How do you define second-stage growth?
Second-stage companies are those that have grown past the startup stage but have not grown to maturity. They have enough employees to exceed the comfortable control span of one owner/CEO and benefit from adding professional managers, but they do not yet have a full-scale professional management team.
A business typically begins to enter its second stage when it approaches $1 million in total receipts. The transition process can continue until it hits $100 million in receipts, although for most companies $50 million represents the upper limit of second stage. By $100 million, a firm will have to be professionally managed in order to continue to thrive and grow and be in its third stage of development. Employee numbers and revenue ranges vary by industry, but the population of firms with 10 to 100 employees and/or $750,000 to $50 million in receipts includes the vast majority of second-stage companies.
Beyond this, there are other signs that indicate to a CEO that second stage is at hand.
Read about them here.
Where is your business at? What have you done lately to take yourself out of your business and reflect on "next-level thinking" with your peers?
Photo credit: Laurel Delaney, WPO Chicago Chapter Chair