The aim for any business is growth and to make large profit margins. To grow one’s business there is need for a growth strategy. With a well planned growth strategy a business can make the right moves to grow your business. There are 6 stages of business growth and you can find out where yours is.
1. Existence stage
This is the common stage for most businesses. The business is synonymous with the owner and they are heavily involved in the business. At this level the business has an unstable product. The focus is on obtaining clients and delivering products and services.
2. Survival Stage
There is a demonstratable business model. The key problem shifts to relationship between revenue and expenses. Although the business is still synonymous with the owner a hierarchy emerges. There are minimal systems development and basic cash forecast.
3. Success stage
There are highly structured and professional managers. There are advanced planning and management systems. At this stage there is need to review the strategic plan so as to steer the company forward. Owners can exploit the company’s success as a platform to expand.
4. Take off stage
Business is now expanding locally, regionally and internationally. There is decentralization and division and systems expand to manage multiple locations. The owner needs to delegate responsibility on order to improve effectiveness. The business will generate cash but it’s not enough to meet growth demands. Be cautious to avoid ill planned investments due to impatience. A business can bring in shareholders.
5. Maturity stage
At this stage a business would have achieved its vision. There is consolidation and control of financial gains. The business has extensive and well developed systems. The owner now takes a backseat and is discrete. The challenge now is to retain flexibility and entrepreneurship spirit.
6. Ossification stage
This is the death of the business. The business dies due to lack of adaptation. This happens when there is lack of innovative decision making and avoiding taking risks.