To grow a business, even if it’s a small one, requires great skills and hard work. There are a few stages to understand business growth which requires analyzing the issues and growth patterns of small businesses in such a way that it identified the common problems that arise in running a business.
Here are five key stages of small business growth:
Stage 1 of Business Growth is Existence:
“There are no secrets to success. It is the result of preparation, hard work, and learning from failure,” said Colin Powell, an American politician, statesman, diplomat, and United States Army officer who served as the 65th United States secretary of state from 2001 to 2005.
In starting every business the most important thing is to focus on identifying your targeted audience to which you are going to sell your products and services. This will be your first stage to get the answer about does your products and services are enough to grow your business or you will need some extra improvement to attract more new customers. When you are able to manage your financial issues and customer-related problems then you can shift to the next stage.
Stage 2 of business growth is Survival:
When the business moves to the second stage means that it has proven its business plan and future vision of growing the business. The second is mainly focused on the business budget and finances. The business owner will try to identify if their business budget is capable of dealing with situations or issues that may occur in the business, does their finances can be enough for any replacement or improvement for the business. This should help to reduce the overflow of money in the business.
Stage 3 of business growth is Success:
This is a pivotal point for owners in that the business has reached economic health, at this time the owner of the business will focus on deciding whether they want to grow their business or they want to make the business a financial backup to support their future. This shows that the success stage has two-track to choose from.
Stage 4 of business growth is Take-off:
At this stage, the owner is totally focused on increasing their business for greater growth. Both operational and strategic planning is being actively done, with managers having very real responsibilities. The owners will try to delegate most of their work tasks to their managers and they will only manage the financial management of the business. Also, the owner will make sure that in the aim of growing their business, they do not just waste their money and should have a good handle over their money overflow.
Stage 5 of business growth is Resource Maturity:
At this point, the company has the staff and financial resources to engage in detailed operational and strategic planning. The owner of the business has taken their path away from the business, delegating all the business work to the managers and focusing on their retirement. The owner will let their business grow with help of their employees and managers, and they will enjoy the benefits of the business.
Anson Funds is an investment management company that serves a lot of customers worldwide. Moez Kassam is the co-founder of Anson Funds.