Talking Cents

The different stages of business growth

Every business’ main goal is growth. Whether you are looking for financial growth or are a non-profit, a drive for growth is what every successful business has in common. Here at M.A.S Partners, the leading small business accountant in Zetland, we help hundreds of different businesses in different industries grow. With so much experience, we have seen all the different stages of growth, and what a business needs to do to progress.

Startup stage
The startup stage is arguably the hardest part. This is where the business is in the initial stages, and generally grows slowly. Most startups are making their attempts to establish themselves in the market, work out supply chain wrinkles and stay on budget. This can be difficult as this can take an experienced team to do so. To help with this, you need to keep a close eye on your cash flow, ensuring everything is accurate; concentrate on achieving your immediate goals, such as acquiring a certain number of customers; and adapting to feedback from your customers. In any business, it is important to listen to feedback- especially if you are a startup.

Early growth stage
Once you have established your business, its values and brand image, you are most likely in the early growth stage. You are beginning to see consistent customer and revenue growth. As a business, it is not only important that you maintain this growth, but also increase it. During this stage, you may struggle to meet the demands of increasing sales and customers. You may also struggle to balance your time between managing your business, and also investing in the growth of your business. To help with these challenges, be sure to create a realistic business growth plan, including as much detail as possible; make your processes more efficient; set up a management and reporting system; and hire more people so you can focus on executing your growth strategy.

Expansion stage
As you have a solid flow of cash, consistent growth, and good stock management, you are able to push for greater opportunities. With any growing business, there will be many opportunities- however it is important that you choose the right one for your business. If you plan on expanding into new markets, it can be difficult to acquire new customers or have your current customers continue to buy from you. The addition of new revenue streams will be a great way to grow your business, however acquiring them and maintaining them may be a challenge. When in this stage, it is important that you plan all your large decisions careful, ensuring that your expansion will give you a high return on investment; be realistic with your strategy; and focus on areas that will further complement your business.

Consider M.A.S Partners for small business accounting
Regardless of the growth stage you are in, you will need a small business accountant. Although it requires an initial investment, the payoff is huge in the long run. Our small business accountants at M.A.S Partners are experts in cash flow analysis and can help your organisation grow. In addition to cash flow, we also manage your accounts receivable to ensure that you are paid what you are owed. For more information on our small business accounting services, click here.