Strategic Planning in the Small Business

Unit 3

HO 3-3 (continued)

STAGES

OF SMALL

BUSINESS

DEVELOPMENT

Three

stages of small

business development-the

start-up stage,

stabilization

stage, and growth

stage-will

be considered.

As

the business moves

from one

stage to another,

its emphasis

shifts.

As

such, different

strategic postures

seem appropriate

for different

stages and

conditions

within

stages.

The discussion

of stages of

growth is adapted

from the

work of Arnold

C. Cooper.

3

igure

4-3

FmSds to CamiEa

When OMcun A Sfegik

Neazr

Stw

of &*f Dsm.u

Dawpeamn

Stat-Up

Stage

The first stage

in Cooper's typology

is the

start-up stage.

This stage encompasses

the

decision

to

start a new

business and the

initial period

when the business

attempts

to become established

and get

on its feet.

During the

start-up stage,

the un'.!'lying

concern is

typically one

of

survival.

Often, the

firm's products

or services

are adequate

and properly

conceived,

but

owners

or managers possess

limited

understanding

of how to make

the consumer

aware of these

products

and services.

The manager

struggles with

the decision of

where and how

to position

the business

within the chosen

industry.

Typically, a

business in this

stage will

limit its scope

to one or two

products; thus

a single

product/market
posture
is emphasized.
Given the
limited financial
and personnel
resources

available to
businesses during
the start-up
stage, a
single product/market
posture
is the most

realistic.

' Arnold C.

Cooper. "Strategic

Management:

New

Ventures and

Small Business."

In

StrategicManagement,

ed. by

Dan E. Schendel

and Charles

W. F. Hofer.

Boston:

Little,

Brown, and

Company,

1979, 316-327.

293