Find YOUR Business Growth Stage

How to Transition from Entrepreneurial Firm to Professionally Managed Business

All organizations go through different stages of growth, from startup through maturity and exit. Businesses must accomplish the key development goals of each stage to proceed to the next. Each has a unique developmental focus, and can be classified by sales revenue (varied depending upon whether your firm is a service firm or a manufacturing concern).

Which Stage is YOUR Business In?

Which Stage is YOUR Business In?


New enterprises need to focus on creating their products and services, while understanding their market, and planning and executing their marketing strategies.


After completing the start up stage, the GROWTH stage presents new challenges and problems. Increasing sales demand more resources (financing, people, space, equipment) and better operational systems (production, accounting, payables, information) to be able to deliver. It’s all about infrastructure.

This is where organizations transition
 from Entrepreneurially-Run to Professionally Managed Firms


Transitioning to a professionally-managed firm happens somewhere after a service firm has reached about $3M in revenue ($10M for manufacturing companies). Recognizing a need for better-defined goals, plans and controls, management practices need to become more formal. The leader who worked IN the business gives way to the need for one who is capable of planning, administration, leadership, and control working ON the business.


Corporate culture is a primary focus at organizational maturity – this is critical to support the professional systems that were developed in the prior stage. It doesn’t mean that organizations had no culture before, but rather that they take on new, increased importance to continue their considerable growth.

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