Business Growth Stages

What stage of growth is your business in and what should you be focusing on?

There are essentially 4 stages of business growth:

First Stage – Setup

The business is in its infancy. The concept has been proven and the model tested. Systems and processes have been set up and the brand is getting some traction. Usually at this stage the focus is on making sure the brand and value proposition are clear, all platforms are performing correctly, brand awareness/engagement is increasing to acquire new customers and the customer journey is being reflected upon. It is critical to be nimble as financial resources are usually limited and mistakes can be very costly. 

Second Stage – Growth

The business has gradually increased its performance within a given territory. The focus is on acquiring new customers while engaging the current customer base. More information about the customer journey is gathered and a better understanding of the customer segments becomes evident. Databases and automation play a pivotal role here. This helps in structuring campaigns for maximum engagement and conversion. This information can also be used to reevaluate the marketing strategy moving forward. Although there are more financial resources available during the growth stage, it is critical to closely assess all marketing campaigns. Attribution comes into play with greater scrutiny. Furthermore, this stage is often linked with hiring staff and the moulding of the company’s culture.  There are many examples of companies in this phase, especially tech companies like Autopilot, Bopple, Jarvis and many more. 

Third Stage – Expansion

Success has been achieved in one territory and it is now time to enter new territories. This stage requires great attention and the use of best practices to reduce costly and time consuming mistakes. The brand is already established and known locally but making sure the brand identity and values will be well represented in new territories is the main challenge. 

How do you select the next market to enter and why? Does the company decide to enter the market on its own, partner with a local company or acquire a local company to gain access to the territory?

How will the target audiences react to the new brand given their current consumer behaviour?

All options have implications that require careful consideration. An example of this phase can be seen with electric scooter companies like Segway and Razor that are strong in Europe and are now picking up in the US and other territories. 

Fourth Stage – Maturity/Renewal  

The business has been operating for years, it is established and well known. It has however reached a stage where growth is minimal and the risks of competitors gaining much praised market share are evident. Furthermore, there is the risk that the product or service that is being offered may become obsolete or not as relevant as it used to be. This phase requires a clear understanding of how the market is shifting and how competitors are evolving. Where is the company now and what is it doing to stay relevant? An example of a company in this phase is Disney and how Disney Plus was introduced to stay relevant. 

Contact Lupo Marketing today to see how we can assist you at every stage of your business growth.