This Tip describes the first two business growth stages from a craft organization to a promotional organization.
“A big business starts small.” Richard Branson
Business Growth Stages
A Craft Organization
Many businesses begin as a craft organization around the founder’s kitchen table. Everyone is equally invested in the activities, performs similar functions, and enjoys daily access and communication. When it is time to complete a task, whoever is available assumes responsibility. There is no need for supervisors at this stage. If training occurs, it is very informal.
Everyone involved in the business discusses decisions. To a great extent, the craft organization is a real team effort with direct and informal relationships and connections between all its members.
A Promotional Organization
If the business is going to grow, it moves into a promotional stage. Someone has to get the word out to prospective customers. As the figurehead of the company, the leader (and founder) starts to be involved in public relations and marketing activities. Decisions need to be made quickly to take advantage of market opportunities. This means that the leader may be gone for periods of time. This creates a new challenge to internal business communications.
It is an exciting and intense time of considerable and fast moving growth. In order to support this growth, team members focus on their own areas of expertise instead of performing a range of tasks. There is no time for staff to learn new skills. To meet immediate needs, they hire new staff to plug in essential gaps in the team’s capabilities. The addition of these team members creates a different dynamic. This is because what was once a close-knit family has to welcome individuals who lack the same history and involvement in the business.
Access to the Leader is Limited
The leader may start to communicate directly with only one or two other team members. This is due to a lack of time and the need to expedite decisions. It can cause the other original members of the team to become dissatisfied. Their access to the leader and their involvement in decision-making is becoming more limited.
They may also begin to feel less connected to other team members. This happens as their work responsibilities become more specialized in order to respond to specific market needs. Their lack of access to the leader, lack of time, increased workload, and increased fragmentation can begin to take their toll.
At this point, the leader requires the knowledge and skills to:
- bridge this communication gap,
- coordinate the different parts of the business,
- manage the workload, and
- build staff morale-
in short, to lead the growing business.
In Part Two, we’ll look at the third and final stage of business growth.
May your learning be sweet- and safe.
Deborah
#businessdevelopment #businessgrowth #businessstages
