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3-Stages of a Business Owner – How to upgrade from one Stage to another?

Every small business owner like solopreneurs or a start-up team of 5 or less have three distinct phases they go through. Here I am going to discuss those 3 stages and how to upgrade from one stage to another.

Are you a Business Owner who is involved in every big & small act of your business? If you are doing every task from following up leads to taking orders, from assigned work to tracking the performance, from marketing to sales, etc. then, you are doing Micro-management, not Macro-management.

With this Micro-management work process, you are just trying to survive and not be able to scale your business.

As per the book E-Myth, written by Michael E Gerber, a Business Man goes through 3-Stages:

What are the 3-Stages of a Business Owner?

For detailed insights you can refer to the Video: 3 Stages of a Business Man by Kewal Kishan – Technology Coach.

  1. Stage One: Technician
  2. Stage Two: Manager
  3. Stage Three: Entrepreneur

In this blog, I will explain to you these 3-Stages and how to upgrade from one stage to another.

Stage One: Technician

This the early stage of a Business Owner, where you work on the idea and make a plan to implement it. The Business Owner identifies every little technical detail of the business and works on the Business operations. You experiment, do research, and handle everything right from the Marketing to Delivery of Product/Service.

In this stage, the business makes little money and that money goes into setting up the upcoming requirements.

Here, you are learning the core processes of your business to upgrade into the Managerial Stage.

Stage Two: Manager

This is the second stage of the Business Owner. At this stage, you evolve from the manual processes and figure out the system and tools required to Automate the Business. With Business Automation, the Business Owner gets the time to manage the team, business operations, clients, and orders.

In the Managerial Stage, you start hiring people to share your responsibilities so that, you can scale and grow. You start defining processes and try to automate each and every process using technology.

At this stage, the Business starts making some profit.

Here, you are building your technical skills and improving the time management to upgrade into the third stage: Entrepreneur.

Stage Three: Entrepreneur

This is the third stage of the Business Owner, where you upgrade yourself as an Entrepreneur. At this stage, you have set defined processes, systems and teams. Now, you are focused on your 3-months or 6-months plan and make strategies to achieve it.

In the Entrepreneur stage, you try to make processes more efficient and work on improving team productivity. You can read our Blog on How to 10X your Team Productivity? or you can also refer to the Video by Kewal Kishan – Technology Coach.

You shift yourself from Managerial Tasks to Growth-oriented Tasks. Instead of handling clients or track projects or teams, you invest time in planning your Business and hitting the opportunities to scale it.

If you want to start and grow a profitable business for the long-term, you need to master these three stages gradually. If you want to FastTrack these stages, then, introduce Business Automation to your work process.

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