Every great thing starts small, and every business goes through different stages, whether big or small. However, the challenges small businesses face are different from those big corporations face. Researching the various locations of small businesses also requires hard work, as these enterprises have varying sizes and growth capacities.
That is not to say that studying their growth rates and structure is impossible or unimportant. Harvard Business Review discusses the stages that small business owners can go through.
Why It Is Important To Familiarize Yourself With the Stages Of Small Businesses
Business owners who know what stage they are in can easily address their current issues, whether managerial, logistical, or related to equipment and facilities. Awareness of the stages can bring a sense of ease, as you know what to expect and can confidently take the necessary steps.
Understanding the stages of small businesses can also serve as a template for others in the business world. Anyone can look back and relate to the problems or solutions.
The Different Stages Of Small Business
Small Business Stage 1: Staying Alive
Research shows that this is the initial and most crucial stage. Here, the business strives to establish its presence. Startups and small businesses are new to the demand-supply chain and often struggle to gain customers. Solidifying their position can be a challenge.
Stage 2: Trying to Survive
Once a business reaches this stage, there is a seamless synergy between supply and demand. The business has grown, but the owner still makes critical decisions. Generating sufficient revenue while progressing forward is a concern.
Stage 3: Becoming Successful
Here, the small business is leveling up. The owner can choose to continue growing or maintain their current level of success. This stage can be divided into disengagement or growth.
Stage 4: The Take Off
Now, the business can expand its reach on a broader platform. It has a customer base and financial strength.
Stage 5: Handling Resource Maturity
This indicates that the small business is mature, with adequate resources, including staff, knowledge, finances, and market presence.
Once a small business reaches this final level, nothing can stop it from soaring. However, as a business owner, it is crucial to never lose sight of the goal, even if distractions arise.
