{"id":41674,"date":"2021-07-16T05:13:16","date_gmt":"2021-07-16T09:13:16","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=41674"},"modified":"2021-07-19T05:48:40","modified_gmt":"2021-07-19T09:48:40","slug":"business-stages","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/business-stages\/","title":{"rendered":"The 3 Business Stages: Infancy, Adolescence, Maturity"},"content":{"rendered":"\n

What business stages must entrepreneurs understand and navigate? What are the risks of each phase?<\/p>\n\n\n\n

In The E-Myth<\/a> Revisited<\/em>, Michael E. Gerber describes three business stages: infancy, adolescence, and maturity. He explains the characteristics\u2014as well as the risks\u2014of each. Business owners must learn to navigate these phases.<\/p>\n\n\n\n

Keep reading to learn about the three business stages of E. Gerber.<\/p>\n\n\n\n\n\n\n\n

The 3 Business Stages<\/h2>\n\n\n\n

It\u2019s important to understand where your business is in the typical life cycle of a small business. There are three phases: infancy, adolescence, and maturity. Each has various characteristics and risks.<\/p>\n\n\n\n

Business Stage #1: Infancy<\/h3>\n\n\n\n

In the infancy phase, the owner wears the technician hat<\/strong>. The business is driven not by what it needs, but by what the owner wants. In the infancy phase, you (the owner\/technician) want a place to work as you see fit, free of constraints.<\/p>\n\n\n\n

For a while, you\u2019re happy  functioning on your own. You don\u2019t mind working fourteen hours a day, every day, because you\u2019re used to \u201cpaying your dues,\u201d and besides, this work is for your own business. You\u2019re willing to do whatever it takes to keep the business afloat \u2014 doing the technical work plus buying, selling, shipping, ordering, and keeping the books. At this stage, you <\/strong>are<\/em><\/strong> the business. <\/strong>Your name may even be part of your business\u2019s name (for example, Joe\u2019s Place).<\/p>\n\n\n\n

Customers appreciate your work and keep patronizing the business. But the volume of work soon exceeds your capacity to get it all done. You work harder but start having problems keeping up. Your business has taken over your life; it\u2019s become your boss \u2014 a boss who can\u2019t be satisfied. You have a job that\u2019s even worse than the one you left. You may begin feeling hopeless<\/a> and disillusioned. At this point, many businesses fail \u2014 the exhausted owner\/technician gives up. <\/strong><\/p>\n\n\n\n

The problem is that you\u2019ve neglected your roles as entrepreneur and manager. You\u2019ve been taking solely a tactical approach focused on the work that needs to be done, rather than also taking a strategic view that would move the business forward. Part of a business owner\u2019s role \u2014 the entrepreneurial part \u2014 is to grow the business. That role is often absent during a business\u2019s infancy stage, as is the manager role responsible for ensuring things run smoothly. <\/p>\n\n\n\n

One reason you focus on your role as technician, at the expense of your other roles, is that you enjoy doing the technical work more than entrepreneurial or management work. But a more subtle reason is that you may be unable, at this stage, to separate yourself from your business. It\u2019s your name on the sign outside. You take pride in your work<\/a> and like that customers depend on you personally to deliver your product. Further, you can\u2019t imagine what your business would look like if you weren\u2019t<\/em> the one doing the work<\/a>. But when you are your business and your business is you, you can\u2019t get sick or take a vacation, and your business can\u2019t grow.<\/p>\n\n\n\n

Your business won\u2019t succeed if you play or fulfill just one role because it\u2019s the one you\u2019re most comfortable with. You need to learn all three: creating a vision<\/a> (entrepreneur), translating your vision into action through systems and processes (manager), and getting the work done (technician). When you balance all three, the business becomes energizing and rewarding rather than draining<\/strong>.<\/p>\n\n\n\n

Business Stage #2: Adolescence<\/h3>\n\n\n\n

If you don\u2019t give up in the infancy stage due to overwork, you move into the adolescent phase with the idea of hiring some help. You typically look for another technician, preferably with experience in the same field.<\/p>\n\n\n\n

Also, you might look for someone with experience doing the things you don\u2019t like doing \u2014 for instance, bookkeeping, ordering supplies, or maintaining a schedule. In fact, if you\u2019re like most overworked owners, if you can find an experienced person, you\u2019re happy to give up responsibility for those areas, in effect abdicating rather than delegating. You start enjoying shorter hours and less grunt work without giving much thought to what your employee is doing as long as things seem to go smoothly.<\/p>\n\n\n\n

However, without your oversight, problems start to develop and mistakes are made \u2014 for instance, you don\u2019t have supplies when you need them or the quality of your product slips and customers get upset. So you jump back in again (into your comfort zone) and start doing things yourself so they\u2019re done right, instead of developing the managerial and entrepreneurial skills<\/a> that would advance your business.<\/strong><\/p>\n\n\n\n

Business Stage #3: Maturity<\/h3>\n\n\n\n

Businesses can grow from infancy and adolescence to maturity, in which they have a clear sense of purpose<\/a> and direction. But the most successful companies start out differently, already knowing where they\u2019re going and how. Maturity isn\u2019t a phase for these companies \u2014 they\u2019re mature from the outset.<\/p>\n\n\n\n

The entrepreneurs who started companies like McDonald\u2019s and Federal Express had an entrepreneur\u2019s mindset. They understood what businesses are and how they work. In addition to business knowledge, they had clear objectives and a plan. <\/p>\n\n\n\n

For example, when Tom Watson founded IBM, he knew several things: He had a clear vision of what the company would look and act like, and he knew that to become a great company IBM would have to act like one from the start. He created a template for a great company and worked daily to match the company to the model. He focused on developing the business rather than \u201cdoing business.\u201d<\/p>\n\n\n\n

If entrepreneurs are to succeed, they must understand and navigate these business stages.<\/p>\n","protected":false},"excerpt":{"rendered":"

What business stages must entrepreneurs understand and navigate? What are the risks of each phase? In The E-Myth Revisited, Michael E. Gerber describes three business stages: infancy, adolescence, and maturity. He explains the characteristics\u2014as well as the risks\u2014of each. Business owners must learn to navigate these phases. Keep reading to learn about the three business stages of E. Gerber.<\/p>\n","protected":false},"author":9,"featured_media":41682,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,79,14],"tags":[421],"class_list":["post-41674","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-entrepreneurship","category-management","tag-the-e-myth-revisited","","tg-column-two"],"yoast_head":"\nThe 3 Business Stages: Infancy, Adolescence, Maturity - Shortform Books<\/title>\n<meta name=\"description\" content=\"The E-Myth Revisited lists three business stages: infancy, adolescence, and maturity. 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