The Stages of Small Business Growth

Your favorite pizza place and the popular Indian corner bistro may not quite look the same, but studies and research have shown that both actually go through exactly the same stages of business growth. They may be physically different, use different marketing strategies, and have different management systems, but they will be bombarded with common problems and issues at relatively similar phases of their growth.

Getting a good understanding of the stages of small business growth and the inevitable challenges, trials, and problems that go with running it is helpful if you want to be able to fairly evaluate your business’s growth pattern and help you figure out what your next steps should be.

1. The Start-Up. This is when you move on from just having an idea to actually doing the business, and this will take a lot of your time, stamina, perseverance, and a good list of first-time customers. It should go without saying that you will need cash or an initial capital investment here. While you will be supervising some help or staff that you have, you practically do everything in this stage. Your primary goal at this point is to exist. 
   
   At this point, you will need to have a clear marketing plan as to how you can identify, attract, and sell to your customers so that they remain loyal and stick to using your products or availing of your services.

2. The Survival. If you have proven the market that you indeed have a product or service that customers have a use for and will pay for that, then you have moved on to the next stage of your business growth: survival. This is tantamount to saying that you need to make enough money to finance growth.
   
   Many small businesses rarely get off this stage. While other business owners may just be content with getting marginal returns for all their investments, there are those that are simply unable to come up with enough financial resources to cover additional costs such as the development of new products or the employment of more people who can help provide more services for the business. This is where you really have to think whether you are capable of running the business; if you think you cannot, then you need to hire one who can.

3. The Success.  This is the point when the business is considered economically healthy. Here, the company is more or less generating profits that can ensure its success. However, it is at this point where you as the owner should look closely on the business’s organizational development, delegation of the management, financial stability, and the like and determine which needs more attention, modifications, etc., and make sure to give it immediate response.
   
   

   

   
   You may also opt to work on new business ideas that you want to incorporate with the current organization or choose to just enjoy the benefits of success or venture into other interests or hobbies. Additional financial resources will also be necessary if you intend to expand the business more.

4. The Takeoff. If you decide to expand, financing and delegation will be your main concerns. It will take a competent and expert management system to be able to handle growth and the every-changing business environment. Note that with the evolving business climate in the market, change is inevitable—and your business’s inability to cope and adjust to it can sometimes be overwhelming.
   
   As a major point in the pattern of business growth, it is in this stage when you have to decide whether you plan to sell your company for a remarkable profit or be a big business name. To do this, it is critical that you know your own strengths and weaknesses, your positive attributes, and your limitations so you can figure out if you really have what it takes to go further and expand.

5. The Maturity. One major challenge that you will have to face head on when managing a mature business is taking hold of your enormous financial resources, and at this point you may already have a whole department handling just this. Finally, you will have to be as flexible and agile as you can to be able to quickly adapt with the ever-changing environment of a competitive market.

StateAndFederalBids is home to the most comprehensive collection of all levels of government bidding opportunities—state, local, and federal—offered at the market's easiest and most affordable subscription service packages.

Women in Business: Getting Startup Funds (Even with Bad Credit)

Good news: Funding for women planning to start up a small business is readily available.

Bad news: It’s not that easy to get.

Most of these funding sources for women business owners come in the form of loans, and this can be very tough to avail of especially for those with a bad credit standing. Fortunately however there are still ways through which women can avail of these resources even with their bad credit. And one effective way is by being able to prove that you have what it takes to run the business.

The Peer-to-Peer Lending System

The peer-to-peer lending system is ideal for those women who only need a small amount of money (less than $10,000) to get started with the business. The process requires you to talk about your business and your qualifications to manage and run it. Prospective investors will look into your story, check its credibility, and decide on how much percentage of the money will they offer for a loan. Here, having a low credit means higher risk, so your interest rate will be higher as well.

Soliciting help from family and friends can be formally done through peer-to-peer lending. Here, they can lend you some funds that you can use to start up your business while they earn interest from the transaction, which will all be done under an intermediary online site.

The Venture Capitalists and Angel Investors

Venture capitalists and angel investors are those individuals or organizations that are ready to give you the financial capital that you need to start up your business, but they will need to have some control over a portion of your company and its profits. This system is ideal for those looking for a significantly large amount of money like around $100,000 to $1 million.

These individuals or organizations would not be bothered about your personal credit rating. Rather, they would examine your business plan, your capacity to run the business, your experience as well as those of your staff and personnel. Normally, these capitalists will look for those business ventures in the technology industry where the potential for enormous profits are high.

Business Grants and Loans for Women

Many nonprofit organizations grant help to women who would like to start up a business. The competition is stiff, and the grants are normally designated for disadvantaged women or those coming from low-income regions. You may increase your chances of winning a grant if you can hire the services of a professional grant writer for this.

