- Starting and growing a business isn't easy, but here are some tips that may help...
There are five stages in business development. From the initial idea to the maturity of the brand, there are plenty of challenges along the way.
Below is a deep dive into the five stages and how you can increase your chances of success.
Stage One: Development
Whether you’ve always wanted your own business or you’ve stumbled upon a gap in the market, starting your own company is a mixture of exciting and nerve-wracking.
After all, there is a lot to do and a lot to consider.
In the development stage, you’ll create a clear plan of action and a roadmap to success. Without a plan, you can quickly lose your way and find yourself overwhelmed by the pressures of a growing business.
In your plan of action, you should create your business plan:
- What are your goals and when would you like to achieve them by?
- How do you become an effective and efficient business owner without knowing about the DevOps certification?
- Who is your business aimed at? (Create a detailed customer profile)
- Will you need funding until you find your feet?
A study that took the responses of 3,000 business owners found that those that take the time to create a detailed business plan are twice as likely to succeed.
But where does someone even start with creating a business plan?
Thankfully, there are a huge number of online resources, podcasts and magazines dedicated to all things business. Taking a business plan template and adding your own flair to it is the best first step to developing a successful business.
It’s worth remembering, however, that your business plan is bound to evolve over time. Goals will change, timelines may extend and new objectives will be added.
Startups that have a clear business plan are also much more attractive to investors. So, if your end goal is to sell up and live the high life in early retirement, a business plan may very well get you there. It could also help you bag some funding to keep you afloat till the profits come in.
Stage Two: Start Up
Now it’s time to put your plan into action.
This is the startup phase.
The stage is all about trial and error, and testing out that business plan. You’ll learn a lot about your own capabilities and experience some difficult make or break moments.
Even if you feel things aren’t working and you’re ready to give up, don’t.
Just because things aren’t going to plan, doesn’t mean you’re not onto a winning idea. It might just be time to take a step back, reassess and adapt.
Being flexible is a core skill needed for success. The ability to adapt at this early stage, will put you in good stead for a lucrative career. Your business will grow stronger and be a more resilient version of its former self; one that can help you achieve your vision.
Depending on your own capabilities and budget, the start-up stage may see you hire your first recruit.
Startup employees have a huge impact on the success of your business. They can also shape the culture, values and expectations of the company for employees in the future. That’s why finding the right start up team is so important.
You’re going to need people that can excel and share a diverse skillset. It’s a tough process – like finding the perfect lead singer for your band.
If you’re struggling to attract the right people for the job, or don’t quite have the time to make it all happen, outsourcing HR can really help.
Rather than paying for HR personnel full time, you can outsource the jobs you need doing – like payroll or recruitment. They’ll handle the jobs that you either can’t do yourself or simply need advice on. Outsourcing HR can be a really helpful and cost-effective option for your startup phase.
Also in the startup stage, it might be worth looking at funding options, too.
Stage Three: Growth
Once you’ve found your feet, you’re heading into the growth phase.
This stage is exciting as there are endless possibilities. However, it becomes a bit of a balancing act: you need to learn how to balance your cash flow and customer base without losing sight of your original vision.
At the beginning of the growth phase, it’s a good idea to take stock and reassess your business plan. This will help you better understand your current financial position, future opportunities and room for improvement.
When evaluating your success so far, think about these questions:
- What are you best at right now?
- What areas are driving the most profits?
- What does the competition currently look like?
- How healthy is the market?
Using these questions as the driving force for your new phase will help you find the right strategies for expansion and growth.
Stage Four: Expansion
Which leads us onto the expansion phase.
Like your initial startup phase, expansion is a time for trial and error, to see where your business can go in the future. This might be increasing the number of channels you sell on or investing in a new premises.
The goal here is to find ways to increase revenue and your market share.
While your focus will be on exciting new projects and expanding your business, it’s still important to evaluate your business’s limits. For this, you might want to consider merging, acquiring or collaborating with other companies.
Additionally, you might need a managed IT services provider to help manage your business’s infrastructure, scale up your operations, and protect against security risks. By working with a managed service provider, your business can benefit from having access to the latest technologies and tools needed to achieve your business goals.
Stage Five: Maturity
Through hard work, determination and perseverance, your business will reach the maturity stage.
From day one, you and your team have paved the way to success and established your brand.
In the maturity stage, potential growth is combined with retention: How do you keep your business ticking over?
It’s important to remember that the maturity stage is by no means the finishing line or a time to sit back and relax (although a break is always welcome).
Long term success still requires you to be adaptable, flexible and inspired. You need to be able to keep moving in the ever-changing market and avoid becoming stagnant.
The Houston Chronical, has a great list of ways your business can continue to mature. Another way is to take a look at your business plan again and see what can be done to grow, expand or change. If you’re hoping to sell your business, this could be the perfect opportunity to create an exit strategy.
There’s no knowing where your business may take you, but the key to all the success is a killer business plan.