Read the following part of an article on stages of business growth.
Applying the model
(See Figure plus text pp. 308-322.)
This scheme can be used to evaluate all sorts of small business situations, even those that at first glance appear to be exceptions. Take the case of franchises. These enterprises begin the 'Build up' stage with a number of differences from most start-up situations. They often have the following advantages:
If the franchiser has done sound market analysis and as a solid, differentiated product, the new venture can move rapidly through the Build up and Survival stages – where many new ventures founder – and into the early stages of Success. The costs to the franchisee for these beginning advantages are usually as follows:
One way to grow with franchising is to acquire multiple units or territories. Managing several of these, of course, takes a different set of skills than managing one does and it is here that the lack of survival experience can become damaging.
Find a franchiser (e.g. McDonald's, Hema) start-up in your own neighbourhood and 'plot' this start-up in the growth and development model of a business as presented (in 5.4.3).
Is it necessary to go through all these phases step by step or is it really possible to make a 'by-pass' or to have a very quick step in the beginning of a business?
Are there other factors that can speed up the take-off of a new business?