THE FIVE STAGES OF BUSINESS GROWTH. TIPS

business, it has the brand recognition and size to be financially healthy.

At this stage, the business would have grown enough to add more employees and probably a couple of managers. The brand might even be completely separate from the owner at this point. Accounting practices, marketing plans, and production systems would also be in place. With other skilled leaders in place, the owner will not need to supervise every aspect of the company.

4. TAKE OFF.

All stages of small business growth come with challenges that every company will have to overcome. Knowing where your business is in the cycle can help you see the solutions, you need to implement, create growth strategies, and plan.

Whether you are still toying with a business idea or have already taken the plunge into entrepreneurship, this guide will give you a bird’s-eye view of the stages of starting and growing a business.

STAGE 1: EXISTENCE.

In the existence stage, also called the start-up phase, the company’s business structure is simple. For the most part, the owner manages the operations or performs all-important operating activities. At this point, in the absence of investors, the owner is also the one funding the whole venture.

For many, especially solo entrepreneurs, formal planning such as profit forecasting for the company is at a bare minimum. For the best potential for success, the owner should do market research and create a business plan.

STAGE 2: SURVIVAL.

Survival is the next phase following the existence stage. At this point, the business has proven that it is a viable brand; it has found a market for its products or services and has acquired customers. In addition, most companies in this stage still operate with a simple structure. Even if the company now has employees, the owner oversees and makes the major decisions for the business. They may not have any systems in place for hiring practices, marketing models, etc. In addition, some businesses may still be operating with minimal formal planning, with the goals for the company existing only in the mind of the owner.

STAGE 3: SUCCESS.

The third stage of business growth is success. At this maturity phase, the company is thriving. It has established a strong presence in the industry to ensure consistent profits. In addition, as a mature

Even if a business owner simply wants to maintain its successful position, environmental changes and trends in the industry may compel expansion. This next stage is where companies can experience rapid growth because they can leverage the streamlined sales, marketing, and operating strategies and processes they have in place. Now, the main concern is how to grow and how to fund that growth. The brand can pursue many routes to expand, such as merging or buying another company. The leadership may also choose to increase the brand’s market share by developing new products and moving into new markets. Some companies also look into adding products and services to their existing offerings.

5. RESOURCE MATURITY.

After a successful take-off where the company has achieved the rapid growth it aimed for, the main concern of businesses entering the resource maturity stage is proper management of the financial gains from the last phase. It should also carefully review its systems and processes to resolve inefficiency issues that come with rapid growth.

At this point, the goal for the company is longevity. The business has the staff, the financial resources, and well-developed systems in place to achieve this goal as long as the owner keeps their entrepreneurial spirit and takes advantage of the resources available to maintain the company is standing in the industry.

CONCLUSUION.

At every stage of business development, there are new challenges to overcome. As a business owner, it may feel like you are always in need of capital and some type of support. Every person you bring in to support you at each phase of the business life cycle can either cost you time and money or complete the task expertly and help you move forward. This is why it is important to have a solid plan, ecosystem that will help you go and grow through every stage.