Dave’s Model for Surviving Business Cycles and Profit Cyclones

Over the years of working with many different types of companies, Dave Hopson has observed a similar cycle in all of them. Each phase of this cycle requires different accommodations when it comes to people, processes, and technology. Dave is dedicated to helping companies plan for each predictable phase of their business cycle in order to avoid the collapse that can happen with poor planning and systems that aren’t prepared for what’s to come.

Every business begins in the startup phase of the business cycle. In this phase, everything is new, the people are passionate, and systems are pulled together by any means necessary. This may work brilliantly to get the company off of the ground, but as soon as production skyrockets, pieced-together technology and can-do attitudes won’t cut it.

Dave has learned to recognize the transition from startup to the next phase of the cycle, the accelerated growth phase. During this part of the cycle, a company starts receiving more business than its people, processes, and technology can handle in its current state. If you don’t adequately prepare for this stage, you can end up working hard for much less than you were expecting to gain. With intuitive foresight, you can prepare for the exponential growth and reap high rewards in return. It is all about aligning the three elements of your company to make it better, faster, and smarter.

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Typical Operational Challenges

Staff growth increases — which reduces your net margin.

Processes — creates cash-flow problems.

Data collection is slow or incorrect — resulting in faulty decision-making.

Processes and systems do not communicate — causing customer dissatisfaction.

Manual processes no longer work — which leads to overworked staff or a hiring frenzy (that will further reduce your net margin).

What Comes Up Must Come Down

A cycle of rapid growth can’t be maintained forever and will inevitably be followed by a time of waning growth. By being fully prepared for the stage of acceleration, you have also prepared yourself for the phase that follows. Dave’s solution is scalability. Every element of your business should be easily scalable to fit any stage.

To evaluate your company, let Dave help you determine where you are on this growth curve and your next steps.

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