Growing a small business is not a one-time thing. There are a series of stages involved before the business finally grows to maturity. It is important to learn how to go through all the stages of the business growth successfully. Take time and understand all the stages of business growth so that you can learn how to overcome the challenges experienced at each stage. Here are some of the stages of small business growth before full maturity is attained.
Stages of small business growth
Introducing the product or service
This is the initial stage of every business. At this time you have to introduce your product or a service to potential customers and clients. At this stage, you can only hope that your product or service will appeal to clients. This can be a difficult stage in business because it is hardly possible to make any profit. At thing stage, it is difficult to break even because the customers are few and it is a learning process for the business. Some of the businesses make losses at this stage before they finally stabilize.
The survival stage of the business is the determining stage of the business. At this stage, you have to determine whether the business is viable in the long run or not. At this stage, you need to analyze whether the business will be able to make profits and at the same time cover all the overheads and other expenses. If the business cannot make enough profits to cover the overheads, then it is time to terminate the business and start all over again or move to another business.
Business starts to thrive
Once you pass the survival stage, the business will now start to thrive, and this is also a good stage to watch out. At this stage, the business is making profits and sustaining itself without intervention or survival from outside. Many people tend to think that this is a safe stage for the business, but it is easy to go back to survival stage. This is the time to plow back profits back to the business and foster growth.
Most of the businesses that are in rapid growth are an international business because they have moved from the local outlook. In this stage, the business name and brand has grown. Most of the businesses in rapid growth are known and established experts in their niche because they have not only grown financially but also in their skill.