Phase Two: Growth

No matter how many generations step into the leadership role of the business, the growth phase is one of the most exciting times. Sales are robust during this phase and the family is starting to separate duties, with some members handling sales, some involved in operations management, and some perhaps with research and development. At this point there is usually a shift from looking at short term goals to considering the long term objectives and discussing these future plans with family members.  Changes are taking place as the family deals with more complex situations such as staffing issues that require formal Human Resource decisions, serving customers who may be around the corner or across the globe, and technology that is constantly changing and becoming more sophisticated.
At this stage, the family often enters into serious discussions on how to manage their exploding growth, maintain profitability, minimize taxes, and monitor operations for greater efficiency.