In order to achieve success in any small business you must pass through several stages along the way. You cannot skip a step. Frequently business get stuck for just that reason. The entrepreneur isn’t aware of these stages therefore he/she is focused on the wrong objectives for their stage of growth. Focus on the right things and success becomes much easier!
In a previous post title, The Search for Growth Continues I introduced the 5 stages of small business growth from Churchill and Lewis’s research. Churchill and Lewis also identified a significant fact that both owner and company factor are critical to a business’ growth.
4 factors in each category that impact a small business’ growth:
- Owner Goals
- Operational Abilities
- Managerial Abilities
- Strategic Abilities
Company Growth Factors:
- Financial Resources
- Personnel Resources
- System Resources
- Business Resources
The first step is getting from the Existence stage to the Survival stage. Here are the requirements on which you must focus under each of the previous categories if you wish to successfully achieve the “survival” stage of growth in your business:
Capital sources include:
While there are other objectives which entrepreneurs to focus, these factors are non-negotiable. If you don’t achieving these key factors your business will stagnate and can get stuck here for years and sometime even decades.
Do you recognize anything in this list that you may have forgotten? If you corrected it how long do you think it would take to achieve the stability of the survival stage? For those of you that have gotten past this point in your business, was there something that held you up for a time? What was it and how did you get past it?
In the coming weeks see more posts in this series as we detail more of what is required to get past your current stage of growth and achieve the higher more profitable stages of your small business growth. If you cannot wait, I suggest you download copy of the DE, Inc. Small Business Growth Matrix from our website. You’ll find all 5 stage defined within this document.