Plan for Slow Steady Progress

Published: Jan 19, 2005

Application

Most businesses require progressive growth. Each type of business goes through this cycle at different rates.

Four basic stages can be:

a gestation period when concepts are formed and start becoming a reality;
an incubation period when the fragile enterprise requires much nurturing and support;
a maturation period when systems, a customer base and staffing become established; and
a stabilization period when assets and people become reinforced for long term growth and survival.

The small business entrepreneur must plan for a modest progression through each of these stages. A growth rate of 30% is considered healthy. Investment capital must be managed carefully and according to these stages of growth. The more money you burn early, the less you'll have left to help generate a return in the later more productive stages. Meanwhile, don't squander revenue capital and prepare for setbacks. Keep an emergency fund.

No business plan predicts a major setback in year 2.

Stories

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Outcomes

Better awareness of your business conditions.
Being prepared for inevitable setbacks.

Plan for Slow Steady Progress

Application

Stories

Outcomes

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