Trying to get a loan with a low credit score can prove to be a daunting task. If you approach a lending company that offer SBA loans, which are normally backed by the government, then you have higher chances of getting an approval. But your best chance would be to get in touch with organizations that really specialize in helping women fund up their businesses and will not bother lending some funds despite your low credit. 

StateAndFederalBids is the one-stop solution for all those start-up businesses seeking to be part of and grow in the government bidding market. We help you find the right opportunities that your business needs.

Being a Small Business Entrepreneur: Are You Up for the Challenge?

Regardless how lucrative it may sound, starting a business is definitely not a walk in the park. It takes a lot of meticulous planning, emotional and financial preparation, and a full commitment to devote as much of your time and effort to eventually realize your goals. The U.S. Small Business Administration reports that only half of new businesses survive five years after conceptualization, while only 35% stay afloat after ten years or more.

The Gallup Small Business Index/Wells Fargo surveyed owners of small businesses on how they fared in their journey toward small business entrepreneurship, and here are their opinions and advice for those who are aspiring to get into small business entrepreneurship.

• One of the first few concrete goals that every new business owner must accomplish is creating a solid business plan. As a foundation of your endeavor, your business plan should be the product of a good research about your market, the industry, your clients, your competitors, and every important aspect of the business.

• It’s no surprise that one of the biggest challenges of starting a business is the need to come up with the initial investment, which is almost always likely to be a large sum of money. The survey showed that the most popular source of funds used when opening businesses come from personal savings. Other sources include loans and credits and some help from families and friends.
• If there’s a business plan, it follows that you also need to come up with a financial plan that will help you look clearly and examine your startup costs.  Get help from a professional financial advisor on reviewing your financial documents to ensure that you are really financially capable with this undertaking and get it through for the first few years.

• If you’re looking at getting a credit or a loan, take the time to really understand what your business has to come up with and what it needs to do to qualify and be in a safe position for a secured financing plan.
• While many small business owners have the tendency to underestimate the time and effort that they need to commit to launch a new business, they should be made aware of how amazingly rewarding it is to own a small business. It is therefore critical for one to first identify his reasons for starting the businesses and to determine the opportunities it can bring.

• Know that starting a business does not guarantee immediate profit, so it is very important to make sure that one has the right reserved resources to cover the initial resources. New business owners are generally advised to be able to come up with enough working capital to cover all costs and expenses for at least a year.

Obviously, starting a small business can be a daunting task with the many challenges one has to face, but it’s a well-known fact that it could be equally rewarding in the long run. So before taking those first steps, make sure to have the right plans on hand. Give it all the time and effort you can, and you’re sure to find reap your own rewards as well.


The market's leading provider of state, local, and federal government bids, StateAndFederalBids provides business intelligence solutions that enable clients to strongly compete in the government contracting industry.

How to Come Up with the Best Price for Your Government Bid

Coming up with the best price for the product or service that you want to offer to the government means creating a balance in trying to generate profit for your business while still making a competitive bid. And when it comes to deciding on how to price your bid on the government contracting business, there is no question that you should be more knowledgeable on this than other people would be.

Take note that with the great variety of businesses out there and an equally vast number of pricing methods, the smartest thing to do would be to remain as competitive as you can in your target market. Determining the right price for your bid means having to consider the following factors:

• The Price History of a Product (or Service). Obtain the price history of the item or product from the buying government agency. You can ask help from the Point of Contact noted in the contract or from the Procurement Technical Assistance Center. You may also get in touch with the contracting officer who can provide you with previous contract numbers so you can check the figures on those documents. Be sure however that you’re looking at the same contract statements so you get a more accurate price comparison.
• Bidding Costs and Expenses. While other contracting opportunities are simple and inexpensive, other larger contracts can be more arduous and time-consuming—and therefore more costly. Here, it helps to follow the rule of thumb: an estimated cost of putting together a government bid can run around 3% to 4% from a proposed contract’s value. Also, be sure to have your business ready to handle this cost.
• Quality and Certification Requirements. Be aware of all the necessary licenses, certifications, and acknowledgments and know if acquiring them would mean paying more so you will eliminate any surprise expenses all the way.
• Other Special Requirements. Be sure to get all the requirements that the buyer needs. Do not bank on just a percentage of the cost of the item to cover for additional requirements like packaging, transporting, etc., as they can sometimes be more costly than you think, and can eat it up on your supposedly profit.
• Overheads and Profit. Remember that while you always have the free reign on inputting as much profit as you like, you have to win the contract first before you can finally enjoy that profit you have in mind—and the government contract bidding process is one tough and competitive arena. Take note too that while having your price cover all your overhead costs appear simple and basic, there’s still this pricing factor that many small businesses still cannot seem to get right: if you cannot come up with the right cost information, then you’d have difficulty making the right decisions for your business, correctly bid on a contract, and be ultimately competitive.

StateAndFederalBids gives you visibility into government partner activities and contract awards as well as a comprehensive archive of past procurement activities complete with buyer behavior, pricing, and other relevant variables enabling you to market and grow your business's government opportunities.