Group Members

1) Sana Afaq BBA-7

2) Umama Arshad BBA-7
3) Jaweria Akram BBA-7
The Five Stages of
Small Businesses

By: Churchill & Lewis

Introduction
Small businesses vary in terms of
Size of organization
Capacity for growth
Characterized by
Independence of action
Different organizational structure
Different management style
 Framework

Characteristi
c Current
Understanding
Nature challenges
Problems

Identification of the problems and proposed the solution

Developing a Small Business
Framework
Dimension
Business size
Company maturity
Stage of growth
Stages of Growth
1. Existence
2. Survival
3. Success
4. Take-off
5. Resource Maturity
 1. Existence
Problems
Obtaining customers
Delivering the product
Key question
Can we get enough customers?
Can we expand our production?
Do we have enough money to cover the considerable
cash?
 2. Survival
Is it workable business entity?
Does it have enough customers and satisfies them
sufficiently?
Problems
To check the relationship between expenses and
revenue
Breakeven point
 3. Success
To keep the company stable and profitable.
Sub-stages
success disengagement
success growth
 4- Take-of
How to grow rapidly and how to finance the growth
Key Question
Delegation
cash
 5. Resource Maturity
To consolidate and control financial gains
To retain the advantage of size and entrepreneurial
spirit
Expansion of management
Decentralization staffing and experiencing of
management
Owner and business is a separate entity
Cont
If company is unable to preserve its entrepreneurial
spirit it enter into ossification
Ossification
Lack of innovative decision making and avoidance of risk
Key management factors
For enterprise For owners

Financial resources
Owners goal
Personnel resources
Owners operational ability
System resources
Owners managerial ability
Business resources
Owners strategic ability
Varying demands
Owners talent
Less time doing, more time managing
Change in personal activities
Cash
People, planning and system
Matching business and personal goals
Business resources
Avoiding Future Problems
Quality and diversity of people
The system in place
Ability to delegate
Enough cash