J. Miller and Company Blog

August 6, 2008

5 Stage of Business Growth

Every business, whether a remodeler or General Motors, proceeds through the same predictable 5 stages of business growth.

Many remodelers find great success at Stage 3 – I call it the “sweet spot” because at this stage the owner sells, does a bit of estimating and generally enjoys a relatively stable business life and somewhat predictable net profit – unless of course he/she buys a bigger boat or too many color copiers (my great pet peeve).

However selling and estimating tends to lose the attention and interest of many owners after a few years and they attempt the jump from a Stage 3 company to Stage 4: this is where the owner sells less than 25% of total volume and spends the majority of his/her time coaching, mentoring and planning.

See the slides below for an understanding of this phenomenon.

5-stages

Management Theory ,