Growing your business
Business growth is a choice made by business owners and it can often be a tough one. We define high growth for a startup as the ability to hit a £1m turnover within three years of launch. For an existing business it is the ability to grow revenue by 20% per annum. Our objective is to support people in achieving these goals.
To give you an idea of the journey you are embarking on, or have embarked on, the stages your business will go through are usually as follows:
First Steps in Building a Business
Stage 1: Start-up - where the main problems are obtaining customers and delivering the product or service contracted for. Key challenge is getting customer numbers 2, 3 and 4.
Stage 2: Survival - the business has demonstrated that it is workable and now the focus shifts to the relationship between revenues and expenses (i.e. the ability to make a profit). Many small businesses never really progress beyond this stage.
Stage 3: Success – this is the crunch time. The owners have to decide between expanding the company or keeping it stable and profitable (sometimes called a lifestyle business). Those who go for growth need to make sure the basic business remains profitable while developing managers, systems and strategies to meet the future needs of the organisation. This is hard!
Stage 4: Take-Off - where the owners need to be able to truly delegate (i.e. with controls on performance and the willingness to see mistakes made) and to find sufficient cash to fund the growth of the business.
Stage 5: Maturity - where the business is decentralised, adequately staffed and has the systems in place to allow the business and its owners to be quite separate.
How fast you progress through these stages will be heavily influenced by you!