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Stages of Development

Success doesn’t happen overnight. Great companies become successful by understanding who they are, what they are, where they are, and where they want to go.  

Founders with a vision understand that success doesn’t happen overnight. After working with thousands of growing companies, we’ve recognized five distinct Stages of Development a founder and their growing team must go through on their way to building a successful company.

The Stages of Development is are our foundational framework for measuring a company’s progress as it grows. When paired with the Core Competencies, the stages are central to a system that has worked for thousands of successful small and midsize businesses.

There are Five Stages of Development a company goes through.

The focus at each stage represents the primary goal, stated or unstated, of the business at that time. This goal drives the organization’s activity. While there’s no set timeline for each stage, our framework recommends durations based on our experience as coaches and company builders.

What Stage of Development is your business currently in? 

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Learn More about the Stages:

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5 Stages of Development

A sketched diagram showing five stages of growth: Start, Build, Grow, Scale, and Legacy, represented as stacked blocks with arrows indicating progression from one stage to the next.

Key Resources & Tools

Stage 1: Start

Having found some success and a place in the market, a Stage 2 business prioritizes what works and reinforces its core features. It seeks to prove, stabilize, and endure.

Stage 2: Build

Stage 1 businesses are usually new, and in the startup environment, few things (structure, process, market fit) are established. It’s all about proving product-market fit and keeping the lights on.

Stage 3: Grow

A Stage 3 business has implemented a more intentional approach to work, and it increasingly adds expertise. The main focus is developing a clear path to long-term viability.

Stage 4: Scale

Organized and mostly expert, a Stage 4 company no longer relies on constant guidance or involvement from its founder. With its position secure, it’s able to emphasize growth and sustainability.

Stage 5: Exit

A Stage 5 company is excellent comprehensively, from its aligned people to its processes and data integration. A successful structure is in place, and the founder is free to completely focus on where the company needs to be in 5–10 years. Such attributes allow the company to build wisely for the future.

Next Steps

For those ready to take action, consider these added actionable steps: