No matter what kind of business you’re thinking of starting, you should know that every business goes through several stages until it completely matures. And each of these stages is an important part of how your business is going to turn up. Which is why you should pay close attention to every one of them. Today, we are going to be talking about the 5 main stages of business growth, what they entail, and how you can make the most of them. Let’s begin!
The 5 Stages of Business Growth
Stage 1: Existence
This first stage of business growth can be quite challenging, since you don’t have enough employees to take care of things in your behalf. This means that you will probably do most of the work. But what does the work entail? Well, since you are just getting started, your main concern now should be to find clients and draw them to your business. Also, make sure to keep them happy and deliver what they expect of you on time.
Stage 2: Survival
In this stage you are most likely making some profit. But that doesn’t mean that you have fully developed the business. Your main concern should be to keep the company afloat and get even more customers and revenue. Even if you will have a certain number of employees by now, you should still supervise everything carefully.
Stage 3: Success
If you are lucky enough to reach this stage (since some businesses are stuck in the survival phase for a long time), this means that you have a stable and consistent profit, and enough customers are faithful to your business. Now, you have two choices. The first option is to get even more involved in your company and look into developing it further. The second one would be to keep the company as a source of revenue. Your main concern would be to sustain the same amount of profit you make now. In this case, you don’t have to put a lot of effort into running the company. You can rely on your employees for that.
Stage 4: Take-off
Number 4 in the 5 stages of business growth is the moment when your business is almost fully developed. So you have a large number of customers. And this requires you to invest more money in hiring staff, buying equipment, and so on. This is a crucial stage for your business, since you could risk failure if you don’t know how to manage your expenses. But if you accomplish this stage successfully, it can turn your business into a big company.
Stage 5: Resource Maturity
Once you’ve reached maturity, you should focus on two main things. The first one concerns finances. You have to learn how to control them so as not to risk anything, but also how to consolidate them further. The second thing that you should take care of is to diversify your products and services, so as to keep up with market changes. This will help you draw in new customers and keep the old ones satisfied.
Now that you know what are the 5 main stages of business growth, you know what to expect once you open your own company. If you are aware of these stages and focus on successfully going through each one of them, your company should develop as you wish it to.
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