Business Growth Simplified
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As introduced in my previous posting, The Search for Growth Continues, I concluded that a 5 business growth stage model was best. It seems to be the most common approach and statistical research supported it too. The following 5 business growth stages form the basis of DE, Inc.
Last week I set the stage for understanding contributing factors to growth. Also, it’s important to understand what’s required in each of these factors changes as you move from one growth stage to another.
But if you don’t understand where you are currently, how do you know what you need to focus on to move your business to the next growth stage?
If you’ve been following along on our blog then you are already familiar with the small business growth cycle. You also understand that each phase has a specific goal on which you must focus.
This week we want to begin looking functionally at what you should do within the survival stage. Because revenue is one of the most critical measures of growth let’s start by looking at sales.
Last week I discussed how fear of taking action can be the killer of dreams. One reason business owners don’t take action is they don’t understand the cause and effect of their business actions.
The week before last I wrote about how you can manage using operational metrics rather than just your financials. Doing so gives you the foresight so you can change the course of bad decisions or market conditions to deter the negative impact to your financials.
Entrepreneur financial problems are one of the biggest challenges they face. Usually it’s because they don’t have enough financial resources to accomplish their business goal. This is because a business cannot exist without financial resources, but many businesses don’t have enough to accomplish their growth objectives.
There are several reasons for entrepreneur financial problems, but more often than not I find it arises from one or more of the following things 3.
I have advocated for years that growing a small business is a defined and repeatable process. The past few weeks I shared all the definitive research and available resource to support my premise.
My hope is you now have an appreciation for the fact that small business growth is easier than most people think. But, you still need to have a process by which you can begin to apply these principles to develop a meaningful growth strategy to build your action plan from which to execute.