You just might be a Second Stage Business…
“It feels like I’m on an island with no one to turn to when I am making decisions about how to grow the business.”
“I know I started the business to do my own thing, but sometimes I just wish someone would tell me what to do next!”
“It’s tempting to turn to my employees for advice but I know that’s not the right path.”
“I’m pretty sure other business owners have this figured out, so why am I struggling so much?”
Do any of these sound familiar to you? Then maybe you are a second stage business – or on your way to becoming one! As a second stage business, you are no longer a start-up, but not quite large enough that the business can run smoothly without your involvement.
You already have customers and employees, but you may still sometimes feel like you’re “flying the plane as you’re building it” – figuring out what customers want, what to charge, how to manage employees and establish some processes.
What is a second stage business?
You are a second stage business if you are beyond the start-up phase of growth (aka you have some customers and employees, and you’re making steady money).
And you are interested in continuing to grow your business. Now, what that means might vary for each of us.
Some want to grow to reach a comfortable income for the owner and have a business that runs itself pretty smoothly.
Others want to build something up that has enough value to sell it when they’re ready to retire.
And some can envision growing their business to something spectacular, perhaps through a franchise model, or expansion to multiple geographic regions or multiple product/service lines, or some other form of world-wide domination.
In general, second stage businesses have annual revenue from about $1 million to around $50 million, and have, on average, 10-99 employees. Second stage businesses are still pretty small, but mighty!
Second stage businesses make up about 17% of U.S. firms but account for nearly 40% of jobs and economic growth. Go Second Stagers! You are the job creators for your community!
Growing Pains
As you work to grow your business, you might encounter some of the same issues that other businesses of your size run into – regardless of your industry. These include challenges like:
- Managing cash flow
- Hiring and retaining employees
- Developing systems and processes
- Creating/maintaining company culture
- Planning for long term growth
- Getting comfortable with delegating
And sometimes it can feel as if you are navigating these issues in a vacuum with no clear support.
Most government programs focus on start-ups or large businesses looking to relocate.
Venture Capital and Angel firms want to see a startup that can scale rapidly and be acquired.
Traditional bank loans only help you grow if you’re buying real estate or equipment. And (some might add) if you already have plenty of money to fund your own growth!
So who is looking after the small business owner? No wonder we all feel so alone as we navigate this journey!
You’re Not Alone (Even If It Feels Like It)
Here’s the thing: being a small business owner can feel isolating. You’re so busy putting out fires that you barely have time to grab lunch, let alone connect with other business owners. But here’s a secret: your peers are going through the same thing.
You are NOT on an island. Your peers do NOT have it all figured out. And you can come together to help each other and feel better about your journey, regardless of your goal (comfortable life –> world domination).
I am willing to bet that you’ve tried some things that worked well for your business, and some that did not go well at all. Imagine comparing notes with a room full of similar size business owners so you can all learn from each other!
The Power of Peer Groups
That’s the value in being in a group of fellow business owners who get it. They understand the late nights, the tough decisions, and the weight of responsibility. They’re not just there to commiserate (though sometimes that’s needed too), but to share ideas, offer fresh perspectives, and hold you accountable.
Peer groups can provide:
- A sounding board for new ideas
- Shared experiences and lessons learned
- Accountability for your goals
- A network of potential partners and collaborators
- A reminder that you’re not crazy (or at least, not the only crazy one)
Embracing the Journey
So, here you are. You’ve built something amazing. You’re contributing to the economy, creating jobs, and living the entrepreneurial dream. It’s not always easy, but it’s always worth it.
As you navigate the challenges of second stage growth, remember this: every big business started small. They faced the same hurdles you’re facing now. The difference is in how you approach them.
So, take a moment to be proud of what you’ve accomplished. Then, build a bridge between the islands. Share your stories, your struggles, and your successes. Because together, we can turn those growing pains into growing gains. (Did I just say that? Not my style, but I’m sticking with it)
After all, the view from the beach is always better when you have someone to share it with.
Ready to start connecting with other small business owners? Rise Over Run offers a free event every other month on topics of interest to businesses like yours. Meetings are held on odd months, on the third work day of the third week at 3:00 Central Time. In other words – the third Wednesday of every other month at 3pm.
Our first Rise Over Run meeting is Wednesday November 20 at 3pm Central! The topic for discussion is AI Tools – helpful, useless, or will lead to the robot apocalypse? Register here to get the Zoom link for this meeting.
