"We have a lot of franchisees who reach a certain level of success, and then just stay there, even in markets when they could be experiencing major growth."

This was the comment made to me this morning from the director of operations for a services franchise. It represents a problem very common in today's marketplace; complacency. It's the by-product of moderate success, demonstrated by a lack of urgency and illusion of comfort, and often precedes serious problems.

Nearly all businesses go through a cycle of 4 phases. The first is the initial start-up phase. Motivation is high, and the business fragile, but growth occurs from the onset. The second phase is the accumulation of customers and market share, dictated by substantial growth. The third phase is the maturity phase, but can become what I call the "Complacency Trap."

Many businesses "level out" at this point for several reasons. Often, a business or franchise owner begins to reach their desired income. After years of working long hours, "dialing it back a notch" is a well-deserved reward. Many times the prevailing attitude is "we've arrived." Unfortunately, the by-product of this attitude is the creation of habits that will make this success difficult to sustain.

Perhaps a large percentage of sales are due to one customer or one market segment, which is relied on heavily. Maybe the novelty of the business has worn off, and there just isn't that "fire in the belly" that drove the first few phases. The point is that this lapse in business growth can become inherently dangerous. The forth phase of the cycle is referred to the decline phase, or more preferably, the continued success phase. Here are 5 ideas on how to keep out of the complacency trap and continue to grow your business.

1. Practice a little "healthy paranoia." Mark Twain stated, "Even if you're on the right track, sit still and someone else will pass you by." The competition is out there, and they aren't going away. Bear in mind that in order for most companies to get business, they have to take it away from someone else. Very few companies can corner a market in this day and age. Complacency can lead to taking customers for granted. This will make them susceptible to the courting of your competition. Are your customers satisfied or loyal? There is a huge difference.
2. Get some new and bigger goals. Many complacent business owners have hit some of their initial goals, so they are satiated. It's the striving towards goals that drove them to succeed in the first place. So make some new enormous goals to rekindle your spirit and purpose. It's better to have huge goals and fall short than to have pathetic goals and hit them.
3. Dump some customers. That's not a typo. Ever hear of the 80/20 rule? That 80% of the business is generated by 20% of the people and so forth? Well after 25 years of running a small business, my version of the 80/20 rule is; 80% of your headaches are caused by the 20% of your customers that are producing the least amount of profit. Why are you spending time with customers you aren't making money on? Chop away this group and replace them with a new and improved group, and your profits will increase. Even if you don't expand, hire more staff, or work more hours, your profits will go up. Do this every year.
4. Benchmark. One of the best ways to keep from getting too complacent is to watch how the leaders in your industry do business. If you are #2, how is #1 doing it? If you're #1, how are you measuring up worldwide? Benchmarking against the best is a sure fire way to wipe out a false sense of superiority and complacency.
5. Don't Forget To Have Fun. Remember when building your own business was challenging, fun, and exciting? That's what drove you, convinced others to trust and help you, and created your success. That's what will insure your continued success. Owning your own business is one of the truest ideals of the American Dream, a joy and a privilege, and not to be taken for granted.