No matter what size business you have the Sigmoid Curve happens to all. Want proof?
Victoria’s Secret is broken and its Pink franchise is in the ‘early innings’ of a long decline (LB)
Victoria’s Secret and its Pink branch, owned by L Brands, are in the “early innings” of a long decline, according to an analyst at Jefferies.
Increased promotional activity in Victoria’s Secret has not only failed to drive sales, but has also weighed on margins.
Take a look at the Sigmoid curve graph. All business’s not matter the size will start, slowly move down then rise when they have their MPPT (Business Model, Methodology, Process, People and Technology) framework in place. When these business’s are enjoying growth in sales, profits, margins, market share they will hit the top of the curve and have a decision to make. Re-Invent or continue only what got you where you are and unknowingly slowly decline.
Want more proof? How about Sears? K-Mart, Blockbuster Video, Brick and Mortar Retail stores, Big Shopping centers & Music industry with CD’s,.
What is the answer to not let this happen to your $1M to $10M dollar business? It is really not difficult however it does take focus and dedication.
- First and foremost is understand this strategy, where you are in the cycle today.
- Second and more important is to establish a strategy, plan and specific actions that will allow you to start a new Sigmoid Curve when you reach top vs. “oh my gosh” moment of doing what Victoria secrets is dong. “Doing the same thing expecting different results”. At this time you must have a foundation of MPPT with a Vision, Mission, Purpose and Values along with a Unique Selling Proposition so you can determine what is the next line of product, or service or market you are jumping into.
- Third, be open to seeking guidance from experts in Business who can help YOU get there vs. doing it for you. For more on this reach out to a Business Coach who is that expert.
- Fourth, enjoy the fruits, rewards (financial and non-financial) of your Sigmoid Curve management success.
By Mark R. Steinke
Elite Business Coach