It takes a village to build a business, and without continual progress and growth, words like success and improvement mean nothing. When it comes to small businesses, every moment is a fresh beginning and knowing how to climb the top of the mountain is key.

It refers to the progression of a business in various crucial stages. You become a part of the “business cycle” from the moment you decide to set up a business. The truth is that many companies fail to pinpoint the stage their business is in.

More often than not, business owners claim that they are in the “growth” phase simply because they see their sales increasing year after year. However, there is a little more nuance to it than that.

Now, depending on whom you ask, the growth stages small businesses go through may differ. Some firms promote a growth cycle that contains four stages: existence, survival, prosperity, and maturity. Others suggest there are only three stages: startup, growth, and renewal/decline.

A quick searching spree will reveal numerous other opinions about the growth phases of a business. While it’s fair to state that business is not daunting, a look at each of the crucial stages of business growth highlights a unique set of obstacles to handle and overcome.

To help you identify these stages, here’s a clear idea of what to expect.

Stage #1: Seed & Development 

The first step in the business lifecycle is the soul-searching stage. It’s when you take a step back and evaluate your company assets and the practicality of ideas, even before your company is formally established. You’ve come up with a company concept and are ready to go for it. However, it would help if you first determined the viability of your business.

At this point, you should get opinions and advice from as many people as possible about the viability of your business idea: friends, coworkers, family, business acquaintances, or any industry professionals you have access to.

In the end, several aspects will determine the success of your business, including your abilities, the readiness of the industry you wish to enter, and of course, the financial position you’re in.

Stage #2: Startup Business

Many people believe that some of the early stages of a company’s life cycle are the most dangerous. According to the US Bureau of Labor Statistics, only approximately 80% of startups with workers survive their first year.

Businesses fail for a variety of reasons. One example is failing to make required modifications to your business model.

During the startup stage, you devote a fair amount of time and energy to bringing your business concept to life. You’re probably juggling several important obligations while trying to spread the word about your service or product. It’s not rare for a startup to wear many different hats to get their business off the ground.

To take your firm to the next level, make sure it is efficient and has a system in place that allows for expansion. This translates to:

• Delegating duties
• Encouraging a creative environment
• Recruiting staff

Prepare to take calculated risks as you progress from the startup to the expanding stage. Learn from your triumphs and failures and apply what you’ve learned to new growth possibilities.

Stage #3: Expansion 

If a business owner wishes to expand, the expansion phase introduces a new priority of quick expansion and ways to fund that expansion. The following are the main concerns of expansion-minded business owners:

• Delegation

Is it possible to assign responsibility to managers or other employees? Is it possible to keep management effective during a period of fast expansion? As the firm grows more sophisticated and expectations increase, owners must be able to delegate work.

• Cash

Think. Will there be enough funds to meet the increased needs that come with expansion? If you say no to this question, you risk making hasty and frantic investments, amassing too much debt, or simply burning out.

Companies in the “identifying expansion” stage are completely formed, with departments or divisions, sales and production separations, and a fragmented organization.

Stage #4: Maturity 

Businesses in the maturity stage have effectively scaled, and their key focus now is on preserving the company’s youthful spirit while consolidating revenue gains from rapid expansion.

Mature organizations have done their strategic planning, have a talented management team, and have financially and operationally distanced ownership from the company.

Companies at this stage have the most significant risk of reaching a low-risk state of sustainability while forsaking innovation, a condition known as ossification.

Mature companies must remain agile, anticipating market shifts and leveraging their market share to influence those shifts.

Keeping this in mind as you develop a business will help you plan for every growth phase and help minimize uncertainties and other challenges that significantly derail a business when not taken seriously. It’s as simple as knowing what to expect as your company grows to take control of its destiny.

Stage #5: Decline/Renewal

It’s a huge accomplishment to get to this point. Your business may have grown to be one of the most well-known and respectable in your industry, but that doesn’t mean you’re not on the radar.

The most dangerous thing you can do at this point is fall in love with the way you used to do business. It’s doubtful that what got you here will get you there.

Any corporation can become irrelevant due to new technologies, market conditions, or consumer preferences. In fact, this may be already happening:

• Has your industry been on the decline for a long time?
• Is your business suffering as a result of societal and technological changes?
• Do you feel like you’re losing ground to new competitors?

Even if none of these things are true, your company still needs to establish an innovative culture, continue investing in market and customer research, and spend in R&D. If, on the other hand, these statements are accurate, however, it may be time to implement a dramatic change and pivot.

Conclusion

Keeping this plan in mind will help you prepare for every stage of your growth and eradicate the biggest hindrance in business – uncertainty. Sure, almost everything worthwhile comes with a risk, but taking control of your business’s future can help you grow.

In addition, knowing where you stand can help determine your company’s long-term success and strategic planning. Just keep in mind that growth does not come with a single action. Instead, it is the consequence of courage, hard work, and persistence.

Once you have these ideals in place, no one will ever be able to break your stride, and success will become your shadow.

Source:Plato Data Intelligence