Alicia Sisk Morris CPA | Start-Up to Growth-Stage – Now What??
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Start-Up to Growth-Stage – Now What??

28 Sep Start-Up to Growth-Stage – Now What??

According to Fortune.com article Transitioning from a start-up to growth-stage Company written by Glenn Soloman there are four stages to a company as they move into the growth phase. A start-up will move through these and possibly more stages as they hit their growth spurt. Glenn focuses on these four:

1)  Hidden gems: These are highly skilled and highly valued employees. Just because they are highly valued it does not mean that they are in upper management. These are individuals who are 10 times better than anyone else. Because of this, they should be easy to spot. For example, one sales engineer was responsible for 50% of a 100 million dollar sales price of the company. When the CEO left he took this sales engineer with him and at the second company this sales engineer was responsible for 25% of a 1.5 billion dollar company valuation. That is one hidden gem! Find them (they should be easy to spot) and keep them happy and close at hand.

2)    Find your flywheel: As a company grows, it is important that they not only get bigger they also get better (better products, production, service, even shipping – just to name a few). Glenn Soloman states “Just as a flywheel collects energy over time and then delivers it at rapid and increasing rates, you need to cultivate and nurture sources of potential rapid growth that you can unleash when needed to help propel expansion.”

3)   Stay focused:   Glenn Soloman further states “When you begin to see your core business ramp, it’s tempting to assume you’ve nailed it and start looking for expansion opportunities. Mistaking early success in your core business for an ability to succeed elsewhere can be fatal however.” As a company grows, it is best for them to continue to continue to focus on what products or services that form their basis of offerings. Sure it’s great to add another idea or product in the mix from time to time to see if it will build business but it is equally if not more important to keep the wheels moving in your core business category.

4)   Professionalize your processes: Once you pass the start-up phase of your business you then need to look at your internal processes and continue to upgrade them in order to maintain professional standards. Gone are the days when you are just happy to have the product shipped on time and that you have met payroll for the week. Now is the time to start thinking strategically at ways to improve your internal procedures and how to promote continued growth.

The growth phase is an exciting part of a company’s life cycle. There are many hurdles behind them but equally important ones in front. As you grow bigger with time it is good to focus on finding those hidden gems, and taking great care of them, as well as keeping focused on the next step professionally.

 

17 Comments
  • Adam Renkiewicz
    Posted at 16:28h, 02 October Reply

    Great article and understanding of the changes that face a company as they grow. Understanding the adjustments needed prior to entering a new phase in your company can only assist you as a founder to create an effective and successful business.

    • asmcpa@yahoo.com
      Posted at 20:02h, 02 October Reply

      Thank you Adam for your comments. Each phase of the business cycle has its own challenges and adjustments.

  • Nadia Phillips
    Posted at 17:19h, 03 October Reply

    These are all great tips! I especially like the point that was made about the hidden gems, I’ve seen this often in the professional/business world, and it seems to make the transition smoother for the one that has made the move.

    • asmcpa@yahoo.com
      Posted at 19:15h, 03 October Reply

      I personally have know some administrative assistance who are such hidden gems. I would happily hire them as I know how under valued and under paid they really are.

  • Joe Alvarado
    Posted at 08:34h, 05 October Reply

    Alicia, great article on the cycle of the business. I couldn’t agree with you more about the hidden gems. I think an employers nabbing of of them will beneficial in your company, even if it’s not in the upper management. Hopefully, entrepreneurs and upper management spot these individuals and one day these individual can be groomed to be part of the upper management. If these individuals did leave it could be detrimental to the team depending on the size of it.

    • asmcpa@yahoo.com
      Posted at 13:30h, 06 October Reply

      Yes, I too am a big fan of finding those hidden gems!

  • Dexter Diepholz
    Posted at 21:34h, 05 October Reply

    The tip to professionalize your processes is a great one. If the founder is an “idea” person, there may be resistance to start later rather than sooner. Working for a small company I have seen the benefits of this first hand. Although it requires a lot of energy and discipline at first, once those procedures are established, a lot less energy is expended to get things done.

    Dexter

    • asmcpa@yahoo.com
      Posted at 13:29h, 06 October Reply

      Thanks for your comment!

  • Mitch McDowell
    Posted at 20:37h, 06 October Reply

    Alicia,

    Good article. I liked the “Stay Focused” section. I have found that businesses sometimes attempt to expand their product or service offerings before honing the basic core of what they do.

    Mitch

  • Ellie Shown
    Posted at 21:01h, 06 October Reply

    Alicia,

    I wanted to comment about the third point you listed, which explains how important it is to stay focused on your core business. In an article that I found during my research, it suggested this same point. It explained that, while you may want to explore new business, it’s not easy or even sometimes possible at all unless you’ve first built your company to scale up. In other words, they called it “running before walking.” If you don’t have enough people, equipment, or even budget to pursue new business, you’ll end up getting ahead of yourself. I think it’s great advice because many entrepreneurs have bigger visions for their company, but we can’t let that propel us too quickly in the wrong direction.

    Thanks,
    Ellie Shown

    • asmcpa@yahoo.com
      Posted at 13:50h, 07 October Reply

      Thanks for sharing your research.

  • Chris Sitzman
    Posted at 17:08h, 07 October Reply

    In my organization hidden gems are very easy to spot. These individuals are clearly better than the rest of the employees. Hidden gems can be found at all levels of an organization. I have witness too many quality employees go unappreciated because of their current role in the organization. Everybody has a role to play in an organization and gems always excel in their role. Good management teams will be able to spot these gems and will do everything they can to retain them.

    • asmcpa@yahoo.com
      Posted at 18:04h, 07 October Reply

      Thanks for sharing your experiences with hidden gems.

  • John
    Posted at 19:14h, 07 October Reply

    I thought your post offered great insight on what to expect going from the start-up phase to growth phase. What stuck out at me the most was the fourth point that was made. It can be difficult going from “just making it work” to “truly being a successful company”. The idea of having a strategic plan and process in place is crucial. Great post!

    John

    • asmcpa@yahoo.com
      Posted at 19:55h, 07 October Reply

      Thanks for your feedback!

  • Angie Ritter
    Posted at 20:58h, 07 October Reply

    I really enjoyed your take on the various business stages. As the article discusses, I think it’s particularly important to note that the company’s top employees are not automatically its most valuable. Competitive advantage comes from a number of sources and, realistically, much of it often rests in the lower echelons of the organization. Disney World, for example, has identified its street sweepers as instrumental in providing a competitive advantage due to the fact that they play such a direct part in the type of experience that Disney’s customers have at the park. With this knowledge in hand, the company put more resources toward recruiting and training these personnel. Identifying your hidden gems is essential for truly knowing – and growing – your company.

    • asmcpa@yahoo.com
      Posted at 21:02h, 07 October Reply

      What a great example you shared! Thanks

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