The definition of the Abasia Point is the inverse relationship between Total Revenue from Operation and Net Profit Percentage. In other words, Net Profit Percentage will shrink with an increase in Revenue. (Click here for a picture of the Abasia Point)

Signs of the Abasia Point

Signs that a company is nearing the Abasia Point, include issues like; inability to grow the company past current revenue, inability to attract and retain good employees, inconsistent operational performance, out of control accounts receivable and accounts payable, employees that annually earn more than the owner(s), etc., etc. These are just some examples.

Causes of the Abasia Point

In order to create a successful business the owner must initially engage in three different roles; the Expert, the Manager and the President. Most companies start out expert centric. Lack of time is the most common reason for neglecting the other two important roles. This results in lack of planning and organization and results in the company growing outside the scope of control. The Net Profitability percentage from operation then decreases. This is in parallel with the development stage of a company.

Development Phases of a Company

There are five phases of development of a company.  The first three are inherently different in nature than the last two. The first three are linear and start with the Concept Phase. The second stage is the Survival Phase that leads to the Transition Phase. Typically the first three phases take about six to ten years. The last two phases are circular in nature and and are the Stabilization and the Growth Phase. (Click here to see a picture of the Five Phases)

BPS

You could compare us to a GPS. We are like a Global Positioning System for a business, a Business Positioning System. First we need to find where the business currently stands. From there we can determine where the business needs to be. With all the critical business element analyzed we can map the preferred route to take with all the necessary milestones in between. It allows for control of the business to simply by knowing where it is and where the next step will lead.