6 Stages of Business Growth ? Overview - Catalist Consulting

January 16, 2013 Dan Lacy

?

In most respects a successful business is measured by growth. I have been in numerous meetings when the owner asks how much their top line has grown over the previous period, the larger the percentage the bigger the smile.? So we are dialed in that growth is good and it is; but revenue growth is difficult.? As the business grows through different stages, the business gets more complex: larger location, more people, stronger managers, processes, KPI?s and the role of the owner changes dramatically.

Based on the latest census (http://www.census.gov/econ/smallbus.html), 62% of US businesses with employees get to $500k in annual revenue but after that revenue growth is more difficult to achieve as this table explains:

• Total number of businesses with employees in the U.S.? 6 million
• Number of business under $1M in revenue ? 4.6 million or 76% of them
• Number of businesses between $1M ? $2.5M ? 758,000 or 12.5%
• Number of businesses between $2.5M ? $5M ? 311,000 or 5.1%
• Number of businesses between $5M ? $10M ? 174,000 or 2.8%
• Number of businesses between $10M ? $100M ? 176,000 or 2.9%
• Number of businesses over $100M ? 20,600 or .3%

Only 24% of all businesses in the US break through the $1,000,000 barrier, 6% break through to $5M in revenue and even less at 3.2% make it past $10M in revenue.?? As this overview of US business illustrates, growing a business is complex and challenging.? But there is a huge pot of GOLD at the end of the growth rainbow ? a business owner who can grow to $10M or more in revenue can exit their business and cash out for millions.? It is a worthwhile road to travel, no matter how many land mines, pot holes and obstacles that are in the way, there really is millions waiting for those that can make the journey.

We have identified these six stages in a businesses growth:

• Stage 1 ? One Person Show (1-10 employees)
• Stage 2 ? Ramp Up (11-20 employees)
• Stage 3 ? Delegation (21-30 employees)
• Stage 4 ? People Crunch (31 ? 50 employees)
• Stage 5 ? Professional (51 ? 100 employees)
• Stage 6 ? Visionary (101 + employees)

We will discuss each stage in detail, how to identify the stage, what the key challenges are, what to attack, what to look forward to and give you an overall better understanding of how to effectively grow your business in the stage you?re in and how to prepare for the next stage.

Next week we will cover stage 1, companies with between 1 and 10 employees where the owner has total control.

Have a great week

?

Dan Lacy

The Prophet of Profit

P.S. We will have a public seminar January 17 and 24 to discuss our new growth program.? It is free and each participant will receive one of my latest books; Cracking the Financial Code or Solving the People Puzzle.? Click on this link for more information and to reserve a seat.

P.P.S. On February 27 noon to 2:00 pm we are starting our Profit Made Simple seminar.? This is the 5^th year for this series. I will buy you lunch for 9 Wednesdays and at the end of that period, you will be able to grow your profit 20% in the next 12 months or the series is free.? More information profitmadesimple.eventbrite.com

Follow me on Twitter!? @danlacy

Like us on Facebook!? Dynasty Business Consulting

You can read this Newsletter and more at www.DanLacy.com

If you need to update your information, you can do so by clicking here

16
Jan

posted in: Business Coaching, Business Planning, Business Tools, Dan Lacy, Funding, Government, Hiring, Leadership Training, Marketing, Strategy, Systems, Training by admin | tags :business coach, Business Coaching, coaching, Kim Stoneking, leadership, life coaching, organizational alignment

Source: http://www.catalistconsulting.com/2013/01/6-stages-of-business-growth-overview/

miss america 2012 hgtv dream home patriots vs broncos contraband denver vs new england denver broncos vs new england patriots cruise ship sinking