Typical small business growth can be divided into common stages that businesses across most industries will go through. Watch and plan for these as your start-up takes off.

1. Starting Out

You are your business, with, at most a few closely supervised employees. You’re concerned with bringing in customers. Maybe you have one large contract and are looking to become a viable business and building a customer base. Many businesses only last as long as their startup funding, from their credit cards, friends and family or loans.

2. Surviving

You’ve gotten enough customers and orders to maintain the business and perhaps a few employees. You may be breaking even, but are wondering if you’ll turn a profit this year or next. You as the owner are still the driving force and there are few systems or processes in place at this point. If you get discouraged, decide to move on or retire, the business won’t continue. You may decide to sell and break even or sell at a loss.

3. Reaching Success

Satisfaction and pulling away: You begin turning a profit consistently, and, after a few years, you have company executives or department heads capable of maintaining basic business viability. The business should remain healthy as is, unless the your industry is in the midst of drastic change. You may decide to keep reinvesting and working to expand. Or you may decide to turn your attention away from the company, allowing managers to keep it going. You might use its profits to finance your lifestyle, life goals, or another business. You may decide to sell at a profit or undergo a merger with another business.

OR

Focused on growth and expansion: If disengagement is not on your radar, you’re still excited about the potential of the company. You may go for maximum growth. You prioritize expansion and seek additional funding to do so. You hire managers that are interested in and capable of spurring business growth, not just maintaining basic day-to-day business existence.

4. Expanding

With a strong team, good business planning/strategy, solid operational processes, and strong cash flow, you’ve achieved fast-paced growth. As time passes, you may sell at a profit or move from active President to CEO or an advisory role.

5. Arriving as an Established Business

Your company is a force in the industry. The challenge now is to stay agile like the early years, even though the business is now large and relatively complex.

Get the funding you need to master all stages of business growth. Contact JNI Lending today.