You understand your business better than anyone but how do you stack up against these businesses? We surveyed more than 1,300 small and mid-size business owners across the nation to create our business life stage report. Here's the complete report outlining the key characteristics of each business life stage: starting up, growing, maturing, re-inventing, surviving or transitioning.

1. THE SIX BUSINESS
LIFE STAGES

2. Table of Contents
2
Page
Research Method 3
Executive Summary 4
Business Life Stage Predictors & Progression 6
Starting Up Businesses 8
Growing Businesses 12
Maturing Businesses 16
Re-Inventing Businesses 20
Surviving Businesses 24
Transitioning Businesses 29
Conclusions 33

3. Representative of Middle
Market nationwide
Nationally Representative Sample
of Business Owners
3
• 1,366 Interviews
• Businesses with 5-499 employees
• Owners, C-Suite, Key decision makers
• Phone  Internet interviews
• Fielded January 2016
Research Method

4. Businesses, like people, go through different life stages. Our latest research, among business owners of companies
with 5-499 employees, identified six distinct business phases: Starting Up (3% of SMBs), Growing (29%), Maturing
(36%), Re-Inventing (15%), Surviving (12%), and Transitioning (5%).
Starting Up and Growing. The youngest companies are those that are Starting Up and Growing. Sales growth rates
among these businesses are strong, with more than half experiencing annual sales growth of 11% or higher. These
business owners are the most confident in the future success of their businesses. They are enthusiastic since they
are ‘building something’ and ‘bringing their ideas to life.’ For them, everything is possible!
Maturing. Maturing businesses are well established and have arrived at a state where the business is steady and
stable. These companies experience sales growth, although to a lesser degree than the Starting Up and Growing
businesses. Business owners running these companies are the least concerned about customer acquisition and
retention. They don’t need to be; the company is a well-oiled machine, that is basically running itself.
For many businesses, everything continues running smoothly; but about one-third are hit by some type of disruption.
They might experience product relevance declines, or intensified competition, or perhaps something goes awry with
the U.S. economy and demand for their particular products and services wane. Others simply decide they are ready
to move on…either to retire, or to start a different business.
Re-Inventing. Re-Inventing businesses are established companies that due to declining sales and increased
competition have been forced, out of necessity, to do something different. It’s as if the rug got pulled out from under
them, and they are working to regain their footing. They are in pursuit with a vengeance. Re-Inventing owners are
using technology, the latest marketing vehicles, specific targeting, and hot issues (e.g., sustainability) to move their
companies forward.
Executive Summary
4

5. Surviving. Surviving businesses, too, got hit by a downturn. Yet unlike, Re-Inventing business owners, they are at a
loss about what to do. They are the most worried…about the economy, their customer base, and the upcoming
presidential election (the majority are Republicans). Nearly as many who are excited about new technology for their
business are overwhelmed by it, and say that it is hard to keep up with. They primarily use traditional marketing
approaches. Using a newer technology, like cloud computing, is not yet on their radar. They have the lowest incomes
and education levels, and with nearly two-thirds concerned that they don’t have enough money to retire, getting out is
not really an option.
Transitioning. Even though Transitioning business owners are the oldest of any life stage segment (average age
58), they are not necessarily selling off or passing the business along in order to retire. Most are waiting to retire
because they like working, and nearly 20% are ’transitioning’ in order to start another business or to pursue a
different career. Yet, they are clearly winding their current business down. Four out of ten have a succession plan in
place, and one-third have stopped all marketing activity. The big question for them is, what’s next?
Executive Summary (Cont’d)
5

6. Business Life Stage Predictors
6
74%
82%
77%
63%
37%
51%
57%
50%
36%
29%
14%
31%
Starting Up Growing Maturing Re-Inventing Surviving Transitioning
Any Sales Growth
11% or Higher
Sales Growth
Years in Business
(average)
13.7 years 23.5 years 30.4 years 33.3 years 31.0 years 27.7 years
Higher Sales Growth
& Younger Businesses
Lower Sales Growth
& Older Businesses
Sales growth and the number of years a company has been in business are key predictors
of business life stage.

