The Seven Stages of Growth for Entrepreneurs
A Smarter Approach to Scaling Your Business
At LT Results, we’ve spent years guiding entrepreneurs and business leaders through the complexities of growth. While many business models solely focus on revenue, the Seven Stages of Growth framework takes a different approach. Developed through extensive research and applied to thousands of companies, the Seven Stages of Growth approach is about understanding the complexity of people in your organization. You can ensure sustainable success by identifying the challenges at each stage and adapting your leadership based on your people.
Why the Seven Stages of Growth Matter
Most businesses assume that growth is about increasing revenue, but the real challenge comes from effectively scaling people, processes, and leadership. Through extensive training, Liz Parker was introduced to the Seven Stages of Growth framework and quickly realized its value. “It was like discovering everything we’d been missing during the growth process,” Liz says. “It’s a roadmap for anyone who wants to grow their startup.”
The framework identifies seven distinct stages of business growth based on the number of employees rather than revenue. Each stage brings unique challenges, risks, and leadership shifts that, if unaddressed, can create significant roadblocks.
The real challenge is people complexity, not revenue
One of the biggest misconceptions in business growth is that complexity comes from revenue. In reality, it’s people who create complexity. Imagine a family with one child versus five—it’s not about financial resources but managing schedules, responsibilities, and relationships. The same principle applies to business.
The leadership style must evolve as a company grows from 1-10 employees to 20, 50, or 200. Entrepreneurs who thrive in the startup phase often struggle in later stages because they try to apply the same leadership tactics instead of adapting to new challenges.
Key Challenges at Different Growth Stages
Stage 1 (Startup – 1-10 employees): The CEO is the driving force, risk is high, and survival is the focus.
Stage 2 (Ramp Up – 11-19 employees): A growth mindset kicks in, and responsibilities shift beyond the founder.
Stage 3 (Delegate – 20-34 employees): Leaders must learn to delegate effectively—many companies struggle with this transition.
Stage 4 (Professional – 35-57 employees): Systems and leadership layers become essential. Hiring managers who “have been there” is critical.
Stage 5 (Integration – 58-95 employees): The business must focus on team collaboration, efficiency, and alignment.
Stage 6 (Strategic – 96-160 employees): Multi-year strategic planning becomes necessary, and leadership must focus on culture and competitive positioning.
Stage 7 (Visionary – 161-500 employees): The company must act like a well-oiled machine, with the CEO focusing on long-term vision rather than daily operations.
Every transition between these stages presents “flood zones” (overload of activity) and “wind tunnels” (letting go of outdated methodologies). Companies that don’t recognize these phases face bottlenecks, leadership breakdowns, or high turnover.
Aligning Your Growth with the Right Priorities
Growth is ultimately about achieving the right priorities at the right time. That’s where annual planning comes in. Many businesses fail because they don’t take the time to realign their goals each year based on their current stage.
At LT Results, we guide companies through this process by helping them:
Identify their current stage of growth and the challenges ahead.
Prioritize their top five business challenges for the year.
Create a plan that aligns leadership, teams, and resources with those priorities.
One of the biggest pitfalls companies face? Trying to do too much at once. As Liz advises, “Focus on the right thing right now. Entrepreneurs naturally want to chase opportunities, but if you don’t understand your stage of growth, you’ll waste energy on the wrong things.”
Being the Leader Your Business Needs at Each Stage
A crucial aspect of the Seven Stages of Growth model is recognizing how leadership must evolve. The same CEO who thrives in the startup phase may struggle in later stages if they don’t shift their approach. Emotional intelligence becomes critical. Leaders must be adaptable, self-aware, and able to balance their vision with execution.
The key takeaway for entrepreneurs struggling with growth planning is that they don’t have to figure it all out alone. By understanding their stage of growth and aligning their leadership approach with where their company is today, not where they wish it were, they can navigate the path to long-term success with greater confidence and less stress.
Apply the Seven Stages of Growth to Your Business
If you’re ready to take the guesswork out of growing your business, LT Results can help you pinpoint your stage, identify upcoming challenges, and build a clear action plan. Growth is never one-size-fits-all, but with the proper roadmap, you can confidently scale smarter and lead.
Ready to learn more? Let’s talk about where your company is today and where it’s headed next!
