It is every entrepreneur’s wish that their businesses last as long as they live. Sadly, it is not always easy for things to go as planned. Sometimes, businesses start quite well but after a short while, they collapse. Others last for decades, and when they have hit the highest point, they lose clients because a relatively new idea is born thus the business collapses completely. One man understands these cycles and defines them to new and young entrepreneurs. Stephen Bittel, TerraNovaCorp chairman and founder says after running TerraNovaCorp for over forty years now, he has the experience of running a business thus lasting for many years.
According to Stephen Bittel, it is not hard to understand the business cycle especially if one has done any form of business for some time. “Any business has four phases, through which it goes. The interesting thing about the four phases is that they can take place anytime. They can take place within 6 months or 10 years,” says TerraNovaCorp founder Stephen Bittel. The experienced entrepreneur continues to explain the different four phases when he says that no business will evade the steps.
The CEO says that the first phase in any business is called expansion, which as the name suggests, everything is on the upward projection. Production, delivery of good and service during this phase is on the upward curve. The second phase, which usually lasts for a few months or years depending on the type of business, is peak. At this point, business is booming. Everything at this point seems to be doing well but suddenly, TerraNovaCorp’s CEO Stephen Bittel says, “Contraction comes in. This is a point where the business decides to be hard for everyone. Top company managers are faced with hard decisions. Products are not moving thus company revenue goes down, forcing the company to halt employment.” Lastly, there is trough when things are worse. With resilience, though, the cycle starts all over again.