4. Steady Growth

With an infusion of new capital, you have made the breakthrough into a period of strong, steady growth. At this point, you have many options. Some of the new financing may be used to launch new products or services, which will help bring the company’s market penetration to a new level. You will certainly want to develop a second level of management personnel as sales increase and operations ramp up. The company’s assets will grow, but so will its liabilities. Cash flow management will be very important.

Tasks that are normally accomplished during the steady growth stage include:

• Expand sales from regional to national and possibly international
• Start making bigger sales and/or obtaining larger contracts
• Increase production and improve management systems
• Expand marketing to support national and/or international sales
• Upgrade the business plan and look for sources of additional financing

Now that you have a track record of success, you will have more options when it comes to financing. Banks like to work with established companies, so it will be easier to get loans if you want them. Suppliers and vendors will also be willing to give you good credit terms. Your largest sources of funding, however, will be from a venture capital firm or by entering a strategic partnership with a company that can assist with manufacturing or distribution.

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