Businesses at this stage are experiencing the successful consequences of the previous stage.
There is financial gain brought on by rapid growth and expansion of internal operations to respond to the scaling-up of the business’s product or service offering.
At the point of resource maturity, companies want to consolidate and control these financial gains while still keeping that original spirit of entrepreneurial potential alive.
The business is expanding, however, and will need tools that respond to its level of growth, including more extensive and professionally administered budgets, strategic planning, improved management and formal talent development initiatives.
A major hallmark of resource maturity is financial maturity. Companies embedded in this stage have the financial resources to undertake the above initiatives. Management is decentralised and there is an adequately skilled workforce for growth.
At this point, businesses will ever only take a tumble down or begin a slow decline if they start to take things for granted. As much as they have consolidated their size, gained a foothold in the market, have built considerable financial resources and the commensurate managerial teams that support this size, their strength can be their Achilles heel.
Why? Because this is the point at which companies begin to slip into complacency. They stop thinking about their customers and take things for granted.
It’s not that they’re not focused on competitors entering their space — it’s that they’re simply not innovating anymore. They’re not hungry and the moment is ripe for disruption because they’ve failed to focus (and forecast!) where their customers’ expectations are going next.
Yes, they have the advantages of size, financial resources, and managerial talent. But to maintain their position, they’ll need to cultivate that original entrepreneurial drive and spirit, to innovate and continue to take risks.
Otherwise, they risk becoming rooted and, eventually, obsolete.
You can find the full eBook ‘The stages of business growth and what you should be focusing on’. In this eBook we dive into each stage of business growth (existence, survival, success, take off and resource maturity), the questions a business owner or leader should be asking of their business and the types of growth marketing, data & insights and digital transformation activities you should be considering to make it successful.