Every business is in one of the following five business profit progression stages:

Learn how to identify your business profit stage and how best to change it.

The evolution of a business is triggered by the profitability, not the age or complexity of a business.  What matters is cash flow, sales, and profit management regardless of the age, size, or complexity of the business.

Ultimately every business will either become stuck or stable if they haven’t successfully stretched themselves into becoming a substantial business.  Business owners who fail their business will not become stable or substantial because they go out of business or become trapped in the stuck stage.

How you manage your business profit model dictates which of the following profit stages your business is in:

The profits a business earns are the best measure of management’s effectiveness in converting the assets of a business into cash.  The lack of profits or lower-than-planned profits from business operations indicates issues with either the profit model or management’s ability to execute the model.

Big businesses become substantial because they are very good at converting their financial transaction data into actionable information.  They do this to minimize their risk of loss as they put large amounts of money at risk in their business to earn higher sales and profits. Businesses who find themselves in survival mode are just the opposite.  They never look at the financial statements because they are too business fighting the fire of the day or trying to chase down cash to make payroll to bother with lighting their path forward with actionable information.

Each of the five stages of business profit represents a profit progression stage that you can either choose to remain in or manage your way into a higher stage of profit performance if this is your goal.  Every business moves from one stage to another based on the factors that impact its ability to earn profits from its operations.  Read the profit stage guide to learn how to determine your profit stage and what you can do to change it.

Not knowing which business profit progression stage your business is in robs you of the opportunity to improve the results being realized from management actions.  Knowing what profit progression stage you are in relative to the one you aspire to be in is the best way to focus on the critical few things you need to do differently to make more money with less stress.

If you want to schedule a time to talk more about the science of profit stages, click the button below schedule a time to speak with one of our certified business scientists to learn more.