The Maturity Stage: Nurturing Growth" loading="lazy">
When a ship is making its way out of port, the tendency is there is a lot of congestion in the area, so a harbor pilot is usually hired to maneuver the ship out of the traffic. Once the vessel is already out in the open sea, it gets easier to steer the ship. At times, the ship officer on duty even places the ship on auto-pilot, that is if it has to be steered towards the same course for a long time.
Interestingly enough, the same can be done when a small business has arrived at the stage of maturity. In the stages of small business growth, the last stage of growth (before the dreaded decline) is called the Maturity Stage. By the time you have reached this stage, you are already miles away from being the “start-up” business you once were. You have steered your ship past the traffic, the harbor seems a lifetime away now. As you sail farther away from your humble beginnings, the horizon presents you with endless possibilities. Your business has become a big success, and it has reached the Maturity Stage. We suggest you get comfortable somehow, because you’ll be here for a while.
To get a better understanding of all this, let us discuss what is the Maturity Stage in business. Most business owners are probably wondering what to do when business has matured. So in this article, we will give out some points that small business owners, who have successfully gotten past the earlier stages of small business growth, must keep in mind so they can continue to steer their business towards further success.
Please, continue.
What is the Maturity Stage in Business?
The Maturity Stage in small business growth is characterized by changes in production abilities, operational expenses, completion of goals, and market size. At the same time, leaders in the business no longer have to be involved in smaller meetings that take place among junior officials of the company all the time. The owner is no longer as involved in every decision, which is totally different from when they were only starting out and everything depended on the owner’s skills, talents, and resolve.
Moreover, in the Maturity Stage in Business, previous small business owners would notice that growth has now slowed down, which is not exactly a bad thing. In this stage, the business has just reached a certain level of saturation that prevents them from achieving rapid growth in a short period of time. At this stage, there would be discussions on having another round of expansion, which may include hiring more people and opening a second or third location. When a business has become saturated, it’s like a person growing so tall that their head hits the ceiling. The only way for them to keep growing is to somehow break the ceiling.
Every now and then, in the Maturity Stage, the company might also exhibit expansion by taking on a different ideology– this can be in the form of additional products/service, or of taking on Corporate Social Responsibilities. Only a business that has reached the Maturity Stage can think of these things.
Now that we’re clear on what is the Maturity Stage in business, you are probably wondering exactly what to do when business has matured. That is great because we will discuss that in the succeeding paragraphs!
Manning the Ship: What to do When Business has Matured
A business that has reached the Maturity Stage is like driving the ship in the open sea. In the open sea, there is no traffic. You won’t be in danger of sinking buoys, running aground, or colliding with another ship. You would probably decide on a course and steer towards that direction for a while, and if such is the case, then you can place the ship on autopilot. Keep in mind however, that there are still pitfalls that business owners can land in if they are not careful.
In the Maturity Stage, the owner has already made the decision to expand, and may already be in his/her second wave of expansion. This is only possible if he/she hired people with whom to delegate their previous duties, and we cannot stress enough the importance of delegation in the maturity stage of business.
One of the trickiest aspects of a business being in the Maturity Stage, is consolidating and controlling financial gains brought about by rapid growth. By this time a sufficient number of staff and what we can call “corporate managers” have been brought in so that the owner no longer needs to be involved in lower decision-making. This is where you’ll see the importance of delegation in the maturity stage of business. When the ship is on autopilot, it keeps true to its course, at least for a certain period of time. While the ship captain’s opinion is needed from time to time, a lot of decisions must also be made by lower ranking officials. The first, second, and third officers are there to make decisions involving their own functions. The chief engineers, deckhands, and other staff on board also have decisions that come with those functions. The captain need not meddle with those.
In the context of business that has reached the Maturity Stage, the owner and the business are now separate. The business is not and should not be dependent on the owner anymore. Although the owner will always have the last say on the direction that the business is taking, he/she must have sufficient trust in the people he/she hired so as not to micromanage every detail of the business. Doing so can imperil the whole company.
So exactly what must one do to avoid this?
Think about the systems you have in place. Can they handle the needs of a larger company, or must you come up with a more sophisticated system so your business can cope? Is the current cash flow able to sustain our continuous growth? Do you have the sense of forecast and vision to be able to keep up with the changing demands of technology and the current market trends to make the company relevant and desirable in the eyes of consumers?
Lastly, do not forget the importance of delegation in the maturity stage of business. Ask yourself if you have the right people to manage a growing company and if you do, trust them with their own functions and have faith that they will be able to deliver.
Final Take: Hitting all Targets
In the Maturity Stage of business, you are truly hitting all your targets. It is important, therefore, to strike the perfect balance between trusting your people enough that you can let them man the ship in your stead, while at the same time, having the vision to take the business to unchartered waters every now and then, so as not to sink into irrelevance.
