When it comes to starting and running a small business, there are five key stages that you will journey through. While each business is unique, success often depends on your ability to navigate each step carefully.
- Existence
The first stage is called “existence.” This is the time when you start your idea, and it’s just an idea.
There isn’t much pressure for success in this phase because there’s no risk that anyone will find out if you fail.
1. Survival
The second stage is called “survival.”
This is where the real work starts – you’re trying to build your company up enough to pay yourself a salary. In this phase, you’re trying to make ends meet so that your company can pay your bills and survive.
If your company could just stay at this level, it would be doing well. However, this is when many companies fail because they have the wrong idea or no ideas.
2. Success
The third stage is called “success.”
This is when your company gets off the ground and starts making enough money to support itself.
You’ll still need to work hard because competition is fierce, but you won’t have the pressures of survival on your back as much. In this phase, you’ll be able to start doing things that will make your company grow faster.
3. Take-Off
The fourth stage is called “take-off.” This is when your idea really works, and your company becomes successful. You’re able to expand, hire new people, and make lots of money. In this phase, you’ll want to keep building up your company so that it can get even bigger in the future.
4. Resource Maturity
The last stage is called “resource maturity.” This is when your small business has grown enough and stabilized enough not to need your constant attention. You start shifting your focus from making money to building a legacy.
This is a simplistic overview of these stages, but you’ll notice that each stage builds on the last. If you try to skip a stage, then your company will risk failure because you aren’t ready.