If you are reading this blog, then you are probably someone who has recently started a business and is looking for ways to grow. We understand that it can be hard to start a business and it is not always smooth sailing, which is why we are here to help.
Although each business is different, most small businesses tend to experience similar situations and stages of growth along the way. Many small businesses don’t work out due to a range of reasons; every business has knockbacks along the way, but it all depends on how you react to them.
If you give up easily, then you are not going to succeed; however, if you face these challenges and don’t give up, then you are destined to succeed.
Throughout this blog, we will be discussing the different stages of small business growth, assessing business growth strategies and more. Interested? Read on for more information!
What Are the Different Business Growth Stages?
When it comes to business growth, there are 4 stages that most businesses experience. These stages are known as:
- The existence stage
- The survival stage
- The success stage
- The take-off stage
- The Maturity Stage
Keep reading for a breakdown of each stage and what it means for your business:
Stage 1: The Existence Stage
If you’ve had a business idea, have taken the risk, and have started a small business, congratulations! It takes a lot of commitment and effort to set up a business, no matter if you have product or service offerings, so if you have come this far, we wish you luck!
There are many key success factors in business and getting your company up and running can be challenging. This is because there are a range of things you need to consider before jumping into the deep end. Firstly, you need to figure out your marketing strategy to allow you to attract new customers and fulfil their orders.
Whether you have just started your own clothing business or you have opened up a new cafe, finding your first customer and completing their order can be hard. It is the hardest part of the existence stage of your business.
But what makes this so difficult? It can’t be that hard to find your first customer, right? Wrong. It can be challenging to receive your first order, and this can be due to many factors. Here are some challenges you may face at the existence stage:
Challenges:
- Generating sales
- Gaining customers
- Building trust with your customers
If you’re in the startup phase, you are a new business owner and have no reviews or previous sales, then some customers may be wary of this and avoid purchasing from your business.
Solutions:
- Post regularly to your social media accounts.
- Post client testimonials to your platforms.
- Create a quality website that ranks on the search engines.
Stage 2: The Survival Stage
The second stage of growth for small businesses is the survival stage. Once you have successfully made your way up from the existence stage, you should have a consistent flow of customers, and you will be able to deliver products and services easily.
The survival stage is the stage in which communication is crucial. Not only is it important to be able to communicate with your team, but you also need to communicate with your customer base and clients effectively. Here are some challenges you may face at the survival stage:
Challenges:
- Retaining customers
- Continuously providing high-quality products and services
- Maintaining communication
Strategies:
- Make sure to provide regular feedback forms so that you understand your customers and are consistently meeting their expectations.
- Make sure you have the right amount of staff to continue offering high-quality products and services.
- Make sure that you regularly communicate with your customers through forms or social media.
Ensuring that you have a business plan and are constantly keeping up with orders, potential refunds, and messages is important when running a business. This is because you need to keep your customers engaged to generate more sales.
Overall, to do well in your business, you must be constantly engaging with your customers, keeping your website and social media platforms up to date and making sure you constantly have the correct amount of stock.
If you are not keeping up with these factors, then your business will slowly start to lose customers, and in the worst-case scenario, your business will fail. However, if you do follow these steps effectively, then you will be able to move on to the next stage of business growth: the success stage.
Stage 3: The Success Stage
The next stage in the business life cycle is the success stage. If you have made it to this stage, congratulations! It’s onward and upward from here. During this stage, you are going to have to decide whether you want to push for further growth or let your business enjoy stable profitability.
If you are looking to grow your company even more, then this will mean investing what you have back into the business. Now, this can be risky as you don’t know whether this move will allow your small business to grow or, in the worst-case scenario, leave you bankrupt.
It is a risk most businesses take, and if you know how to grow your business effectively, then we suggest you go for it. After all, you don’t know until you try! However, having stable profitability is enough for some business owners, as it allows them to take a step back from their duties. Here are some challenges you may face during the success stage.
Challenges:
- Deciding between growth and stability
- Hiring additional staff to help
Solutions:
- Develop a strategic plan that determines your goals and how you will meet them.
- Create job applications and advertise on a range of platforms, such as Indeed or LinkedIn.
Stage 4: The Take-off Stage
If you decide to take the risk and grow your business even more, then you are now in what we call a take-off stage or expansion stage. This is where your business experiences growth for a short amount of time. During this stage, it is more important than ever to ensure you have the correct amount of stock and resources you need for your business.
This is because if you are going through the growth strategy with strategic planning, you are bound to attract new customers. If you don’t have the stock that you have advertised on your website or are unable to meet the demand for services, this is where your business can go downhill fast. Here are some challenges that you may face during the takeoff stage:
Challenges:
- Managing rapid growth
- Hiring and training new staff
- Maintaining product quality
Solutions:
- Create a growth strategy.
- Advertise for new job roles via Indeed or LinkedIn.
- Make sure you have enough staff to maintain the quality of your products.
Stage 5: Maturity Stage
The final stage of business growth is to take control (also known as the maturity stage). When you reach this stage, you will be more familiar with how your business runs and will become a mature business.
You will have predictable outcomes and results. Although you have made it this far, you mustn’t lose sight of what got you to where you are today, as this will allow your business to continue growing.
Whether you are a small, medium, or large business, you mustn’t lose sight of how to continuously grow your business and maintain your profit margin through each growth phase.
Challenges:
- Staying motivated
- Continuously providing excellent customer service
Solutions:
- Set small, achievable goals and break down large, complicated tasks.
- Make sure that you are constantly communicating with clients and put them first at all times.
Move Online Can Help Your Business Grow
Here at Move, we offer a range of services to help you and your business thrive and rise through these rapid growth stages. From online meetings to business coaching, netwalking and mastermind groups, we have everything you need in one place to help support your business.
We understand that business life can be tough and often lonely, which is why we are here to help, long-term. We offer many services to help and support all business owners. We aim to see people thrive in all areas of their lives and grow a meaningful, successful business model in the meantime.
For more information on the services we offer or for any advice, contact us today at 07852 970 718. We are more than happy to help!
Mark is a multi-award winner in business networking and relationship building. He is passionate about coaching and mentoring business owners and professionals through 1-1 & group coaching, team performance workshops and group mastermind sessions.