Every new small business goes through five phases of business growth. Some companies move through them quickly, while others could languish for a lengthy period in one or more stages. Knowing what to expect helps you plan how your company can navigate all phases successfully.

1. Start-up

This phase is the foundation of your new company. First, your business idea must be validated by market research and creating a solid business plan. Next, you want to start small and launch with the right products and services for your market. Finally, keep enough cash and manage it properly to be successful.

2. Survival

After the launch, you focus on finding ways for your new company to turn a profit to maintain cash flow and have extra money to fuel growth. Offering exceptional service or products to your clients builds customer loyalty and grows your client base. If needed, educate yourself on proven business methodologies for management, marketing, and sales.

3. Success

Once your company has consistent profits, brand recognition, and a strong industry presence, you have moved to the success phase. At this point, you can add more employees and additional managers to allow you to focus on business growth instead of supervising the day-to-day operations. Your goal here is to keep the business profitable and stable with enough cash to weather any economic or industry issues.

4. Take-off

This phase allows your company to benefit from your successful operating, marketing, and sales strategies and turn the focus to rapid growth. Look for expansion opportunities, such as buying a smaller company or merging with a larger one. Pursue new markets by developing new products or services to offer consumers.

Take time in this stage to analyze your operations and look for any processes that need re-engineering for greater efficiency or that aren’t profitable and can be eliminated. Create business continuity and contingency plans to prepare your company for any negative factors that could affect your business.

5. Maturity

Your company has the financial resources, operational procedures, and staff to thrive and earn top standing in your industry. The goal in this phase is longevity and proper management of all the company’s financial gains. In addition, you want to maintain the exceptional customer service that got your company to this point and continue to market to new consumers.

Knowing these five stages of small business growth as you prepare to launch your new company helps you achieve success.