7. Business Life Stage Progression
7
Starting Up
Businesses
3%
103,000
businesses
Growing
Businesses
29%
996,000
businesses
Maturing
Businesses
36%
1.2M businesses
Sales
Growth
Decline
Economic
Downturn
Intensified
Competition
Re-Inventing Businesses
15%, 519,000 businesses
Surviving Businesses
12%, 415,000 businesses
Transitioning
Businesses
5%
173,000 businesses
Base: Businesses with 5-499 Employees

8. 8
STARTING UP BUSINESSES
Recently started the business, still learning,
getting things in place

9. Starting Up Businesses (3% of SMB Owners)
9
Businesses that are in the ‘Starting Up’ segment account for a small share of small and mid-sized
businesses with 5-499 employees. These businesses are riding the strong upswing of sales growth
as their companies successfully get off the ground…with 57% experiencing annual sales increases
of 11% or more. And Starting Up business owners are highly confident their companies will grow
even more over the next 24 months. To ensure the momentum continues, many are accessing
business loans, and they are also exploring non-local geographies to help drive sales.
Average Age
47 v. 53 for all other SMBs; 35%
under 40
Years in Business (avg) 13.7 years, 55% under 10 years
# of Employees (avg) 13
% with Sales Growth 74%, 11%+…57%
Women-Owned 47% v. 30% for all other SMBs
Minority-Owned 29% v. 11% for all other SMBs
Starting Up business owners are
highly confident that their business
success and growth will continue.
62%
47%
Starting Up Business
Owners
All Other SMBs
% Extremely/Very Confident in Success of
Company Next 24 Months
Key Characteristics

10. To ensure ongoing momentum, many Starting Up businesses are
accessing loans; few have implemented standard business services
10
35%
61%
51%
73%
15%
27%
35%
41%
Employee benefits services
Commercial insurance services
Payroll services
Accountant, CPA, tax prep
service
Starting Up Business Owners All Other SMBs
Many Starting Up SMBs have yet to
put in place general business
services.
Used Past Year
For Starting Up SMBs, getting access to
capital is top of mind. Four out of ten have
recently applied for loans.
22%
22%
20%
23%
33%
35%
32%
43%
High LOC critical factor when
applying for new credit card
Very concerned about having
access to capital, business
loans or credit
Use business loan funds to
expand operations
Applied for business loan past 2
years
Starting Up Business Owners All Other SMBs

11. Starting up businesses are exploring non-local geographies to help
drive sales; Social media is a channel they leverage
11
Social Media is an important marketing
tool for Starting Up businesses.
33%
28%
24%
40%
52%
55%
Use Social Media to generate
leads
Generate revenue from
Social Media
Post at least several
times/week to Social Media
for business
Starting Up Business Owners All Other SMBs
Starting Up SMBs are generating sales
both nationally & internationally, as well as
locally. They travel often for business to
keep their non-local operations going.
Starting Up
Business Owners All Other SMBs
Generate Sales:
Locally
89% 92%
Nationally 76 61
Internationally 49 24
Travel for business
once a month+
64 31
% of time work out
of the office
40 20

12. 12
GROWING BUSINESSES
Increasing sales, employees, locations or
knowledge

13. Growing Businesses (28% of SMB Owners)
13
More than one-fourth of U.S. businesses are in the Growing segment. These businesses have all
cylinders firing to keep their upward sales momentum on track, and it’s working! Growing business
owners are both passionate and driven. They started their companies because they wanted to bring
an idea to life, and they love making that happen. Growing business owners work the hardest of any
segment, and use leading technologies to move their companies forward, as well as a host of
traditional and new lead generation tools.
Average Age 51 v. 54 for all other SMBs
Years in Business (avg) 23.5 years, 26% under 10 years
# of Employees (avg) 29
% with Sales Growth 82%; 11%+…50%
Women-Owned 34% v. 29% for all other SMBs
Work 60+ Hours per
Week
37% v. 29% for all other SMBs
Household Income (avg)
$202K v. $178K for all other
SMBs
Growing business owners are highly
confident in the ongoing success of their
companies.
63%
41%
Growing Business
Owners
All Other SMBs
% Extremely/Very Confident in Success of
Company Next 24 Months
Key Characteristics

14. Growing business owners want to build something & bring ideas
to life; they use multiple lead generation sources
14
Growing business owners started their
companies to build something and bring an
idea to life.
They use multiple sources, both
traditional and digital, to drive leads and
the business forward.
65%
64%
70%
73%
76%
84%
Get to do what I love
Bring my ideas to life
Build something
Growing Business Owners All Other SMBs
Reasons Started Business
38%
35%
27%
24%
31% 30%
22% 20%
Social media Website/email
newsletter
registrations
Event
sponsorships
Direct mail
Growing Business Owners All Other SMBs
Sources Used for Driving New Business Leads

