Discover the 3 Phases of a Network Marketing Business.

In this Network Marketing business article I'll cover the three phases that any business goes through.

Every business has its start-up phase. Hopefully it then progresses to the routine running phase. Finally comes the exit phase.  The exit is about how the business ends - and generally they all do at some time - it's just a question of how!

The same is true of your relationship with your networking business.  You have your start-up phase which is about how you get going.  Then there’s the routine running of your business whilst you build it.  Finally comes the exit from this routine work. This latter phase raises a number of questions such as:

• ‘Should you retire?’
  ‘Do you sell the business?’
  ‘What other alternatives might there be?’

To have a truly successful business you need to navigate each of these phases.  So let’s examine each one and see some of the potential pitfalls and some of the solutions.

1.   The Start-up Phase: 

For many this is exciting and dynamic and about creativity and possibilities.  This can generate tremendous energy and excitement, and that energy gives us a real buzz.  However, paradoxically, the same process can be tremendously draining of our resources.

We can end the start-up phase of the business feeling tired and, in many cases, financially depleted.  To me, one of the major attractions of a networking business is that much of the start-up has been done for us. That includes product development, all the technical details and boring legal stuff, arranging the logistics and so on (and I apologise to anybody I have inadvertently offended here – it’s just not my bag!)

In this phase of a Network Marketing business, the focus is on understanding how it works and explaining to others in our own words, what it is we're doing.  It takes time and persistence to get this right.  If done correctly (and almost universally this does require someone to coach and mentor us through it) we can have a smooth transition into the next phase.

One of the reasons for the high drop-out rate in Network Marketing is that most people are not helped through this initial start-up phase.  They’re told to read the manual, turn up to the meetings, listen to the conference calls and then just get on with it.

I suspect this usually happens because the sponsor themselves doesn't know how to pass through the start-up phase, indeed, they may not even know anything about the next phase – running their business.  If we already had the skills to successfully get through the start-up phase then we wouldn't need to be in Network Marketing - we would have started our own businesses.

To produce a Network Marketing business that’s truly ours, takes a lot of effort to craft the words and descriptions that we use when talking with others.  This is why the right level of support is essential to ensure success.  And the support needs to come from a person who understands the issues and, very importantly, where the start-up phase is heading.  (In the words of Stephen Covey - “Start with the end in mind”.)

During this phase there is also a net outflow of resources.  Time, money and energy are spent on getting things going.  Even though Network Marketing is often sold as a ‘business in a box’ (i.e. ready-to-go) there is still much exploration to do to find exactly the right way for you.  Multiple dead ends will almost certainly be explored in the search for the right methods that fit best with you and your personality.

At this crucial, initial stage, you need to have the right support to make sure your transition is done properly.  You need the help of someone who understands the journey and how to help you along it. Your coach/mentor can give you clues, hints and guidance. They can even prevent you from falling into many of the pitfalls that exist (and that so many before you have inadvertently crashed on) but ultimately, you'll have to decide on the right way for you…

2.   The Routine Running Phase: