Insights On The Five Stages Of Small Business Growth

It can be hard to start a small business even during the best times. It was a desperate attempt to survive during the Covid-19 epidemic. A third of small businesses were closed during the lockdowns. However, many have reopened and launched new companies as consumer demand rises.

Each of America’s 31.7 million small businesses has its own story, challenges, and pathway to success. Some companies are limited to a single founder. Others could grow and become the next giant. Many founders will encounter common challenges along the way as they strive to reach higher levels of success.

So, we have decided to show you real-life examples which illustrate the five stages that small businesses go through survival, success survival, takeoff, resource maturity, success, takeoff, and launch.

We did not invent this model. Instead, it was developed in 1983 by Neil C. Churchill (researcher) and Virginia L. Lewis (researcher). We aim to bring each stage to life and spark discussion around the challenges and experiences business leaders face.

We’ll be sharing insights from our contributors each day about the various stages of growth. Today we begin at the beginning. We will start from the beginning, focusing on the launch of a business and the process of acquiring customers.

Stage 1: Existence

1.Commercialization and validation of research ideas

2.Product-market fit

3.Being agile

Stage 2: Survival

1.Customer service and loyalty-building

2.Profitability and Growth

Stage 3: Success

1.The founder’s dilemma

2.Encourage word of mouth

3.Funding for expansion

Stage 4: Takeoff

1.Scaling operations

2.Growing and Hiring

3.Resilience, business continuity, and contingency planning

Stage 5: Resource Maturity

1.Scaling up while maintaining customer service

2.Lean marketing strategies for businesses

3.Finance and unicorn entrepreneurs

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Samatha Vale
Samatha a senior writer for HC's entertainment team. She is an entreprenuer, mother and an excellent writer. She's also an avid reader, music enthusiast and all around inquisitive person - which is just a nice way of saying she's nosy.

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