If you ask 10 different people, “How exactly do you define the term small business?" you'll get 10 different answers. The fact is that there are lots of different ways to define it: you can look at how many employees they have, or how much annual revenue they bring in. You can look at how they choose to organize, how long they’ve been in business, or even whether or not they do business internationally. One interesting reality common to the vast majority of small businesses is that they want to grow. And not only that, but at any given time they are on a growth trajectory.
There are five basic stages of small business growth, which are defined by a matrix of factors: number of employees, annual revenue, annual sales, and common challenges. The stages are:
- New Employer
- Steady Operation
- 7-Figure Business
- Growth Company
We’ve designed this quick quiz to help you find out what stage of growth you’re in as well as the challenges other businesses in your stage face.
As our CEO, Clate Mask, puts it, “Small business is a grow or die proposition.” That’s a serious way to put it, but it holds water. If a small business isn’t growing, there’s a good chance that it could slowly reach the point at which it becomes obsolete. Very few businesses can sustain themselves for long without adaptation and growth. So, the best way to understand how your company is growing is to recognize your current growth stage and to set your course for the next stage.
To learn more about the details of how growth factors into small business success, check out our free report, Defining and Achieving Small Business Success.