For a business to grow it has to undergo the various stages of growth. Depending on the business stage that you are in you would face different challenges. If you understand the stages of business growth you would be able to succeed as a business. To be able to avoid the challenges of business growth you would have to understand the stages of business growth. Moreover, buying YouTube likes could be essential for your business.
It doesn’t matter what kind of business you are running as long as you have no clue you would be unable to overcome the challenges. As an entrepreneur, you desire to see your business grow. Some businesses may be unable to complete the stages of business growth but this is not used to measure business growth. To determine whether a business has grown you would check on the following;
- The number of employees in the business
- The product development
- The technology of production used
- The rate of expanding in different locations.
The stages are five in number and are explained below with their challenges.
1. The Idea Stage of Growth
Also known as the existence or the conception stage. This is the first stage of growth where the business has not yet started but an entrepreneur has a business idea on which business to start. Here the business owner is advised to seek opinions and advice so as to determine if the idea is viable. At this stage research and feedback are required. Due to fear, most businesses fail at this stage.
Here the challenges are minimal. Since the business has not yet started, the challenges do not affect it directly. The challenges would enable you be able to grow your business hence must be addressed and handled with care.
At this stage, the owner should compare his skills, passion, and also experience to the available business opportunities and see which ownership structure would fit best. Then you test the elasticity of the business idea and see if it allows room for expansion. After that seek advice from an experienced guru then develop a plan for your business. Ensure that before you start your business you should have enough money to start, run and manage the business.
2. The Starting Stage
Here the business idea has already been implemented and seen that it is profitable and should be used then it is time to start the business. The business is already registered, suppliers have been searched and are in order, and not forgetting the products are ready for sale. The operations for running the business have already started.
At this stage, the business undergoes several challenges. The capital may be minimal hence difficult to pursue the growth of the business. Accessing the market may be difficult for some businesses hence leading to some losses
The business owner should ensure that they hire skilled staff so as to improve the quality of products. As the owner, you should involve yourself with the market be a part of it so as to expand the market for your products. The problem of capital should be handled with care. Use the different sources of financing your business so as to be financially equipped.
3. The Growth Stage of a Business
To reach this stage you have to pass the above stages. If your business survives to this stage it means that it would grow even if it is through struggling and it has a high chance of surviving. Here the market is already established, it has customers and has products to sell. Same to other stages this stage also has its own challenges that you need to overcome to be able to pass it.
Since many businesses have already succumbed to the above stages here the competition is high. Every business has a motive for growing its business. There may be also misunderstanding among the staffs which may lead to lack of communication hence poor products are produced
The staff may be advised to work as a team and ignore their differences this would help increase the quality of the products hence increase of customers. The issue of competition may be handled by changing the strategy of operation which may help you be unique from others hence defeating your competitors.
4. The Establishment Stage of a Business
Here the business is already stable hence the rate of innovation is very low. Challenges here may cause the end of the business.
At this stage, businesses forget that technology changes with time hence they remain stagnant. This may lead to the business getting closed completely if not taken care of immediately.
As the owner, you should ensure that you change with time. If the technology develops develop with it. Also, ensure that there is room for expansion for your business.
5. The Maturity Stage
After the business has expanded it means that it has already reached its maturity stage. Here the business has already grown and has acquired the market for its operations. It’s up to the business owner to decide whether to expand it or to remain stagnant at this stage.
Though it has reached its maturity the business faces competition such as being unable to control negative cash flow
Owners should keep a record of their money of how it flows. They can also reduce some costs this would help sustain the cash flow to positivity.
Ensure that you have understood all the stages and their challenges also know the methods of prevention. This would really help you to grow your business.