The way you grow your business is unique. Even if you take the same basic approach as another company, your path forward will vary. However, there are four primary stages of business growth that almost every organization will experience.
Here are the four stages, along with information on what to expect during each one.
Every year, hundreds of thousands of businesses are launched. And every year, thousands upon thousands of them close their doors. Your goal is to implement a plan that allows you to survive and thrive during the startup stage.
During this stage, focus your resources on:
As you successfully get your company off the ground, begin to turn your attention to the growth stage. Take things slowly, but create a transition plan that will allow growth to happen as smoothly as possible.
Launching a business is a rewarding experience, but there’s nothing better than watching it grow. It’s at this point that you realize you’re on the right track. Your business and marketing plans are driving results, you’ve established your company in its industry, and consumers are interested in your product and/or service.
Other signs that you’re in the business growth stage include:
While growth is a good thing, don’t get ahead of yourself. Managing growth is every bit as important, as growing too fast can cause more harm than good.
Here are some steps you can take to more efficiently manage your company during the growth stage:
The maturity stage is unique in the way that it makes you feel about your company. When you reach this stage, you may feel like “you’ve made it.” You’re no longer in the risky startup stage or busy growth stage.
But that doesn’t mean you can put your business on autopilot. If you stay stagnant for too long, you’re taking a big risk. You could soon find your competitors stealing away market share.
Do these things during the maturity stage of your business:
The biggest takeaway about the maturity stage is that you shouldn’t sit back and remain satisfied. Remain active in pushing your business forward while also thinking about and preparing for the future.
At this stage, you either reinvest in your business to renew it or watch it become stagnant or even decline. You can’t expect your business to run itself, year after year, without reinvesting to maintain its position in the market.
These types of scenarios increase the risk of becoming stagnant or facing a decline:
But what does decline look like? How do you know when your company is no longer pushing forward? This can include several quarters (or years) of declining revenue, loss of market share, and high employee and/or customer turnover. By keeping a close eye on your business, you can pinpoint any of these potential problems before they take a toll. The sooner you do this the sooner you can implement a fix.
Reinvesting in your business is the best way to prevent decline. This can take on many forms, such as:
If you’re uninterested in reinvesting in your business, it may be time to consider selling it.
No matter what stage of business growth you’re in, there’s one thing that always holds true: cashflow is critical to your success. And that’s where REV Capital comes into play.
With our invoice factoring service, gone are the days of waiting for unpaid invoices to reach your account. We make it simple and affordable to gain access to the funds you’re owed.
A lack of cashflow has the potential to bog down your business. And if this becomes a serious problem it could result in layoffs, manufacturing delays, and even closing your doors for good.
You’re in the right place if you’re ready to get started with invoice factoring. Apply on our website today and one of our experienced factoring professionals will contact you to discuss your company’s specific wants and needs.