27, 2023 @ 8:30 am 6:00 pm