This framework around small business growth is based on the fact that all businesses experience common problems that arise at similar stages in their development. Familiarity with this small business strategy allows the business owner to attain invaluable insights. Includes case examples. Full preview and download can be found here: http://learnppt.com/powerpoint/52_Five-Stages-of-Small-Business-Growth.php You can find other business strategy frameworks and documents here: http://learnppt.com/business-strategy.php http://learnppt.com/powerpoint/frameworks/ http://learnppt.com/powerpoint/diagrams/

7. Cash is a critical input to success in the beginning stages, as well during the Take Off phase to fuel acquisitions and marketing spend Critical Success Factors – Cash There is little criticality of cash in Stage III, because the company has a profitable and sustainable business model (for its current scale). Size and Complexity RELEVANT OR NATURAL BY-PRODUCT CRITICAL TO SUCCESS Cash Source: Churchill & Lewis, The Five Stages of Small Business Growth, Harvard Business Review THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/ STAGE V Resource Maturity STAGE IV Take Off STAGE III Success STAGE II Survival STAGE I Existence

8. As the owner grows its business, there is a clear trade-off in critical between the owner’s ability to execute versus his ability to delegate Critical Success Factors – Owner’s Abilities The owner needs to recognize the need to delegate and relinquish responsibilities to ensure the company’s continued growth. Size and Complexity RELEVANT OR NATURAL BY-PRODUCT CRITICAL TO SUCCESS Owner’s ability to execute Owner’s ability to delegate Source: Churchill & Lewis, The Five Stages of Small Business Growth, Harvard Business Review THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/ STAGE V Resource Maturity STAGE IV Take Off STAGE III Success STAGE II Survival STAGE I Existence

9. Additionally, we have identified 8 key management factors—4 company factors and 4 owner factors Key Management Factors Critical Success Factors – Key Management Factors Financial Resources— including and borrowing power Personnel Resources— relating to numbers, depth, and quality of people, particularly at the management and staff levels Systems Resources— in terms of the degree of sophistication of both information, planning, and control systems Business Resources— including customer relations, market share, supplier relations, manufacturing and distribution processes, technology, and reputation Owner’s Goals— for himself and for the business Owner’s Operational Abilities— in doing important jobs, such as marketing, innovation, producing, and managing distribution Owner’s Managerial Ability— including willingness to delegate responsibility and to manage the activities of others Owner’s Strategic Abilities— for looking beyond the present and matching the strengths and weaknesses of the company with his goals COMPANY FACTORS OWNER FACTORS 1 2 3 4 5 6 7 8 THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/

10. Though it is a long and difficult process to reach Stage 5, there are numerous lucrative exit opportunities along the way Evolution of Small Companies To avoid bankruptcy, companies need to maintain their entrepreneurial culture by continuing to innovate and staying relevant. Enter Stage II Enter Stage III Enter Stage IV Enter Stage V Sell Assets Go Bankrupt Business is open! Sell at a loss Go Bankrupt Stuck in Stage II Stuck in Stage III Go Bankrupt Sell at a profit ($) Drop back to Stage III Go Bankrupt Sell at a profit ($$) Drop back to Stage II Operate Drop back to Stage IV Go Bankrupt Sell or merge($$$) Growth Growth Growth Growth Growth May be triggered from large market change – e.g. disruptive technology THIS IS A PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/ STAGE V Resource Maturity STAGE IV Take Off STAGE III Success STAGE II Survival STAGE I Existence

11. END OF PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/

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