The 4 Stages of Business Growth
This is the first post in a five part series introducing the stages of business growth.
Can you imagine trying to build a skyscraper without a blueprint? Can you imagine taking a trip to an unfamiliar place without a roadmap or GPS? Probably not, yet leading a fast-growing company can seem a lot like traveling through uncharted territory. The best and fastest path may not be clear. You need to know what lies ahead, beyond the horizon.
Unfortunately, most leaders of growing companies navigate their company’s growth through trial and error, constantly reacting to the challenges of growth instead of anticipating and preparing for them.
A framework is needed to tackle a topic as complicated as business growth – a methodology that provides leaders with a better understanding of how successful companies actually grow over time, the challenges growth presents for companies, and the strategies, skills and capabilities required to manage growth. To successfully build and lead a growth company, you must recognize that there are:
- Four predictable stages of organizational growth that companies travel through
- Critical challenges ALL organizations face as they grow and scale
The most important issues that a leader needs to focus on change over time, and they do so in clearly defined stages. Businesses that seem to have nothing in common turn out to have the same challenges during these four major passages.
The stages of growth help you assess where you currently are, what needs to be done now, and prepare for what’s coming. The four stages is a simple, clear framework for identifying and understanding the management challenges associated with growth and for helping companies deal with those challenges in a more effective way.
As your business grows, these stages will be your guide – a reference – a way to understand what changes or additions have to be made and when they must be made.
The Four Stages of Organizational Growth
- New Venture: Primary objective is finding a viable business model.
- Early Growth: Emphasis is on creating customers and driving sales.
- Rapid Growth: Focus is on scaling the company.
- Sustainable Growth: Goal is to become an established, lasting market leader.
Do you know your company’s current stage of growth, what needs to be done now, and are you prepared for what’s coming?