Stage III: Success. The business is now economically healthy, and the owners are considering whether
to leverage the company for growth or consider the company as a means of support for them as they
disengage from the company. There are two tracks within the success stage. The first track is
the success-growth substage, where the small business owner pulls all the company resources together
and risks them all in financing growth. Systems are installed with forthcoming needs in mind. Operational
planning focuses on budgets. Strategic planning is extensive, and the owner is deeply involved. The
management style is functional, but the owner is active in all phases of the company’s business. The
second track is the success-disengagement substage, where managers take over the owner’s operational
duties, and the strategy focuses on maintaining the status quo. Cash is plentiful, so the company should be
able to maintain itself indefinitely, barring external environmental changes. The owners benefit
indefinitely from the positive cash flow or prepare for a sale or a merger. The first professional managers
are hired, and basic financial, marketing, and production systems are in place.
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