The most important issues that a leader needs to focus on change over time, and they do so in clearly defined stages. All companies pass through four predictable stages as they grow and develop. What forms these stages are similar patterns of needs and issues faced by all growing companies. Each stage of business growth changes a company and during each of these stages the way the company operates and is managed has to fundamentally change to reach the next level.
These stages provide a way of analyzing a company’s growth, breaking it down, and ultimately managing it. The stages of growth help you assess where you currently are, what needs to be done now, and prepare for what’s coming next.
The four stages of business growth 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.
Unfortunately, companies don’t grow in a straight line from new venture to big company.
You see, as companies grow and get bigger, the challenges they face will change.
As a result, companies actually go through four major stages on their way to becoming a big company.
And during each of these stages the way the company operates and is managed has to fundamentally change to reach the next level.
In other words, as a company gets bigger, the nature of what it has to do to be successful changes and often these changes are dramatic.
This is why most companies don’t grow beyond a certain size; they simply don’t make the transitions necessary to get to the next level.
The “secret” of long-term growth and success lies in your ability to adapt to the changing needs of your company as it grows.
Fortunately, regardless of industry, these challenges and changes happen in a predictable sequence of four stages.
What forms these stages are similar patterns of needs and issues faced by all growing companies. And key developmental tasks that must be performed in order to make the transition from one stage to the next.
From the: New Venture Stage where the primary objective is finding a viable business model; to Early Growth, where the emphasis is on creating customers and driving sales; to Rapid Growth, where the focus is on scaling the company; and finally to long-term Sustainable Growth
So no matter which stage your company is in, you’ll be able to: Address the most important issues, needs and priorities at every pivotal point of your organization’s growth.
This allows you to: Predict how growth will impact your organization. Adapt your methods and management approach, to meet the needs of the company at each stage. And Focus on the right things at the right time