Starting a business from the ground up can be one of the most rewarding experiences you’ll ever have, but it can also be one of the most challenging. For new entrepreneurs, having to wear so many hats and work at the same time can be overwhelming, but it doesn’t have to be that way! Here, we will explore the small business stages of growth so you can successfully take your company from startup to success.
1. Pre-StartUp
Pre-StartUp is all about research, brainstorming, and preparation. You need to identify your skills and target market and set up a plan of action. Figure out what you’re going to do when you get started and how you are going to do it. Learn about the pros and cons of your business idea before you make any investments or start building your team. A pre-startup checklist includes things like researching the competition in your field, conducting customer interviews, figuring out if there is room for growth in your niche market, identifying ways to use technology to enhance the customer experience (if applicable), and narrowing down who will be on your management team.
2. StartUp
When you start a business, you’re not just starting something—you’re also beginning a journey. Your first few years will be filled with challenges, but that doesn’t mean you can’t find success. Every business has to work through the same stages of growth in order to reach its full potential. You may experience some setbacks or have to restart your entire process when one phase ends and another begins; this is natural. The key is knowing what stage you are in and how it relates to each other stage.
3. Survival
Survival is the next phase following the existence stage. The business has proven its brand, and it can now focus on scaling. The goal here is to grow both the number of customers and the number of employees. This stage is typically where small businesses start thinking about things like marketing, expansion, and funding. In order for a company to survive in this stage, they need to look at sales and cash flow carefully. While growth is good during this phase, there are often a lot of unexpected expenses or revenue streams that don’t align with one another which may result in significant cash flow problems if not addressed properly.
4. Success
If you’re a small business owner and your company is thriving congratulations! You’ve achieved success. You’re now able to reap the rewards of having taken risks, put in the hard work, and done what it takes. And while you may be ready for your next challenge, that doesn’t mean you should give up on your current business completely. In fact, there are some benefits that come from maintaining a successful company that helps ensure it stays on the right track.
5. Resource Maturity
In this phase, managers have developed solid business acumen, and staffing is done with a clear understanding of the organization’s needs. Resource maturity is also marked by strategic alliances that are formalized as part of the company’s overall strategy. This phase, which is typically achieved after ten years or more in business, can be seen as a plateau where an entrepreneur can enjoy stability but only if they continue to innovate and plan for the future.
