5 Stages of Growth in a Small Business-Stage 1 Parts 1 and 2 Existence $31-161K


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There are 5 stages of growth that every company goes through if they start a company ‘from scratch’ or ‘ground floor up’, so to speak.

Stage 1, Existence: You are just trying to get the business up and running. There are approximately 14,000 cleaning services in America and 8320 are in this stage. 75% of those in this stage will go out of business in the first year. They produce $31-151K/yr in gross revenue and have 1-4 cleaners

Stage 2, Survival-Minimal growth but company is up and running.ÂCould still fail. Running out of money. There 2308 companies in this category. $155-410K/yr in gross revenue and 5-12 cleaners

Stage 3, Success-There is a self sustaining customer and employee base in place and there is no longer any danger of going out of business. There is sufficient capital to make it through a major crisis. $410K-1.5M/yr gross revenue and 13+ employees. 1654 companies are in this stage

Stage 4, Take off. Your entire company is self sustaining. Annual gross revenue is $1.5M-27M. There are 100 companies in this category and they have 35+ employees.

Stage 5, Resource Maturity. You take what you have learned and/or the profits you have compiled and invest it in some way. You do not stop with what you have but go into another line of business, capitalizing on what you have.


To move from each of the stages into the next you must develop 7 key factors, and everything connected to that factor. The seven key factors are:

  • Information and Analysis
  • Strategic Planning
  • Human Resource Development and Management
  • Process Management
  • Business Results
  • Leadership
  • Customer Focus and Satisfaction


Learn what is involved in each of these factors and then develop the necessary forms, processes, systems and tracking mechanisms to put everything in place that is necessary to evolve to stage 2. i.e.Information and Analysis includes putting a process in place for tracking, trending, analyzing and managing things like customer maps, billing information, response cards, quality call comments, performance appraisals, supply usage, attendance, tardiness, turnover, etc. This is just part of the first key factor to your moving from stage 1 to stage 2. Sound complicated? If you have never been in an office setting before it will be. You will learn a lot and it will be as much fun as you let it be. Do not waste time reinventing the wheel. There is a world of resources out there. Search each of the key factors above on the internet. They are the basis for the Malcolm Baldridge Award application so there is a ton of information out there on each of the key factors. Read it. Make a plan and follow your plan into the next stage.

Ashley Windsor Testimonial – CleanSpace –

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