Table of Contents
Every business is different, and so is the rate at which it grows; however, weโre here to outline the five main stages of business growth and to look at where your priorities should lie throughout the journey of your business. These stages of business growth were introduced by Neil C. Churchill and Virginia L. Lewis in 1983 and have stood the test of time, even though industries and businesses have evolved exponentially in that time.
Existence
Firstly, we have existence, which is when a business is initially serving customers and making
revenue. At this point, you start to see whether your business has some validity and viability,
you start to find where you fit in the current market, and you adjust your business model based
on the reality of running a business, as opposed to the planning stages. Usually, you will be
working alone or with a very small team and usually wonโt have investors, so getting relevant life
insurance is important.
Itโs key at this stage that you are regularly conducting market research, collecting feedback from
customers and doing competitor analysis, to find areas for improvement both within your
business and when comparing to others. You also need to make sure youโve fully registered the
business and look at any trademarking, obtain the permits you need, open business bank
accounts, start to look at securing funding, create your marketing plan and get the right
insurance.
Survival
The next stage is survival, where the business is now more established and a clear process is in
place with established customers. The structure of the business will be quite clear at this point,
the owner still has primary control and the team will be growing. Shorter-term strategies usually
take hold and longer-term goals arenโt necessarily mapped out. The main goal here is to focus
on making money, to either break even or generate enough to cover expenses. This is about
monitoring your cash flow carefully, controlling expenses and then looking at ways to start
pushing the business towards the next stage.
Success
The success stage is when the business starts making a profit. The business is beginning to
mature, is getting more stable and is consistently generating revenue. The brand will have
started to become well-known in the sector and has quite a solid returning customer base. The
company will begin to grow as demand grows, with more staff and perhaps a larger
management team. Maintaining an understanding of the economics of your country and market
is also essential. You may also start to invest more in different software to assist with the
running of your business, from CRM systems to project management tools.
Much clearer production processes, marketing strategies and accounts are now in place,
allowing the owner to take a step back from some of the smaller details, put trust in the team.
Something key here is to ensure that precautions are taken to properly manage cash flow with
the growth, as even though things may have gone smoothly so far, things can change in a
heartbeat.
Takeoff
After success comes takeoff, this refers to a rapid growth stage, usually involving acquiring
competitors, moving into new territories, expanding into new product markets, growing the team
significantly and looking at large rounds of funding. The key to this growth is ensuring the right
financing procedures are in place, whether itโs loans, venture capital or crowdfunding. Taking
the correct due diligence through this stage and growing carefully is essential to ensuring the
hard work that has been built isnโt compromised. Something else that is key at this stage is
maintaining quality whilst you grow as a business, again, so as not to disrupt what you have
already built.
Resource Maturity
Last but not least, we have resource maturity. This is about managing what you have grown in
the previous stage, with thorough reviews of the systems and procedures to ensure that the
growth is sustainable. Establishing clear and long-term strategies to ensure the longevity of the
business should be at the centre of the focus, ensuring that every element of the business is
fine-tuned and proceeding seamlessly. Ongoing investment in research and development is
important to remain innovative. You also need to be very committed to your sustainability and
corporate social responsibility, with a focus on your brand image.
Final Thoughts
Businesses change and evolve with time, and the ideas introduced by Churchill and Lewis in
1983 still stand true today. Each stage is about cleaning up your practices based on where you
are at and looking forward to how youโre slowly going to work towards the next stage. Quick
wins and overnight wealth wonโt be sustainable in most cases, so focus on slow, steady and
sustainable growth.
