The business is driven by the imperative of making sales. Without sales, there is no survival. The market is approached in a random way initially. Low-hanging fruit is the objective. Successful business sales patterns eventually replace ad hoc experimentation and not knowing where the next piece of business will come from.
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Sales and customers reach a critical mass. Employee numbers are now becoming significant. Whereas sales was crucial during the start up and emerging stages, the imperative now shifts towards developing the company‚ brand position in the market and an operational, decentralised infrastructure with the capability to sustain growth as the hot product fades and members of the initial founding team move on.
As the number of clients, employees and transactions increases, along with organizational complexity, the business must focus on operations and, in particular, must understand which processes are critical to the brand and future revenue growth. Functional departments have emerged- finance, marketing, sales, IT, HR and operations/production- along with a crisis in autonomy. Business planning now becomes critical.
The Enterprise begins to develop a decentralized organization structure, to heighten motivation at the lower management levels and leverage their market intelligence. The business has a decentralized organization structure, operational and market level management responsibilities, profit centers, financial incentives, decision-making based on periodic reviews, top management acts by exception and there are formal communication processes and media.
Yet, eventually, the next crisis begins to evolve as the top managers sense that they are losing control over a highly diversified field operation. Freedom breeds a parochial attitude. The crisis of control often results in a return to centralization, which is now inappropriate and creates resentment and hostility among those who had been given freedom.
Company Growth Drivers
marketing & sales
- Promote the new product that is different.
- Capture initial customer accounts and commercialise.
- Get revenues flowing in, to fund big sales push.
- Additional functions implemented ; separating manufacturing from marketing
- Establish a management direction focus to replace the ad hoc management culture
- Functional organizational structure is put in place. Different departments are designed.
- Formal communication results as hierarchy and employees increase.
- Operational efficiency becomes important
- Systems need to be set up for inventory control, accounting, order processing
- Establish lines of credit to support cash flow
- Manage earnings, customers and suppliers as a support to cash flow
- Devise a funding plan : identify funding requirements; match with funding sources; identify potential funding types and funding contacts and create the funding proposition
- New customers
- New staff
- Salary and merit increases