SMB Business Stages & How to Move Forward
Before we explore each stage of small business growth, it’s important to understand a core concept that influences them all: The E Myth-Revisited by Michael E. Gerber. Short for the “Entrepreneurial Myth,” Gerber’s book reveals a fundamental misunderstanding about starting and growing a business. The myth? That great technicians—bakers, designers, consultants—make great business owners. In reality, most small business failures come from founders working in the business rather than on it.
Gerber explains that every business owner must learn to balance three personalities:
- The Technician: Focused on the work and doing it well
- The Manager: Focused on order, systems, and predictability
- The Entrepreneur: Focused on vision, growth, and innovation
True success comes from building systems that let the business run independently of the founder. This philosophy is woven throughout the five growth stages—and it’s where many businesses get stuck unless they shift their mindset. At each level, we’ll show how these insights apply and how On-Target! helps guide that transformation.
Stage 1: The Dream
This is where it all begins. You have an idea, a spark, and a drive to create something of your own. At this stage, most small business owners are bootstrapping with limited capital, navigating legal paperwork, and trying to figure out how to attract their first customers. The challenge? Everything is new, and everything is urgent.
Typical Struggles:
- Not knowing where to start
- Lack of funding and financial planning
- Limited access to expert advice or mentorship
- Building brand trust from zero
- Time management and burnout
The E Myth Insight: Most entrepreneurs start here as technicians—people skilled at their craft, not necessarily business builders. But working in the business instead of on the business keeps many stuck at this stage.
Tactics to Move Forward:
- Define Your Unique Value Proposition (UVP): You need to know exactly what makes your business different. Without a compelling reason for someone to choose you, it’s hard to gain traction.
- Build a Lean MVP (Minimum Viable Product): Don’t wait for perfection—get something out into the market to test, learn, and adjust.
- Get Online, Fast: A basic but professional website, Google Business Profile, and social media presence are critical in today’s digital-first world.
- Track Your Spend: Use basic accounting tools to understand cash flow, expenses, and startup costs.
How On-Target! Helps: We help startups get to market faster with foundational marketing strategies that don’t drain your budget. From launching that first website to crafting messaging that connects emotionally, we build brand foundations that scale. We know how to stretch a dollar and make every impression count.
Stage 2: The Hustle
You’ve launched. You’re working long days (and nights), handling sales, service, billing, and maybe even janitorial duties. It’s pure grit—and it’s working. But now you need more consistency and a better way to manage time and customer relationships.
Typical Struggles:
- Wearing too many hats
- Lack of repeatable systems and workflows
- Poor work-life balance
- Inconsistent cash flow
- Difficulty staying top of mind with customers
The E Myth Insight: This is where the technician mindset begins to clash with the realities of running a business. Without documented systems, the business relies entirely on the founder’s presence and energy, which limits growth.
Tactics to Move Forward:
- Implement a CRM: Centralize customer data to stay on top of leads and nurture future business.
- Build Out Your Brand Identity: Solidify visuals, tone, and messaging to create consistency across all channels.
- Introduce Content Marketing: Start blogging, emailing, and posting regularly to stay top-of-mind with your audience.
- Track Conversions: Understand which tactics are bringing in revenue. Invest more in what works.
How On-Target! Helps: We help growing SMBs stop spinning plates and start building systems. From setting up CRM pipelines to developing consistent branded content and automated follow-ups, we turn hustle into momentum. Our marketing audits and performance reports show you what’s working—and where to double down.
Stage 3: The Build
You’re growing. You’re hiring and trying to keep up with demand. But growth can be messy if your operations, marketing, and finances aren’t aligned.
Typical Struggles:
- Managing growing teams and delegation
- Scaling operations while maintaining quality
- Juggling customer acquisition with fulfillment
- Rising overhead and tighter margins
- Lack of strategic marketing planning
The E Myth Insight: True business maturity comes from building replicable systems that others can manage. Entrepreneurs must shift from being doers to becoming managers and visionaries who work on the business, not in it.
Tactics to Move Forward:
- Operationalize Your Marketing: Standardize your lead generation, nurture, and retention strategies.
- Paid Media Strategy: It’s time to amplify your message through Google Ads, paid social, or retargeting.
- Measure ROI: Shift from vanity metrics to performance marketing. Know the cost per lead and customer acquisition cost.
- Scale Content: Consider webinars, whitepapers, or lead magnets to establish authority.
How On-Target! Helps: We bring structure to your scaling. Our team acts like your outsourced marketing department—building campaigns that run smoothly, report cleanly, and grow reliably. We set up analytics dashboards, manage ad spend strategically, and help you craft content that builds brand equity while driving conversions.
Stage 4: The Brand
You’ve arrived at recognition. People know your name. You’ve earned a reputation. But now, the stakes are higher. Your brand is a promise—and it must be protected and evolved.
Typical Struggles:
- Maintaining relevance in a changing market
- Navigating increased competition
- Managing brand consistency across channels and teams
- Scaling without losing the personal touch
- Preventing customer churn
The E Myth Insight: The business must now operate like a franchise—even if it’s not one. Systems should be documented and replicable. The founder’s vision needs to be institutionalized across departments.
Tactics to Move Forward:
- Brand Refresh or Expansion: Update visual identity and brand messaging to reflect your current size, values, and ambitions.
- Community Engagement: Position your brand as a community leader. Sponsor local events, join industry conversations.
- Customer Experience (CX) Strategy: Ensure every touchpoint is seamless, from website to email to support.
- Protect Your Reputation: Proactively manage reviews, press, and employee culture.
How On-Target! Helps: We turn respected businesses into market leaders. Our branding team ensures your identity is current, compelling, and competitive. We help you humanize your brand across every channel, reinforce your values in digital campaigns, and create standout customer experiences that foster loyalty and love.
Stage 5: The Legacy
You’ve built something lasting. Now it’s about legacy—succession planning, giving back, and preserving the spirit of your business as it moves into its next chapter.
Typical Struggles:
- Planning for succession or exit strategy
- Transferring leadership without losing vision
- Maintaining culture as the company matures
- Preparing finances and operations for long-term sustainability
- Staying inspired as your role evolves
The E Myth Insight: The entrepreneur must now become the architect of the future. This stage requires the ultimate act of working on the business: ensuring it can thrive without you. That’s the final proof of a scalable, system-dependent enterprise.
Tactics to Move Forward:
- Document Your Systems: Build standard operating procedures (SOPs) for marketing, sales, and customer care.
- Elevate Thought Leadership: Speak at conferences, publish insights, and position your brand as a voice of wisdom.
- Succession Planning: Begin grooming future leaders or preparing for a sale.
- Scale Purposefully: Choose expansion or partnerships that align with your vision and values.
How On-Target! Helps: We help businesses build enduring impact. Our legacy marketing work includes executive brand positioning, documenting internal marketing knowledge, and translating founder values into evergreen assets. Whether you’re preparing for a graceful exit or just ensuring the business can thrive without you, we’re your trusted guide for long-term success.
Breaking Through the Glass Ceiling at Every Stage
No matter where you are on your journey, there’s a moment where things feel stuck. Growth slows, ideas dry up, and frustration builds. That’s the glass ceiling—and it’s different for every stage. But every stage has a way forward.
At On-Target!, we help you find it. With honest strategy, expert execution, and marketing that connects at a human level, we give you the tools to break through and build something bigger.
Let’s move your business forward—together.
