The Four Stages of Business Growth
Brian Weaver
American Public University
Businesses go through many different stages throughout their lifetime. Most importantly, businesses experience four stages of growth during their entire runs. Within the first stage of growth, “typically a business will have one owner who does everything from sales and bookkeeping to marketing and production” (McCubbrey, 2009). This is the very beginning when things are just getting started. In the second stage the business owner becomes an employee who also oversees everything with added employees. They take on new tasks like hiring and scheduling. During the third stage of business growth, the business will reach a high peak where the owner will have a team of managers that work directly under him or her, dealing with most of the day to day operations. In the fourth stage the company will “add more layers of management and processes, it also adopts written policies, budgets, and standardized personnel practices that are fitting to the corporate structure” (McCubbrey, 2009). All of these stages are the standard experience for most successful businesses that are operated nowadays. The first stage is when the business owner is handling almost everything, and taking on more responsibilities …show more content…
It also adopts written policies, budgets, and personnel practices along with the formal corporate structure” (McCubbrey, 2009). This stage is often referred to as the stage of Maturity. FusePhase.com again notes that “when someone is operating a mature business, they’re likely to face roadblocks related to having more employees, more costs, and a lot less flexibility than there was in the first stage” (fusephase.com). Some challenges faces during this period of growth are the loss of momentum, decreased sales, less agility, and trouble keeping employees motivated to do outstanding
Brian Weaver
American Public University
Businesses go through many different stages throughout their lifetime. Most importantly, businesses experience four stages of growth during their entire runs. Within the first stage of growth, “typically a business will have one owner who does everything from sales and bookkeeping to marketing and production” (McCubbrey, 2009). This is the very beginning when things are just getting started. In the second stage the business owner becomes an employee who also oversees everything with added employees. They take on new tasks like hiring and scheduling. During the third stage of business growth, the business will reach a high peak where the owner will have a team of managers that work directly under him or her, dealing with most of the day to day operations. In the fourth stage the company will “add more layers of management and processes, it also adopts written policies, budgets, and standardized personnel practices that are fitting to the corporate structure” (McCubbrey, 2009). All of these stages are the standard experience for most successful businesses that are operated nowadays. The first stage is when the business owner is handling almost everything, and taking on more responsibilities …show more content…
It also adopts written policies, budgets, and personnel practices along with the formal corporate structure” (McCubbrey, 2009). This stage is often referred to as the stage of Maturity. FusePhase.com again notes that “when someone is operating a mature business, they’re likely to face roadblocks related to having more employees, more costs, and a lot less flexibility than there was in the first stage” (fusephase.com). Some challenges faces during this period of growth are the loss of momentum, decreased sales, less agility, and trouble keeping employees motivated to do outstanding