Growing a small business from the ground up is a journey. Everyone’s experience is different and there are a variety of paths to success and a range of obstacles you can encounter. That said; the road to prosperity can be mapped out in just five simple stages: Existence, Survival, Success, Take-Off, and Resource Maturity.
Table of Contents
Existence
Before you start an online business or a traditional one, you need to make sure that it is viable. Your idea is the foundation, and you need to make sure that you can build from there. The early days of entrepreneurship are often the toughest, and you need to ensure that your idea has what it takes to survive and thrive. At this point, you may only have one other person on board, so you need to be certain that you can take the pressure. The longer your business takes to get off the ground, the more money you will lose so you need to be confident in your idea and have the funding needed to weather the storm.
Survival
Once you have accumulated a consistent customer base, then you can move to the survival stage. During this stage, you really need to start thinking about your growth and how to maximize profits. Now is the best time to get some investment behind your company. A quick and easy way to get backing is to take out a small business loan from a bank. Some banks have pledged to helping small ventures grow, even when these companies have been locked out of other financing options.
These loans offer a range of sizes and will give you flexibility on repayments. In addition, some banks offer coaching and mentorship programs, along with networking opportunities, so you never have to feel alone. You can also be assured that these loans will continue to benefit other entrepreneurs in your position, as once you make the final repayment, that money will be used to re-invest in another small business.
Success
Now that you’ve established healthy and consistent profit margins, you can move into the success phase. This stage will be crucial in establishing what comes next for your company. At this point, you have an important choice to make, either maintain stable profitability or push for further growth. Keeping things as they are is the low-risk option, however, there is little opportunity for development here. Pushing forward to the next step can mean greater rewards, but you will be taking a gamble. At this stage, think carefully about your next move, as it can make or break your business.
Take-Off
If you do decide to go for it and you succeed, then congratulations. Now you are in the take-off stage so be prepared for rapid growth. However, you still need to be cautious. The more growth you experience, the more cash you will need for overheads. Touch base with your investors and accountant, as bankruptcy is always a risk if you are not careful.
Resource Maturity
The final stage is resource maturity. You will know that you have achieved this when your business has financial freedom, and you feel that you have successfully cornered your market. Things should be stabilized by now, but you shouldn’t remain stagnant. Don’t lose sight of your entrepreneurial spirit; keep innovating to guarantee success in the long-term.
