THE STAGES OF GROWTH

The Seven Stages of Business Growth

Our research identified seven distinct Stages businesses traverse as they grow in number of employees. Each Stage spans a specific number of employees, and within each of these Stages, there are rules and ideals that must be in alignment in order to create the optimal environment for business growth. When a business fails to follow the rules of growth, it often gets stuck or regresses. (To learn more about the background of our research, click here.)

Without a clear model for understanding the growth of a company, most entrepreneurs don’t have the level of predictability necessary to survive over the long haul. There are simply too many doors to choose from to select the right ones at a high enough rate to keep the business advancing. At each new level of complexity, the changing rules make it more likely that the business will hit a wall or a dead end.

The Stages of Growth provides a roadmap for the business leader. Organized by the key dimensions of a business, it offers clear guidance on the rules of growth for each Stage.

“The Stages of Growth is the most accurate roadmap I’ve seen for the leader of a small or midsize business.”

— CEO, Stage 6 Engineering Firm

Business owners benefit from the Stages of Growth by learning to diagnose where their business currently is, understanding what needs to be done to get the business where they want to go, and even predicting and proactively preparing for what comes next as the business grows.

The power of the Stages of Growth is multiplied within an organization when it becomes a shared framework for the leadership and management team to communicate about growth. As team members begin communicating about key issues using the same language and understanding, the organization functions more smoothly.

What’s the difference between each Stage?

There are many dimensions to a healthy business. It’s helpful to think of each dimension as a facet of a diamond. Each facet is one way of looking at the diamond, but no single one provides the full picture. In the same way, healthy businesses exhibit similar characteristics that can be viewed from different angles. When taken together, they create a complete picture of what a successful business looks like.

The Stage Guidebooks are the best way to understand what each dimension of a healthy business looks like across the Stages of Growth. For a taste of what each Stage entails, we invite you to browse a collection of Stage-specific blog posts. Click below to access this curated collection to deepen your understanding of what a healthy business should look like at every Stage of Growth. You will also find links to resource pages that provide valuable information relevant to each Stage.

Access free Stage-specific content and resources to grow your understanding of what it takes to be successful at every Stage.

The Start-Up Stage is not for the faint of heart. While discipline and determination are required to succeed, it’s also the case that everyone needs to embrace the chaos.
Click here to read a collection of blog posts about the unique challenges and opportunities of a Stage 1 business.
Click here to access resources for a Stage 1 business.
During the Ramp-Up Stage, it’s important to keep the team unified and grounded. The pace of change should be slightly slower than in Stage 1.
Click here to read a collection of blog posts about the unique challenges and opportunities of a Stage 2 business.
Click here to access resources for a Stage 2 business.
Known as the Delegation Stage, Stage 3 is all about — (you guessed it) — delegation. Leaders must learn to train and trust their team for the business to survive.
Click here to read a collection of blog posts about the unique challenges and opportunities of a Stage 3 business.
Click here to access resources for a Stage 3 business.
The Professional Stage is when the company becomes too large for one person to effectively lead alone. A professional team of managers must become the driving force of the organization.
Click here to read a collection of blog posts about the unique challenges and opportunities of a Stage 4 business.
Click here to access resources for a Stage 4 business.
During the Integration Stage, a business must avoid developing a silo mentality. If not, it will cease to grow as departments compete against one another for resources.
Click here to read a collection of blog posts about the unique challenges and opportunities of a Stage 5 business.
Click here to access resources for a Stage 5 business.
The Strategic Stage is all about planning ahead for the next several years. As systems and processes become more complicated, employees need to be a top priority.
Click here to read a collection of blog posts about the unique challenges and opportunities of a Stage 6 business.
Click here to access resources for a Stage 6 business.
The Visionary Stage is when it’s time to recapture the entrepreneurial energy of the early years. Guard against complacency by revamping the business model and continuing to innovate.
Click here to read a collection of blog posts about the unique challenges and opportunities of a Stage 7 business.
Click here to access resources for a Stage 7 business.

Business Growth Framework

The Business Growth Framework Guidebook is the best resource for getting a full understanding of the seven stages of growth. It pulls together information from across each stage and compares them according to each dimension of a business. For example, you will find a chapter on Builder-Protector Ratio which first explains the dimension and then compares how it looks across each stage of growth. We highly recommend this book as a resource for all business advisers who want to deepen their comprehension of the Organizational ReWilding framework.

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