For some, you may know your industry and its cycles and you may know what it took to get you to where you are, but did you know that there is still more to achieve? For others, you may be catching yourself saying "There has got to be more to owning a business than this." I have good news for you-there is!

Over the years I have done extensive research into how businesses form and the various challenges they face along the way as they grow. In partnership with two colleagues in Ireland, John Heenan and Mort Murphy, we discovered that there are 9 predictable stages that a business owner will go through as they experience growth in their business.

"Defining the stages of business is not new. However many of the descriptions have traditionally been presented from the larger corporate point of view, which does not reflect the reality faced by small businesses. The 9 stages of business focus on the impact the life of the business has on the life of the owners/managers. There are additional stages in the small business lifecycle because of this." - as Murphy and Heenan would say. Below are the 9 stages and the key challenges you may face.

1. Concept-This is definitely the most enjoyable stage. There is great fun and great enthusiasm. This is all about creating vision.

Key Challenges:

• Knowing where to start
• Having the courage to do it
• Communicating the vision effectively and putting it on paper

2. Start-up- Trying to turn the vision into reality

Key Challenges:

• Sourcing funds
• You are now no longer a technician you are a business owner
• Fixing to get ready syndrome- You want everything to be perfect before you start to bring in business

3. Survival- Outside funds have dried up. The business must quickly start generating cash by bringing in paying clients. Quiet desperation sets in-"I never knew it was going to be this tough."
 

• lack of cash flow
• Lack of confidence
• lack of strategies to bring in business other than hoping, praying and begging
• Lack of skills needed to close more deals  

4. False Stability-The business is generating enough cash to survive. The owner is paying the bills. Everything in the business depends on the owner. However, s/he is so relieved to have survived that s/he breathes a deep sigh of relief.

Key Challenges:

• Capacity -Figuring out how to Get the Work Done but not at the cost of Bringing in Business
• Needing to hire another person to take the business to the next level and having the revenues to pay them
• Everything is about the owner, if s/he stops the business stops

5. Growth- Gaining Momentum- Business is thriving and sales are increasing. The owner is a "hands-on" manager. S/he is drawing an income; however s/he has not time to enjoy life. Owner realizes they need to put systems and processes in place to stabilize the business.

Key Challenges:

• Delegating
• Hiring the right people
• Lack of systems and processes to create consistency 

6. Expansion-Growth beyond Capacity- Both sales and the business expand. The owner operates on a basis of management by "walking around." Owner has a great standard of living. But if s/he is a way for a week, the whole place is in turmoil. The owner is exasperated because of the conflict of having to be in the business and not having the time to enjoy the lifestyle created. Quite desperation undermines the owner's confidence, and they feel s/he can't get out from under it.

Key Challenges:

• Getting their management team in place
• Getting their employees to perform
• Removing themselves from the day to day activities 

7. Entrepreneurial Euphoria- You are on a high, systems are in place, the next successors are being picked. The major responsibilities are making sure the processes and procedures are being followed.
 

Key Challenges:

• Managing and Measuring Managers
• Making sure the management team is following the "plan"
• They still think about the business when they take time off 

8. Maturity-Enjoying the fruits of your labor- Owner have full-time management in place. Life is now rosy. They can enjoy the fruits of their labor. They can finally give themselves permission to do what they love to do in the business or take time off if s/he wants. Owner can now do what s/he wants with the business: sell, franchise, relax or retire-not worry about the day to day running of the business. His/her only responsibility is to provide vision to the business.

Key Challenges:

• Continuing to keep a presence in the company to provide the vision and provide leadership for future improvements to the company
• Letting go to let the managers run the business

9. Succession- Owner has successfully passed on the business to the next set of owners and is completely free of the business and has the wealth to enjoy the lifestyle s/he wants

Key Challenges:

• Identity Crisis - The business is all the owner knows in most cases
• Deciding what to do beyond the business

 My question to you is what stage are you in and what stage would you like to be in?

 Sincerely,

Jim Roman
President, Business Owners Institute, LLC.

To learn more about Getting Through the STAGES of Business GROWTH