In biblical speak, the mark of the beast is represented by the number 666. There is however another 6-6-6 that can help business people understand the natural growth phases of a new business. 6 months, 6 months, 6 months. Here is a chart I developed in 2005 to eplain the phenomenon that I’d seen in my own and others’ business ventures.
Click the image for full-size view
Everyone has a value in business. It’s the financial value that we place on ourselves – $20k pa, $50k per year, or $5m pa if you happen to run the largest Telco in the country!
Whatever this value is, establishing a new business always requires something outside of this desired income to establish. Except for perhaps pornography, ammunitions or carbon emissions trading schemes that all seem to be golden geese, most of us will invest into a business for the first 6 months and have a return less than our “worth” – for a period.
In the second period (usually in the order of six months) it is normal to run at a break even. This may not be a breakeven in terms of the accountant or taxman, but will be in terms of the value that we are worth.
In the third 6 month period we will start to “make hay” and generally this profit above “what we are worth” equals the investment we made in the first 6 month period.
There are other factors that can influence these timeframes, such as luck, or experience, skill or previously established systems such as franchises, but the principles remain the same – we invest, breakeven and profit.
I am surprised at how often the six month period actually matches reality in a wide variety of industries, different personalities and levels of business – so much so that I would go as far as to call it a reliable RULE OF THUMB.
At the end of the 18 month 6-6-6 period we are usually clobbered with taxation, but that is another story!
Good luck with your own 6-6-6 “beast”.
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