Do You Know the Growth and Maturity Stage of Your Company?

As an experienced Business Consultant, I work with companies in a wide spectrum of growth and age, and I find these growth stage characteristics and issues are pretty close. While not an absolute, it gives a good checklist to review and keep in mind when analyzing your business, particularly when developing a SWOT Analysis in your Strategic Planning. It also lets you know as a business owner wherever your business should be, and if it is on the negative side of things, then you know where you need work. If you are doing better than indicated for your stage you are ahead of the curve and pat yourself on the back. But reckon, business is fluid and can change at a moment’s notice- keep working hard to stay ahead and use these growth issues and characteristics as a forecasting tool! Knowing what challenges lay ahead in your company’s growth is an excellent strategic planning tool!

I will discuss the common issues and characteristics and success factors companies experience as they progress from one Growth Stage to the next. Understanding the challenges and threats that lay ahead can help a company tremendously when it develops its Business Plan for growth. With in this business planning process a company can use its Strategic Plan process to identify and meet these challenges and threats, commonly called a SWOT analysis. Having a checklist of what the different issues and characteristics are for each stage of company growth can be an excellent tool for a company’s planning. Do you know what lays ahead in your company’s growth?

Small Business Growth Stages

– Basic Existence Stage

- Main Issues and Characteristics

• Obtaining clients
• Delivering the product and service
• Practicable Services
• Expand from key customers to broader sales base
• Have enough Cash on Hand to cover Cash Flow demands
• proprietor performs all Management functions
• Often a lack of Planning & Systems
• Business just trying to remain viable
• Have yet to stabilize production or product quality
• Trying to gain sufficient customer acceptance
• Business has strong demand on the Owner’s time, cash and vitality

Advice: Get experienced help with Strategic Planner to help you survive this business stage and grow into a viable business.

– Survival Mode Stage

- Main Issues and Characteristics

• Business demonstrates viability as business entity
• Satisfies a base of customers
• Focus shifts from existence to managing Cash Flow
• Generate enough Cash Flow to break even, stay in business and finance growth
• Focus on Market Niche exploitation
• Simple organization and the owner begins to delegate to a manger.  However, strong direction and control still rests with the Owner.
• Planning concentrates on Cash Flow Forecasting
• Systems development & execution in early stages.

Find experience with Strategic Planning Consultants to assist you in surviving as a business and to turn the corner and grow toward the Success Stage.

– Obtaining Success Stage

- Main Issues and Characteristics

• Exploits its Market Niche
• Obtain Strategic goals
• Expansions is important but stability, control and profitability are key as well

- Owner’s Options:

• Expand and Grow the business
• uphold Stability as a means of support to the owner
• Owner considers disengagement from the business
• Market penetration
• Competitive Edge
• Functional Management & Owner Delegation
• Management & Key Employee Competence
• Generating sufficient Cash Flow
• Planning for rough patches
• Professional Staff:  i.e. Controller, CFO, CEO
• Production/ Service, Marketing, Strategic and fiscal Systems established
• Operational Budget Management

– Rapid Growth Stage

- Main Issues and Characteristics

• Committed to a Growth Strategy
• interested? with adequately backing the growth stage
• Need good ownership delegation to improve managerial effectiveness.
• Enterprise develops complexity.  Performance Control Systems are important
• Established Expense and Budget Controls to maintain strong Cash Flow.
• Profitability Planning Systems are critically important
• Effective Financial Planning, Forecasting, Modeling and Strategy
• Very skilled, experienced and competent Management Structure
• Company systems are tested, altered and highly delegated, but there is strong Strategic Leadership from Top Management
• Capacity to become a big business
• Strong Potential for Business Sale Premium
• Effective Delegation and reliance on talented Managers & Key Employees are keys to success
• Founding Entrepreneur(s) can opt out of business and have a more advisory role

Growing rapidly can be a problem all into itself. Contract with Business Planner to help steer you through this often challenging business high growth stage.

– Maturity Stage

- Main Issues and Characteristics

• Consolidate and Control profits
• Retain advantage of proportional small size, nimbleness and flexibility
• Quick market change response time
• Still retains the entrepreneurial spirit
• Growth causes inefficiencies so must ensure the Management Structure continues to grow and evolve.  Strong Managerial Talent
• Strong Budget, Operational and Strategic Planning capability and focus
• MBO System (Management by Objectives)
• Cost Systems
• Extensive & well highly-developed company systems and Management Structure
• Strong Financial Resources
• Convert Entrepreneurial spirit to a Formidable Market crusade
• Strong Market Niches and Competitive Edge
• Exceptional Risk Management
• Profitability boosted by successful Innovation
• intensiveness in Market Branding and Recognition
• Maintain Competitive Edge by anticipating Market changes and adapting better and quicker than competitors

About The Writer

Frank Goley is a Marketing Consultant for ABC Business Consulting. He is a professional in company planning, advertising, strategic planning, business enterprise turnarounds, on the internet marketing and advertising and search engine optimization (SEO). Frank has created over 170 Business Success Articles and E-Books. He is creator of a Business Plan Book and writes the Business Success Weblog. Frank genuinely enjoys supporting organizations to start, grow, turnaround and succeed!

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