15. Growing business owners are excited about new technologies and
use more cutting edge tools (like the Cloud) than other SMBs
15
Growing SMBs are leveraging
leading technologies to continue
their business growth.
Growing business owners’ excitement for
new technology far exceeds the overwhelm of
trying to keep up with it.
71%
61%
38%
46%
Growing Business
Owners
All Other SMBs
Excited about new technology
Hard to keep up with technology
Used Past Year:
Growing Business
Owners
All Other
SMBs
Company Website 79% 71
Tablet 52 47
Cloud services 40 30
Mobile/Internet
payment devices
35 29
% Strongly Agree
+33%pt gap +15%pt gap

16. 16
Settled, established, stable, business
is steady
MATURING BUSINESSES

17. Maturing Businesses (37% of SMB Owners)
17
Over one-third of businesses in the U.S. are in the 'Maturing' business life stage. These companies
are settled, established and able to generate sales and sales growth without the stepped-up
marketing, worries and concerted efforts found among other businesses. Maturing business owners
have 'arrived.' Their companies are like well-oiled machines that have an ingrained rhythm and
momentum all their own. They tend to be locally-focused and are confident in the future success of
their companies.
Average Age 54 v. 52 for all other SMBs
Years in Business (avg) 30.4 years
# of Employees (avg) 23
% with Sales Growth 77%, 11%+…36%
White Collar Industries 64%
Household Income (avg) $189K v. $183K for all other SMBs
Maturing business owners are fairly confident in their
future success and are less concerned about their
marketing efforts than other SMBs.
Key Characteristics
54%
56%
45%
43%
45%
50%
Maintaining existing customer
base
Being able to attract new
customers
Extremely/Very Confident in
future business success
Maturing Business Owners All Other SMBs
% Very Concerned

18. Maturing business owners are very active in their communities;
their local engagement drives sales and generates business leads
18
Maturing business owners run businesses with a
strong local focus. They are less inclined to
generate sales nationally and internationally.
93%
56%
20%
91%
64%
27%
Locally Nationally Internationally
Generate Sales…
Maturing Business Owners All Other SMBs
Engage in public, community activities (e.g., vote,
attend town meetings, sign petitions):
83% Maturing Business Owners
76% All Other SMBs
Obtain business leads primarily via word of mouth:
79% Maturing Business Owners
74% All Other SMBs
They are active in their communities
and generate business leads primarily
via word of mouth.

19. With their businesses working well, maturing business owners are
slower to adopt new technologies than other SMBs
19
Maturing business owners’ excitement and
degree of overwhelm with technology are fairly
close. For other SMBs, excitement strongly
outweighs overwhelm.
Not surprisingly then, Maturing
business owners are not early adopters
of technology.
61%
66%
46% 43%
Maturing Business Owners All Others
Excited about new technology
Hard to keep up with technology
% Strongly Agree
Maturing
Business Owners
All Other
SMBs
Company website 68% 77%
Mobile/internet
payment devices
28 33
Cloud services 27 36
Used past year for business:
+15%pt gap +23%pt gap

20. 20
Re-defining the business, or finding specific niche in
the market either from personal desire or necessity
to stay competitive & profitable
RE-INVENTING BUSINESSES

21. Re-Inventing Businesses (15% of SMB Owners)
21
Slightly more than one out of ten businesses are in the ’Re-Inventing’ life stage. These companies
have been in business for many years, but got a wake up call at some point, often a flattening or
decline of sales, that drove them to re-assess and begin looking at how to do things differently. The
drive of these business owners is strong, and they are exploring all possible resources to help the
company turnaround…technology, new media, sustainability, etc. Many provide employee benefits &
pension plans, which presumably further tax their revenue base.
Average Age 53 v. 53 for all other SMBs
Years in Business (avg) 33.3 years
# of Employees (avg) 26
% with Sales Growth 63% (11%+…29%)
Household Income (avg)
$173K v. $187K for all other
SMBs
Re-Inventing business owners are less
confident than other SMBs about the
future success of their companies.
39%
48%
Re-Inventing Business
Owners
All Other SMBs
% Extremely/Very Confident in Success of
Company Next 24 Months
Key Characteristics

