The Churchill & Lewis Growth Stage Model is a useful framework that helps analyse what particular stage of growth a small firm is at, and the issues and problems that they need to be aware of – now as well as in the future as the business grows.
The five stages of small business growth (from the HBR paper)
- Stage 1: Existence – Validation of idea, gaining enough customers
- Stage 2: Survival – Improve customer service, focus on profitability and growth
- Stage 3a: Success – Size and complexity of the firm grows rapidly. Owners face dilemma whether to exploit the company’s accomplishment or keep the company stable, securing funding for expansion
- Stage 4: Take Off – How to scale operations
- Stage 5: Maturity – Maintain customer service and entrepreneurial spirit while scaling. Get rid of inefficiencies.
Useful Links
The Five Stages of Small Business Growth: Paper on the Churchill & Lewis Model
Churchill and Lewis Growth Model for Small Bussiness
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