The 5 Phases Of Business Building
Six years ago, my husband and I moved our family to Colorado. As we began the search for a new home, we were inundated with new construction. Everywhere we looked, a new subdivision was being built, and that trend has largely continued. As I’ve driven by all these new homes, I’ve started to think a lot about what goes into building a house.
Digging and pouring the foundation. Framing the walls to give it real structure. Adding in the systems that make life easier – plumbing, electricity, wiring, and HVAC. Putting the trim and finishing touches on the inside. And finally, landscaping the outside to enhance the curb appeal. These five phases don’t happen overnight, and often the ground where the construction is occurring is messy, cluttered, and a little bit chaotic.
But there’s a method to the madness, and the same is true when you’re building a business. Over the next few weeks, I’ll be talking about each of these phases. Think of it as the masterplan for designing, building, and growing the business you really want.
What are the 5 phases of business building?
Phase 1: The Foundation
The foundation of a house serves one purpose – to hold the structure that will sit on top of it safely and allow it to stay upright. The same is true with your business. The foundation in this case is your vision and mission for the company; a solid business plan that factors in your growth strategy, future financial needs, and how you’ll make money; an initial business model and sales strategy; the legal and startup nuts and bolts; and an entrepreneurial mindset.
Phase 2: The Framing
Laying the foundation is totally a function of the vision you have for what your business will be. The frame is really about what it will ultimately look like. Who will you serve? Do they want what you’re offering? What do other “houses” on the market look like? What are the strengths and weaknesses of your structure? These are the bones of your business, and as you frame it out, you’ll see your vision start to take shape.
Phase 3: The Systems
Just like plumbing, electricity, and wifi are critical to making a home livable and functional, so are the systems you put in place to successfully run your business. There are four major systems you need for the business to function efficiently: marketing, sales, fulfillment and onboarding, and back-office. Most businesses have some aspect of these systems in place, and the more efficiently they run, the easier your job is.
Phase 4: The Interior Finishes
This is the part of the home building process that makes it your own, and when you’re building and growing your business, what you have to offer is uniquely yours. This is where you really get to tap into your creative juices and allow yourself to fully shine through. How you set up your services, what makes your business a reflection of you and sets you apart from others in the market place.
Phase 5: The Curb Appeal
I don’t know about you, but I love a gorgeous front yard. What people see when they step into your “storefront” is important. How you show up when you’re networking in person or online, your brand identity, and how you make people feel when they come in contact with you can be THE deciding factor in the sales process. Just like the interior finishes, this is the place you get to be creative and uniquely you, and even better, you can adapt and change as needed.
What are the elements of a strong business foundation?
Let’s dig (ha! see what I did there?) a little deeper into Phase 1: The Foundation. Entrepreneurial mindset is one of the biggest predictors of success as a business owner. When most people start a business, they get excited about taking their brilliant idea and making money with it. They think about the website, the logo, and the business cards. And while that will be important down the road, it’s not where you start. No one ever tells you that mindset is everything, but it is.
Think about an architect who’s been contracted to design a skyscraper. She doesn’t spend her time doubting that she’s qualified. She’s knows she’s done the hard work to gain the know-how. She brings all the tools of her trade – her knowledge, her previous experiences, the successes and failures, her creativity – to the table. As she draws up the blueprint and looks at what she’s created, she doesn’t doubt that the skyscraper is going to stay standing. She KNOWS it will, because she is the architect. That is her identity, the root of who she is and how she shows up.
The same is true for you as the architect of your business. You’re the designer. You have skills, knowledge, strengths and capabilities, and all your subject matter expertise to build and grow a business. You just have to believe it. You have to fully embrace your role as the CEO – the dreamer, the strategist, the deliverer of goods and services, and believe that what you’re creating is unique and necessary to someone in the world.
The strength of your business lies in your deep-seated belief that you have what it takes. That you deserve to be in the arena. That your vision will work, and that someone needs what you have to offer.
Is your business foundation strong?
With this idea in mind, I want to offer a simple way to evaluate the health of your business’s foundation. As you read through the following statements, honestly rate each one, using the scale of your choosing.
I have a clear vision for what I want my business to be.
I have a written business plan.
I have set short- and long-term goals for my business.
I know how my business will make money (pricing and service offering)
I have a high-level plan for growth
I have developed a marketing plan
I know how my business fits into the business marketplace
I know what makes my business unique or different from competitors
I know the “why” behind my business.
I am clear on my personal and business core values.
I believe I have what it takes to make my vision a reality.
I have a coach, mentor, or other personal board of directors to challenge, support, and hold me accountable.
I am accountable for the results I create.
This business allows me to do things I enjoy and spend time with the people I love.
I take care of myself physically, emotionally, spiritually, and mentally.
I’ve got the business nuts and bolts (bank account, legal structures, insurance…) in place.
As you reflect on your answers, I want to challenge you to do so with a critical eye. There’s no room for cracks in the foundation, as any homeowner will tell you. I also say that from personal experience. When I launched my first business, I did it without much thought. An opportunity was presented to me, and in order to take advantage of it, I needed to create a legal business entity. I did, but it would be years… nearly six… before I really addressed the fault lines – my own doubts about my role, the compete lack of vision for what I really wanted the business to be, and a real plan for growth.
When I created my consulting practice, I was intentional. I knew exactly what I wanted to create and why, I knew who I wanted to serve and how, I had a marketing and sales strategy in place, and the cash reserves to make it happen. I also built this business with a powerful personal board of directors, a business coaching team by my side, and a beautiful network of support. It hasn’t always been easy. In fact, sometimes it’s been downright chaotic and messy, but the foundation I’ve built is strong.
How does your foundation look? Is it solid and strong, or are the cracks starting to show? Have you taken care of the business basics? There’s no better time than now. It’s easier to address those weak spots sooner, rather than later, so that the structure you’re building can stand with your full confidence. It’s worth the time, energy, and investment… and a little dirt, sweat, and tears, to get it right.
