Posted by: Danielle Moore at February 01, 2023
No matter your size or industry, as your business evolves, you’ll go through five different growth stages.
Understanding what stage, you’re at can help plan for your future and ensure the right financial structures in place for your success. You’ll be prepared for any challenges you may face along the way.
Identifying your growth stage
Most successful businesses go through each growth stage during their lifetime and learning about each stage can help make informed business decisions.
Take a look at the five stages below and assess where your business is, to plan for the future.
Stage One – Existence
The existence stage is also known as the ‘start-up’ phase. At the beginning of your journey, you’re responsible for financing the business. At this point you start assessing the viability of your business. Steps involve –
One of the most significant issues business owners at this stage face is covering operating expenses. To progress to the next stage, businesses need to access further capital. Whilst ensuring your operational processes are scalable. So the demands of clients can be meet as your business grows.
Stage Two – Survival
The next stage is about survival. You know you’ve got a viable product or service and established a market. However, to grow, one must generate enough revenue to help cover expenses and reinvest back into the business.
Simply solely relying on revenue to achieve business growth takes time. It also doesn’t allow you to take advantage of growth opportunities that may come your way. For example, creating a new version of your product to attract a new audience or expanding into a new region.
Many businesses don’t make it past this stage because they can’t access the capital required to grow.
To survive and grow, you need to look at how you can consistently make a profit. Focusing on this can help you to fund your growth ambitions and move you into the next phase.
Stage Three – Success
At this stage, you’re thriving. The business is generating consistent profits, has maintained a reliable customer base, and the brand recognition is evident.
There’s a focus on keeping the company stable, managing cashflows, investing when needed and using profits to explore new projects.
However, at this stage, it’s also essential to consider your future goals. Do you want to pursue growth?
For example, expanding into new markets, developing new products or services or exploring new locations. Thinking about what’s important for your business can help move you into the next phase.
Stage Four – Take-Off
This stage sees businesses continuing to grow. You’re likely to be increasing profit margins and expanding your client base. But it can mean bigger challenges, with higher management costs and more complex business operations.
This stage focuses on how to continue growing and securing further capital to fund growth.
If you grow too fast, your working capital could be inadequate to support your cash flow requirements. So, it’s important to assess your cash flow and seek advice to determine the right financial structures available across the market.
Stage Five – Resource Maturity
It doesn’t end when you reach the final stage of business growth!
To remain competitive, there’s a critical need to stay focused and seek opportunities that will continue to help the success of your business continue. For example, strategically assessing your systems or processes to resolve inefficiencies.
When setting new goals, consider the longevity of your business. Assess if you have the staff, equipment and resources to continue to thrive.
Now can be an excellent time to update your business plan to take advantage of opportunities that maintain your business success.
How Rebus can help you create business growth
Understanding where you’re at in the growth stage can help you to assess your priorities and plan for the next step for your business.
At Rebus, we help our clients find tailored capital solutions that meet their short and long-term goals. We look for unique ways to improve our client’s finance structures, to help them achieve business growth and make the most of their opportunities.
Get in touch with us today for a no-obligation chat about how we can help you take the next step to grow your business.
The Trustee for the Rebus Capital Partners Unit Trust ABN 88 452 904 420. Authorised Credit Representative 523233 under Australian Credit Licence 536100.