22. Re-Inventing business owners are concerned about getting &
keeping customers; technology plays a key role in their re-invention
22
49%
51%
57%
57%
Maintaining existing
customer base
Being able to attract
new customers
Re-Inventing Business Owners All Other SMBs
Acquisition & retention are key concerns
for Re-Inventing business owners.
% Very Concerned
50%
42%
81%
62%
35% 31%
72%
51%
Email marketing Cloud usage Co website Apps
Re-Inventing Business Owners All Other SMBs
Used Past Year for Business
Greater technology use is part of their re-
invention strategy.
Without state of the art technology and systems, it’s difficult to grow the
business
67% Re-Inventing Business Owners
61% All Other SMBs

23. Re-Inventing business owners are leveraging multiple strategies
and tactics to regain a solid business footing
23
25%
45%
58%
53%
32%
58%
64%
68%
Developing prdts/services that
cater to the young
Becoming more tech advanced
Working to make sustainability
an integral part of prdts/services
Launching new prdts/services to
meet changing customer needs
Re-Inventing Business Owners All Other SMBs
Many Re-Inventing businesses are
generating sales nationally and
internationally to supplement local sales.
Re-Inventing
Business Owners
All Other
SMBs
Generate Sales:
Locally
90% 92%
Nationally 67 60
Internationally 31 23
% Agree
They are using a number of strategies to
meet customer demands and change the
nature of their businesses.

24. 24
Under pressure due to the economy, competition and/or
decreased sales, customers or credit availability
SURVIVING BUSINESSES

25. Surviving Businesses (12% of SMB Owners)
25
Roughly one in ten businesses falls into the 'Surviving' business life stage. Most businesses that are
in the ‘Surviving’ segment have been in operation for a number of years. Yet, whether it was an
inability to come back fully from the recession, or some substantial threat from a competitor, they
now find themselves working hard to keep the business afloat. Sales are declining, and they are not
highly confident things will turn around. The U.S. economy is suspect, and the uncertainty around the
impact of the presidential election hangs heavy. About half have a hard time keeping up with
technology, and they tend to lag when it comes to using the more current marketing tools.
Average Age 54 v. 53 for all other SMBs
Years in Business (avg) 31
# of Employees (avg) 23
% with Sales Growth 37%, 11%+…14%
College graduate+ 63% v. 69% for all other SMBs
Household Income (avg) $134K v. $192K for all other SMBs
Married 68% v. 75% for all other SMBs
Surviving business owners have
low confidence in the future
success of their businesses.
38%
84%
Surviving Business
Owners
All Other SMBs
% Extremely/Very Confident in Success of
Company Next 24 Months
Key Characteristics

26. Surviving business owners have heightened concerns about many
facets of their businesses, as well as the U.S. economy
26
36%
45%
48%
48%
49%
48%
52%
62%
65%
69%
69%
70%
Outcome of the presidential
election
Having enough $ to retire
Rising costs of business
Maintaining existing customer
base
Being able to attract new
customers
The U.S. economy
Surviving Business Owners All Other SMBs
Surviving business owners carry heightened
concerns about the economy, rising costs,
their customer base & the outcome of the
presidential election.
They include the highest proportion of
Republicans of any business life stage
segment.
% Very Concerned
Surviving SMBs All Other SMBs
Democrat 18% 19%
Republican 53 45
Independent 23 26
Other/None 6 10
Political Affiliation…

27. Surviving business owners started their companies to be their own
boss & make money; many find technology overwhelming
27
Surviving business owners started their
companies in order to be their own boss.
Nearly half find new technologies
overwhelming.
Surviving
Business Owners
All Other
SMBs
Be my own boss 1 2
Make money 2 3
Have control over my
schedule
3 6
Build something 4 1
Reasons for Starting Business in
Rank Order
59%
64%
48%
44%
Surviving Business Owners All Other SMBs
Excited about new technology
Hard to keep up with technology
% Strongly Agree
+11%pt gap +20%pt gap

28. Surviving owners tend to use traditional marketing approaches;
few are planning to employ cloud services for their businesses
28
32% 32%
26%
14% 13%
31%
34%
22% 21%
16%
Print
advertising
Email
marketing
Direct mail Social media
advertising
Online search
advertising
Surviving Business Owners All Other SMBs
Marketing/Advertising Vehicles Used Past Year
Surviving business rely on print, email
marketing and direct mail; social media and
online advertising are little used.
Surviving
Business
Owners
All Other
SMBs
Familiar with 79% 87%
Used for business
past year
24 34
Extremely/Very
Likely to Add Next
Year
9 17
Cloud Computing for Business
Few Surviving business owners are
using or planning to use cloud
services for business.

