Unlike big corporates, SMEs cannot carry a layer of middle management or the systems used by them.

The concept is alien; the cost prohibitive; and 
the actions of the typical manager are counter-productive in many entrepreneurial environments.

In the early stages of their evolution, SMEs don’t need organisation because they compete through offering a compelling product, their proximity to the customer and quicker decision making.

As SMEs grow, however, they increasingly
 need a set of coherent processes in order to remain competitive, maintain a winning culture and consistently deliver their promises to their customers.

Evolution of Business

The chart below illustrates the evolution of a business.   We see six principal stages in the development of a SME.

The early stages of a business are focused on building a right to Exist, proving its business model and, frantically, gaining sufficient customers to Survive.

We believe this is followed by Sustain, where it consolidates its position and customer base, before advancing into the stages of Success.

From there, the owners reach a series of junctions where they need to decide whether to take the risk of going for further growth or enjoying the profits of their previous endeavour.

This decision is primarily determined by:

• the nature of their product
• the capacity of and confidence in their organisation