RR#116 - Survival to legacy: What stage is your business in?

You’re probably familiar with Maslow’s hierarchy of needs.

Psychologist Abraham Maslow created this hierarchy to explain how human needs are prioritized and how people progress through meeting their basic needs toward achieving their full potential.

From my experience in both building businesses and coaching hundreds of founders, there’s a similar experience entrepreneurs go through in the various stages of their business.

It looks like this:

Survival

Cash is oxygen for a business, and at this stage in the business, you’re just trying to generate enough of it for the business to survive.

This is common for bootstrapped startups and the earliest stages of self-employment when profit and income from the business are absolutely essential.

You’re most likely making short-term decisions, taking any business you can get, and the business feels very reactive.

It’s a hustle-and-grind stage, but you’re willing to do what you’ve got to do to get through it and onto the next stages.

Stability

Once you’ve figured out how to keep the lights on and/or pay yourself, you’ll start thinking about how to create a sense of security & stability.

This is when you really start to appreciate that all revenue isn’t created equally. And you’re seeing how saying ‘yes’ to everyone willing to pay you for services means saying ‘no’ to better opportunities.

So you’re starting to get strategic about generating the kinds of revenue that allow you to think long-term, like recurring and reoccurring revenue.

You’re not done hustling, but you’ve laid a strong foundation and put some money in the bank for a rainy day.

Sustainability

When cash flow and financial health are stable, you’ll start to think about systematizing different aspects of the business to ensure it’s sustainable for the long haul.

That means transitioning from being a ‘doer’ who hustles from milestone to milestone to more methodical execution.

This is where standards, systems, processes, and strong hires become crucial. As cliche as it’s become, at this point you’re not just working in the business, you’re working on it.

The goal here is to ensure your business can thrive without you having to be the force of energy pushing it every day. That’s what frees up your time and headspace, and makes it sustainable.

Legacy

When the business can sustainably operate and produce cash flow without consuming all of your time and energy, you’re free to think about creating something that outlasts you.

This stage is about making an impact beyond just having a profitable business. It’s where you start considering how you can impact the lives of the people on your team, your industry, or your community.

It’s not that growth isn’t a priority, but your focus just shifts to leaving a positive mark that continues long after you’re gone.

Navigating the Hierarchy

Like Maslow’s hierarchy, this isn’t a straight, one-way climb.

You don’t necessarily have to go through the survival stage in business. And nothing stops you from prioritizing the right kind of revenue from the start and productizing services to make delivery more sustainable.

Similarly, going through one stage doesn’t guarantee that you’ll progress to the next. I’ve seen far too many entrepreneurs simply get stuck in the survival stage, grinding away year after year for just enough income to take care of the essentials at home.

The biggest mistake I see people make? Making decisions as if they were at a different stage in the process.

If you’re at the survival stage, there’s absolutely nothing wrong with that. And the best thing you can do is embrace that reality, bust your ass to get through it, and start using the cash you’ve generated to make the business more sustainable.

Likewise, if you’re out of the survival stage, it’s time to start making investments in your business to stabilize it, make it sustainable, and start thinking beyond the hustle trap you’re caught in.

Where Are You?

So, where do you see yourself in this entrepreneurial hierarchy of needs?

Each level has its own challenges and rewards.

I appreciate having gone through the survival stage when I was replacing a C-Suite income. But I know how hard it can be to upgrade your mindset when you’ve gotten through that phase and need to start thinking differently.

No matter where you are in this hierarchy, remember that progress is rarely linear. Be patient with yourself, celebrate your wins, and keep pushing forward. And most of all, acknowledge the progress as you make it.

P.S.

If you’re struggling to move through this hierarchy or upgrade your thinking as you do, don’t hesitate to reach out. I’ve got a kickass community and some programs that may help. And if I can’t help, I’ll point you in the right direction.

Feel free to book a call to explore options here.