Each small business has unique characteristics. But the path to business growth is similar across sectors. We’ve outlined five key stages of business development and challenges that can occur at each stage. Knowing what to expect helps you anticipate problems, develop plans to address issues, and meet your business growth objectives.

Launch

The challenges during this phase are securing new customers and having sufficient cash to cover launch costs. As the owner, you will be doing most of the work with few employees supporting you. Understanding your point-of-difference and the solution you provide will help you assess market potential and target customers.

Ramp-Up

With a small customer base established, the ‘ramp-up’ stage changes your focus to generating cash flow to meet current obligations. This stage also challenges you to start earning profits.

Early Success

During this stage, your company is earning average or above-average profits. Cash flow is healthy and steady. You have a customer base large enough to sustain hiring people to manage marketing, operations, and finance. Your key decision is whether to focus on business growth or maintain the current business as a source of income.A business growth strategy requires you to take existing cash and borrow if needed to finance expansion.

A maintenance strategy is possible with defendable product niche and a good management team. This strategy may be required with a limited customer base or a small geographic market.

Long-Term Growth

If you pursue long-term business growth, you’ll need to have organizational and financial structures in place to meet your goals. You’ll need to delegate responsibilities to a decentralized or divisional leadership team to foster growth. Infusions of capital (cash), sometimes by taking on debt, will be needed to finance expansion.

Maturity

In this stage, your entrepreneurial and strategic planning abilities are needed to maintain your market share. Staying abreast of new developments, changing needs, and then adapting your offerings accordingly will provide business growth opportunities.

Talk with the JNI Commercial Lending team about financing to support your business growth plans.