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Early Startup

In this stage the main problems of the business are obtaining customers and delivering the product or service contracted for. The organization is a simple one—the owner does everything and directly supervises subordinates, who should be of at least average competence.

Importance of this Stage

In reaching this stage, the business has demonstrated that it is a workable business entity. It has enough customers and satisfies them sufficiently with its products or services to keep them. The key problem thus shifts from mere existence to the relationship between revenues and expenses. The organization is still simple. The company may have a limited number of employees supervised by a sales manager or a general foreman. Neither of them makes major decisions independently, but instead carries out the rather well-defined orders of the owner.

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