Evaluating Your Company’s Business Growth
Small businesses all tend to go through distinct phases of development from beginning to end, and even though some of these phases may be of only short duration or may be bypassed altogether, virtually all businesses will pass through these same developmental stages.
Existence involves acquiring customers that will eventually fuel the growth of the business, and delivering products needed or desired by those customers. This of course, is a critical stage because it requires that enough customers be obtained in order to justify the existence of the business. It also requires that a startup business have enough cash on hand to make it past the initial phase.
By the time a business reaches this stage, it has shown enough potential that it can survive as a legitimate business entity. A customer base has been established and the delivery of products to those customers has proven to be profitable. Having reached this stage, the next big issue is whether business growth can be achieved, so as to stay in business.
Having reached at least a moderate level of success, a new company is confronted with the question of whether to consolidate on that success or to risk expansion, so as to increase the level of success. At this point, it is entirely possible that the original owners might choose to exit the company and realize at least a moderate level of profit.
At the take-off stage, company management has made the decision to attempt significant growth, and is confronted with the need to raise capital for that growth. Hallmarks of this developmental phase are managerial delegation to other qualified employees, and the raising of funding needed to achieve significant growth.
Having reached the mature phase of development, it is generally necessary for a company to consolidate all gains it has made, so as to realize maximum benefit from being a small company with relatively large success. At this stage, efficiencies are sought, so the company can be even more effective in its niche, and it now has the luxury of strategic planning for the long-term future.
Growing your business with Himsl Consulting
Business growth is something that all enterprises strive for, because any company which isn’t growing is probably stagnating and losing ground to competitors. If your business requires funding to fuel your own business growth, contact us at Himsl Consulting, to learn about how we may be able to assist you in growing your business.