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Today we look at the third of the ‘sub-optimal’ positions to be in: profitable, but not growing:
1. As the business approaches (late) Treadmill
A business in Treadmill is often (though not always) a larger organization with a mature market and a recent history (while in Predictable Success) of above-average growth and profitability.
2. When the business slides into The Big RutIf senior management does not take the steps described above the organization will eventually slip into The Big Rut – at which point the organization has lost the ability to self-diagnose, welcomes bureaucracy, and is destined to quickly lose growth (as well as profitability) and slide eventually into Death Rattle – from which there is no recovery.
3. In conscious, focussed Fun
There is one stage at which profitability without growth is just fine: when the owner/manager group has consciously decided to constrict growth, and to keep the business in Fun.This is an entirely valid decision, and is one which many Mom and Pop businesses make – there’s nothing wrong with deciding you don’t want to scale your business indefinitely.