Small Business Growing Pains
All businesses experience growing pains, but the focus of this blog is on small businesses. Small businesses usually lack the resources of larger businesses. Not just financially but also with systems and processes.
Growing pains for small businesses can be especially painful for several reasons and often come down to lack of preparation and communication.
Let’s start by identifying the five stages of growth.
- Idea/start-up/existence: This is the first stage of a small business. In this stage, the business is just getting started. The owner is still working on the business plan, developing the product or service, and finding customers.
- Survival: This is the second stage of a small business. In this stage, the business is still trying to make a profit. The owner is still working on developing the business model and finding ways to cut costs.
- Success: This is the third stage of a small business. In this stage, the business is profitable and growing. The owner is focused on maintaining the business and growing it even further.
- Take-off: This is the fourth stage of a small business. In this stage, the business is growing rapidly. The owner is focused on expanding the business and reaching new markets.
- Maturity: This is the fifth and final stage of a small business. In this stage, the business has reached its full potential. The owner is focused on maintaining the business and keeping it profitable.
It's important to note that not all small businesses will go through all five stages. Some businesses will fail before they reach the survival stage. Others will reach the success stage and then plateau. And still others will reach the take-off stage and then experience a decline.
Understanding the different stages of growth allows you to prepare for the challenges and opportunities that each stage presents. This can increase your chances of success.
Here are some additional tips to help prepare and get through each stage of growth:
Idea/start-up/existence:
- Do your research and create a business plan.
- Find a mentor or advisor who can help you get started.
- Network with other entrepreneurs and business owners.
- Be patient and persistent.
Survival:
- Focus on profitability.
- Cut costs where possible.
- Develop a marketing plan.
- Build a strong team.
Success:
- Maintain the business and keep it profitable.
- Expand the business and reach new markets.
- Innovate and stay ahead of the competition.
Take-off:
- Focus on growth and expansion.
- Hire new employees.
- Invest in new equipment and technology.
- Market the business to new customers.
Maturity:
- Maintain the business and keep it profitable.
- Invest in research and development.
- Stay ahead of the competition.
- Prepare for succession.
As a small business owner, you know that growing pains are a fact of life.
Here are a few tips to help you through your growth phases:
- Plan ahead. The more prepared you are for growth, the less painful it will be. Make sure you have a solid business plan in place and that you're financially prepared for expansion.
- Delegate. As your business grows, you'll need to start delegating tasks to others. This can be difficult, but it's essential if you want to avoid burnout.
- Communicate effectively. As your business grows, it's important to communicate effectively with your team, customers, and suppliers. Make sure everyone is on the same page and that you're keeping everyone informed of changes.
- Be flexible. Things will inevitably change as your business grows. Be prepared to adapt and change your plans as needed.
- Invest in your development and leadership skills. There are many ways to do this. You can hire a coach, attend leadership training programs, or read leadership books and articles. Never stop learning!
Yes, growing pains are a normal part of business, but by following these tips, you can minimize your pain and maximize your growth.
Bill McDevitt, founder at Top of the World Coaching LLC.
If you're struggling with growing pains, Top of the World Coaching can help. We offer a variety of services to help small businesses grow and succeed. Contact us today to learn more.
Schedule a discovery call at https://calendly.com/totwcoaching/discovery-call or email Bill McDevitt at bmcdevitt@totwcoaching.com. I would love to hear more about you and your business and build a plan to help you achieve your goals.