Churchill & Lewis Growth Stage Model

The Churchill & Lewis Growth Stage Model is a useful framework that helps analyse what particular stage of growth a small firm is at, and the issues and problems that they need to be aware of – now as well as in the future as the business grows.

The five stages of small business growth (from the HBR paper)

• Stage 1: Existence – Validation of idea, gaining enough customers
• Stage 2: Survival – Improve customer service, focus on profitability and growth
• Stage 3a: Success – Size and complexity of the firm grows rapidly. Owners face dilemma whether to exploit the company’s accomplishment or keep the company stable, securing funding for expansion
• Stage 4: Take Off – How to scale operations
• Stage 5: Maturity – Maintain customer service and entrepreneurial spirit while scaling. Get rid of inefficiencies.

Here’s a video that provides an overview of the Churchill & Lewis Model:

Useful Links

The Five Stages of Small Business Growth: Paper on the Churchill & Lewis Model

Churchill and Lewis Growth Model for Small Bussiness