Growth Expansion

Stage 4 - Scaling the business - This is achieved when the company really has defined a "virtuous financial circle" (VFC) which it understands well and can replicate consistently.

At this stage you have proven that $X invested in sales and marketing will generate $Y revenue and profit. So expansion can be done with little risk. With well documented proof of this you can usually attract large amounts of capital easily. It also becomes relatively easy to see exactly what is needed to reach a large size company and how large you can get.

During Stage 4 the management style and focus must once again change. Often “professional management” is brought in to replace founders who often can't adjust to this needed transition from an entrepreneurial high speed and risk style, to one of planning, management and fine-tuning of operations. Timelines for planning need to be extend, the risks you take must be tuned down, as now there is much t loose. Things will happen much slower and are becoming more execution and management intensive.

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