Is Your Growing Business Vulnerable? The Challenges of Getting to and Beyond Second Stage

Is Your Growing Business Vulnerable? The Challenges of Getting to and Beyond Second Stage

Companies go through development and growth stages from the beginning to full maturity. At each point of the road there is a risk of failure, but the more your business is in the third step, the more stable and sustainable it will be. Still, most companies never go beyond the first stage. There are many reasons for this, but many times the main cause is simple. Business owners do not know what the steps are and they do not know how to change from one step to another.


During the start-up phase, a company is focusing almost 100 percent on survival. This is about developing a market, producing sales, collecting money and other resources and reaching the break-even point. A start-up company is more than just an idea, but it is not yet a stable company that will produce stable income for its owner.

The business owners focus during the startup is usually on sales and production in order to achieve its initial goals for revenue and profits. During this phase, the risk of failure is very high and many companies simply fail to reach the first step. Starting entrepreneurs can improve their chances of survival by working with a counselor or mentor very early in the process.

First stage

First Stage operations have grown a bit from the start. At this stage, the business usually produces regular revenue and is somewhat stable. Entrepreneurs at this stage must answer some critical questions to define whats next. First of all, I want to grow? It may seem like a no brainer, but its often the hardest question to answer truthfully. The reality of companies in the first stage is that growth will require the business to change significantly over time and it will require the owners role to change as well. Many entrepreneurs decide, either deliberately or by default, not to grow beyond this stage. These owners usually end up with a lifestyle company that gives them modest income as long as they work on it.

The first citys entrepreneurs also face the reality that you do not know what you do not know. To get to the first stage, these owners must be good service or product providers, but they often do not have training in or knowledge of many of the most important parts of the business that may affect their long-term success. For these owners, a program for developing their business knowledge base and enhancing their personal reputation is extremely valuable. Finding the right programs and attending regularly can be the central foundation for positioning these companies for growth to the second stage.

Second phase

Second Stage companies are those who have grown through the first stage but are not yet fully mature. They tend to enter this stage as they approach 1 million dollars in annual sales and continue at this stage by 50-100 million in sales. Early second stage companies usually have more employees and possibly one or more managers, but they do not have all systems in place to develop to their full potential. The leaders of these companies have already shown their ability to create vision and implement a business model. In the second phase, they are ready to develop or improve their leadership and team development skills and create systems to ensure a sustainable business model for the future.

As in the first stage, they often experience in the second phase that they do not have all the knowledge base and skills required to achieve their goals. Here is also a program that focuses on developing business responsibility and increasing the owners knowledge base often the key to success. Peer learning can play a major role, but there is also room for targeted learning based on a solid growth and business system. However, learning has developed, it will be most successful if it provides a broad knowledge base that gives the owner the tools to ensure that all aspects of the business are performing at peak performance.

Third stage

In the third stage, a company has reached full maturity. These companies are characterized by strong leadership at both management and management levels. They usually have stable growth supported by strong operational and administrative systems. Their owners have a solid understanding of what the business needs to continue to succeed and they have the tools and resources available to them to get these things happen.

Success at some stage

The reason for each business owner is that you want a business that meets your financial goals, giving you a certain level of personal satisfaction, giving you the opportunity to balance your life and provide some form of security for the future. All this is possible for owners at any of the three stages of the business. What you need to decide is where you want the business to land.

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