The Facts of Business Life by Bill McBean Page B

third level, From Survival to Success, is the point at which all the planning and preparations that were done at Levels 1 and 2 are implemented. It’s here that you must be relentless in your pursuit of putting those day-by-day processes into effect by measuring the results to make sure they’re accomplishing what’s expected, modifying them if necessary, and continuously working with your employees until those processes become second nature to them. The goal at this level is to move the business from the survival to the success end of the spectrum. That may sound simple enough, but the reality is that the majority of businesses that start Level 3 don’t make it past the survival end of the spectrum, and only 3 out of 10 survive more than 10 years. This means that Level 3 is not only where businesses begin, it’s also where most entrepreneurial dreams die.
    Although most of the failures at Level 3 can be traced to a lack of preparation in identifying appropriate opportunities and/or in designing how the business will operate, the fact is that some of those businesses could have been saved if their owners knew what to do, that is, revisit Levels 1 and 2 and make corrections. When problems arise at Level 3, failure is by no means inevitable, and owners have to understand that they have to fight to be successful. In fact, most owners become successful because of how they handle adversity. Things seldom go as planned, and Level 3 is more about working hard, being smart, and focusing on building a successful business one step at a time—sometimes by trial and error—than it is about being an overnight success.
    If, for example, you should find that your Level 3 business has stalled, or is not delivering the desired profits, you can go back to Level 1, look again at the information you gathered at that point, and determine if the opportunity you thought was there still exists. If it doesn’t, you can research the market again, find out where the opportunities are, and then change your company’s direction. However, if you find the opportunity does still exist but the company is not operating the way it should in order to take advantage of the market, you can return to Level 2, find the operational problems, and then create or recreate processes and procedures to enable the company to operate the way it should.
Leadership at Level 3
    Level 3 puts an owner through more turmoil and change than any of the other levels of the business life cycle, and accordingly requires him or her to exhibit a variety of leadership skills. There are, however, three of those skills that are particularly important at this level: (1) defining reality, that is, making sure you have a good understanding of where the business stands right now; (2) determining what has to be accomplished and in what time frame; and (3) motivating employees to buy in to the owner’s vision and continue working to help move the company forward. Doing this is no easy task, and it doesn’t get any easier. In addition, the leadership that’s required at the survival end of the spectrum is different than what’s needed at the success end, which means the owner’s leadership qualities and skills have to grow and improve as the business moves along the spectrum.
    As you move your company along the survival–success spectrum, you will probably find that one of the most difficult battles is the one you have with yourself. Effective leadership means staying calm in the face of adversity, remaining consistent in your ethics and discipline, having the patience to see the plan through, maintaining the courage it takes to make decisions, and being continuously enthusiastic about the future. And that’s not easy, especially when your knees are knocking, you have to reinvest profits time and time again to feed the growing beast, you’re constantly faced with self-doubt, and you have to deal with all the other issues that