BSM Final ExaM nEwESt 2025/2026 with 158 CoMplEtE
QuEStionS and CorrECt anSwErS |alrEady GradEd
a+||Brand nEw VErSion!
What is a Growth stage of a business? - ANSWER-- After a successful start-up; multiple
opportunities available; recognition that there are more orders, revenue, customers; decisions
not based on survival.
- "When it stresses people or processes. Then you have to upgrade or add more people and
processes"
Issues faced by a business in Growth stage? - ANSWER-Risks. People, processes, prioritizations,
pace, and imitation.
What pitfalls can there be within the growth stage? - ANSWER-Marketing, finance, team/structure,
and operations.
How long can a business stay in the growth phase? - ANSWER-A business can stay in this phase
indefinitely, some would maybe even like to stay in this phase... growth is not linear.
Stage 1 to Stage 2 key issues - ANSWER-move from viability (1) to getting more resources for
growth (2)
Stage 1 to Stage 2 top management - ANSWER-mircro manage (directly) to direction or delegation
(2)
Stage 1 to Stage 2 Mgt style - ANSWER-Individualistic (personal) to coordination
Stage 1 to Stage 2 Organizational Structure - ANSWER-Unstructured to functional
,Stage 1 to Stage 2 product or market research - ANSWER-Instinct (1) to mainly improving existing
products, scaling and some developing and researching new products (2)
Stage 1 to Stage 2 Systems - ANSWER-simple, day to day (1) to systematic control reports,
analysis, comparisons (own and social) (2)
Stage 1 to Stage 2 Finance source - ANSWER-owners and friends (1) to Banks, retained earnings,
new partners (2)
Stage 1 to Stage 2 Profits - ANSWER-Negative or barely (1) to positive returns (2)
Stage 1 to Stage 2 Major Investments - ANSWER-Equipment financing (1) working capital (Current
Assets - Current Liabilities), finding new locations (2)
Stage 1 to Stage 2 Product market - ANSWER-single (1) to broader (2)
Changing importance of factors - ANSWER-Stage 1: Owner, Cash, Product, crucial relations (one
significant customers, supplier or technology)
Stage 2: Managers, systems, formal research, wider network
Owner(s) wants to grow or? - ANSWER-Yes-> Success Growth (pursuit of further or new growth by
owners. Intimately involved.
No-> Success Disengagement (owner takes a step back and management takes over), owner
focuses on their interests, professional managers are more important
Why entrepreneurs don't scale? - ANSWER-- Loyalty to comrades
- Task orientation
- Single-mindedness to one product/idea
- Working in isolation
, Challenges/Needs of Growing Business - ANSWER-- Structure
- Finance
- Human capital
- Administration
- Business focus
- Market Situation
- Marketing
Smart growth - ANSWER-1) Being better is more important than being bigger (move away from
from revenue thinking...) Every business does not have to grow but every business does have
to continuously improve its customer value proposition better than competitors.
2) Not Grow or Die but improve or die
3) Growth is a complex experimental learning process, depends on people/leader/culture
4) Growth is outcome of a comprehensive internal corporate system, leaders, culture, and
processes.
5) Scaling is the foundation of organic growth and small strategic acquisitions can be excellent
6) Needs diversity of thinking.
Grow to Greatness - Edward Hess - ANSWER-- Thirty four CEOs had prior work experience in their
business's industry
- Twenty-eight CEOs had no prior start-up experience
- Forty companies were self-funded by the founder, family, and friends
- Thirty-four companies had more than one founder
- Five companies were started by women
Respecting Growth's destructive power - ANSWER-- Both an opportunity and a risky challenge
- Difficulty of monitoring problems continuously
- Imitators (look ahead rather than who is catching up)
- Installation of processes as only some parts may work (trial and error)
QuEStionS and CorrECt anSwErS |alrEady GradEd
a+||Brand nEw VErSion!
What is a Growth stage of a business? - ANSWER-- After a successful start-up; multiple
opportunities available; recognition that there are more orders, revenue, customers; decisions
not based on survival.
- "When it stresses people or processes. Then you have to upgrade or add more people and
processes"
Issues faced by a business in Growth stage? - ANSWER-Risks. People, processes, prioritizations,
pace, and imitation.
What pitfalls can there be within the growth stage? - ANSWER-Marketing, finance, team/structure,
and operations.
How long can a business stay in the growth phase? - ANSWER-A business can stay in this phase
indefinitely, some would maybe even like to stay in this phase... growth is not linear.
Stage 1 to Stage 2 key issues - ANSWER-move from viability (1) to getting more resources for
growth (2)
Stage 1 to Stage 2 top management - ANSWER-mircro manage (directly) to direction or delegation
(2)
Stage 1 to Stage 2 Mgt style - ANSWER-Individualistic (personal) to coordination
Stage 1 to Stage 2 Organizational Structure - ANSWER-Unstructured to functional
,Stage 1 to Stage 2 product or market research - ANSWER-Instinct (1) to mainly improving existing
products, scaling and some developing and researching new products (2)
Stage 1 to Stage 2 Systems - ANSWER-simple, day to day (1) to systematic control reports,
analysis, comparisons (own and social) (2)
Stage 1 to Stage 2 Finance source - ANSWER-owners and friends (1) to Banks, retained earnings,
new partners (2)
Stage 1 to Stage 2 Profits - ANSWER-Negative or barely (1) to positive returns (2)
Stage 1 to Stage 2 Major Investments - ANSWER-Equipment financing (1) working capital (Current
Assets - Current Liabilities), finding new locations (2)
Stage 1 to Stage 2 Product market - ANSWER-single (1) to broader (2)
Changing importance of factors - ANSWER-Stage 1: Owner, Cash, Product, crucial relations (one
significant customers, supplier or technology)
Stage 2: Managers, systems, formal research, wider network
Owner(s) wants to grow or? - ANSWER-Yes-> Success Growth (pursuit of further or new growth by
owners. Intimately involved.
No-> Success Disengagement (owner takes a step back and management takes over), owner
focuses on their interests, professional managers are more important
Why entrepreneurs don't scale? - ANSWER-- Loyalty to comrades
- Task orientation
- Single-mindedness to one product/idea
- Working in isolation
, Challenges/Needs of Growing Business - ANSWER-- Structure
- Finance
- Human capital
- Administration
- Business focus
- Market Situation
- Marketing
Smart growth - ANSWER-1) Being better is more important than being bigger (move away from
from revenue thinking...) Every business does not have to grow but every business does have
to continuously improve its customer value proposition better than competitors.
2) Not Grow or Die but improve or die
3) Growth is a complex experimental learning process, depends on people/leader/culture
4) Growth is outcome of a comprehensive internal corporate system, leaders, culture, and
processes.
5) Scaling is the foundation of organic growth and small strategic acquisitions can be excellent
6) Needs diversity of thinking.
Grow to Greatness - Edward Hess - ANSWER-- Thirty four CEOs had prior work experience in their
business's industry
- Twenty-eight CEOs had no prior start-up experience
- Forty companies were self-funded by the founder, family, and friends
- Thirty-four companies had more than one founder
- Five companies were started by women
Respecting Growth's destructive power - ANSWER-- Both an opportunity and a risky challenge
- Difficulty of monitoring problems continuously
- Imitators (look ahead rather than who is catching up)
- Installation of processes as only some parts may work (trial and error)