29. 29
Selling or transitioning the business to
someone else, or closing it
TRANSITIONING BUSINESSES

30. Transitioning Businesses (5% of SMB Owners)
30
Every year a small number of business owners decide it is time to move on…these are the
‘Transitioning’ businesses. These companies have been in business a long time, but their owners are
either passing the businesses along to another, or selling the company. It is often not about
retirement. Even though Transitioning business owners skew older, a fair number are wanting to try
something new; a new career, or maybe even a different business. They have decided it is time for a
new beginning.
Average Age 58 v. 53 for all other SMBs
Years in Business (avg) 28 years
# of Employees (avg) 16
% with Sales Growth 51% (11%+…31%)
Household Income (avg) $195K v. $185K for all other SMBs
Transitioning business owners’ confidence
in the success of their companies has
waned.
28%
48%
Transitioning Business
Owners
All Other SMBs
% Extremely/Very Confident in Success of
Company Next 24 Months
Key Characteristics

31. 33%
25%
40%
21%
66 or older Never / Not Sure
Transitioning business owners are moving on to pursue some
other type of business; few are ready to retire
31
Planned Retirement Age…
They want to continue working because they
like being active & enjoy it. Nearly 20% want
to try something new.
Transitioning business owners skew
older; but most are not yet ready to retire.
58.1
52.6
Average Age
Transitioning Business Owners All Other SMBs
Reasons Want to Keep Working
7%
6%
25%
26%
32%
65%
70%
11%
14%
21%
25%
27%
54%
66%
Want to start another business
Want to try a different career
Need $ to make ends meet
Keep health insurance/other
benefits
Want money to buy extras
Enjoy working
Want to stay active & involved
Transitioning Business Owners All Other SMBs

32. Four out of ten transitioning owners have a succession plan.
Marketing is dialed back in preparation for the transition.
32
Some Transitioning business owners are
passing the business along; the rest are
selling or closing the business.
Transitioning Business
Owners
Have a formal
succession plan
39%
Don’t have one / Not
sure
50
Not applicable 11
In preparation for the business transition or
sale, one-third are no longer using advertising
or marketing vehicles to promote the business.
No Specific Marketing or Advertising
Vehicles Used Past Year
31%
19%
Transitioning Business
Owners
All Others SMBs

33. Conclusions
33
Messaging Themes and Considerations
Starting Up Businesses • Women & minority ownership skews; younger owners (47 average age)
• Strong need for access to capital
• Opportunity to enlist them with/give advice about general business services (payroll, insurance,
employee benefits, etc.) that they’ve yet to set up
• Reach them via outdoor (travel), and through digital/online and social media
Growing Businesses • Work the longest hours - have all cylinders firing
• Passionate, bringing their ideas to life through their business
• Technology lovers, use cutting edge devices/services - the Cloud for them is big
• Leverage traditional & digital channels…suggesting that both are avenues for reaching them
Maturing Businesses • Have arrived, and everything is working!
• Strongest local focus of any segment, movers in their communities; local efforts key to reaching
them
• Reluctant, slow adopters of new technologies
• Key strategy might be to help them get more knowledgeable about tech before/or so that the
business doesn’t slip
Re-Inventing Businesses • Things slipped and they’re trying to regain their edge
• Avid technology adopters; Using all the latest and greatest (marketing tools, new products,
targeting, etc.) to turn things around
• Strong advocates of sustainability as a business strategy
Surviving Businesses • The least confident in the future success of their businesses
• Extremely worried about the economy, their customer base, having enough for
retirement…opportunity to address these fears with easy-to-use tools and solutions
• Opportunity to leverage their need to be in control, and be their own boss; self-empowerment
Transitioning Businesses • They need guidance for both buying and selling businesses, and how to set up a succession plan
• Wealth management is another key need; although they are not necessarily retiring, they are the
oldest segment

34. Research:
Jessie Shaw, VP
212-500-0611
jessieshaw@bizjournals.com
About The Business Journals
34
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