There are three cycles of growth in a business that any company experiences, during good times and bad. By recognizing each phase when it happens, you can provide the required amount of work to keep revenues growing or, in bad times, at least stable. More importantly, by managing each phase appropriately, you can get more out of good times and emerge stronger after bad times.

Everybody’s Favorite Phase: Acceleration

The best phase is called “Acceleration.” During this phase, you have to put very little effort into business development, because customers/clients come to you. You have established trust and credibility in your marketplace, created automatic marketing systems, and developed a huge contact list. Your business development machine attracts all the customers/clients you can handle. Your goal when you are in this phase is to keep investing in business development, as well as in the capacity of your company to deliver, in order to grow. You also want to build up a cash reserve for when a recession or other form of downturn might hit.

The Second Best Phase: Momentum

The second best phase is called “Momentum.” During this phase, things are fine. You have a good number of customers/clients, and are making a decent living. You invest time and money in business development, and get results equal to the investment you make. In Acceleration, you might invest one unit into business development to get back five or ten units of results. In Momentum, you get back one unit of results for every unit you invest in business development. Your goal in this phase is to break through to Acceleration.

The Most Difficult Phase: Kick Start

The most difficult phase to be in is the third phase, called “Kick Start.” This phase feels like pushing a rock up a hill. You have to invest five or ten units of effort in business development to get even one unit of result back. Your goal during this phase is to kick start your practice and get momentum.

It takes intense focus and effort to do this, but is worth the effort to get back to the Momentum and then Acceleration phases. If you have been smart with your cash flow and built up a cash reserve during the other two phases, you will have a much easier time during this phase. In fact, during the Kick Start phase, cash can even be a competitive advantage, because competitors who lack a cash reserve may have to shut down.

You can be in the kick-start phase for a couple of reasons. Almost anyone starting out automatically begins in this phase, because they need to take lots of action to get results. Business owners who stop marketing soon find themselves in this phase, too. Finally, a severe economic downturn can force many businesses back into the kick-start phase.

When you experience the Kick Start Phase you and your team need to be prepared to put in extraordinary efforts to get the results you expected in the Momentum and Acceleration phases. You need to get back out there in the field and build relationships with prospects and customers. You need to cut your operating costs to what you absolutely need (perhaps using Kick Start as an opportunity to get “lean and mean” once again). If you have cash during an economic downturn, you might consider – as companies like Intel are famous for doing – buying up competitors or investing in new capacity so that you emerge stronger when the economy recovers.