The 5 Stages of Small Business Growth (and How to Conquer Each One)

Starting a business is a wild ride—exciting, nerve-wracking, and full of unexpected twists. Whether you're just getting off the ground or gearing up for major expansion, knowing where you stand (and where you're headed) can make all the difference.

Harvard Business Review breaks down small business growth into five key stages—and we’re here to walk you through them in a way that actually makes sense.

1. The "Just Trying to Survive" Stage (Existence)

At this point, you're probably wearing ALL the hats—CEO, marketer, customer service rep, accountant, and maybe even the office cleaner. Your focus? Getting customers and making sales.

What you should do:

• Spread the word—use social media, networking, and even old-school flyers if needed.

• Make sure your product or service actually delivers (happy customers = repeat customers).

• Keep an eye on cash flow—because no sales = no business.

  
  

2. The "Can We Keep the Lights On?" Stage (Survival)

Congrats! You’ve made some sales, but now the real challenge begins: staying afloat. You’re probably breaking even (or trying to), and cash flow is tighter than your morning coffee budget.

How to make it through:

• Keep expenses lean—ditch anything unnecessary (do you really need that fancy office chair right now?).

• Track your numbers—know what’s coming in and going out.

• Start thinking about systems and efficiency—so you’re not glued to your business 24/7.

  
  

3. The "We’re Actually Making Money!" Stage (Success)

You’ve hit a groove, and business is finally turning a profit. Now you’re faced with a big decision: Should we scale up or stay steady?

Your game plan:

• If you want to grow, start delegating (yes, really). Hire people, automate tasks, and free yourself up to work on the business, not just in it.

• If you want to stay steady, focus on maintaining profitability and keeping customers happy.

• Invest wisely—this is the time to think about long-term growth, not impulse purchases.

4. The "Things Are Getting Serious" Stage (Take-Off)

Your business is booming, and it’s all happening fast. This is where many businesses either thrive or completely fall apart because scaling too quickly can be a disaster.

How to handle it:

• Get your operations in check—solid systems and processes are a must.

• Manage your finances—growth can be expensive, so don’t let cash flow dry up.

• Build a strong team—good leadership and the right hires make all the difference.

5. The "We’ve Made It/Now Let’s Stay on Top" Stage (Resource Maturity)

At this stage, you’re an established business with a strong customer base. You’re profitable, and your brand is well-known. But (and it’s a big but), you can’t just sit back and relax.

Keep the momentum going by:

• Staying innovative—what’s next for your business? New products? New markets?

• Keeping operations efficient—because even the best businesses can go under if they’re not careful.

• Investing in your people—your team is your biggest asset, so make sure they feel valued.

So, Where Are You Now?

Every business goes through these stages, and knowing where you stand helps you make smarter decisions. The key to success? Market research.

Pro tip: Harvard Business School recommends digging into market trends, surveying customers, and keeping an eye on competitors to stay ahead. Even a little bit of research can make or break your next move.

Which stage is your business in right now? Drop a comment below or DM us—we’d love to help you grow!