Goldsmith Technology Commercialization Model
Step 15: Business Growth
Business Growth ultimately depends on more than increasing sales. As the world segments into the old and new economy, it means businesses must be agile and early adopters of new business models and technologies. However, these activities must be accomplished without sacrificing the integrity of business systems and operations.
To accomplish this feat requires that the company institutionalize strategic planning as a daily, dynamic process. This strategic planning activity must integrate with the overall enterprise management systems. The outcome of this activity should provide a set of critical performance indicators that monitor the health of the enterprise on a continuous, real-time basis.
The business growth stage often requires a management team with an entirely different set of skills than the entrepreneurial team that founded and launched the enterprise. As a result it is not unusual to see a management turn- over in a high performance company in the growth stage.
Definition: The business growth phase is that period during which business functions (management, production, financing, marketing, and human relations) are fully staffed and operational.
Objective: The objective of the business growth phase is to operate a business enterprise which produces a profitable product for which there is increasing market demand.
Product: The product of this phase is a business enterprise that is perceived by the market as a preferred source for the product and/or service.
The business activities common to this phase are those necessary to establish a foundation of sound business practices, implement a growth strategy, and ensure profitability.
During the business growth step, the following activities must be completed:
- Obtain equipment and facilities
- Hire and train personnel
- Execute contracts
- Arrange for next stage financing
- Institutionali8ze management vision, mission, and policies
- Regularly convene board of director meetings
- Monitor industrial business trends and practices
- Identify opportunities and threats to enterprise profits
- Conduct strategic and tactical planning for the enterprise
Milestones: Increasing Revenues
Funding Sources: Venture Capital (early stage round)
Business Information: The business growth phase will usually result in knowledge of market receptivity to the enterprise, price-value threshold of product, competitor response, emerging competition, critical factors for enterprise operating success.
Are you engaged in full-scale production?
Have you arranged for full scale production financing?
Have you institutionalized a corporate vision, mission, and policy?
Do you have a process to monitor business trends and practices?
Can you identify opportunities and threats to enterprise profits?