Critical Mass Model

Critical Mass Model is a concept in business that suggests that there is a pont in a company's growth that the business has actually turned from an uncertain undertaking into a revenue-generating system. This comes as the result of a company's profitable endeavours, market place, innovations and physical and financial resources accruing to the organisation's independence from intervening investment to keep it afloat. Every company, however, should be working towards achieving this pivotal point in company growth. Before critical mass, the company is a fledgling business, struggling to make it from one month to the next. Once critical mass is reached, the company blossoms into a self-sufficient, revenue generating machine that will provide the entrepreneur with a wide range of financial options for the future. It is easier to visualise critical mass as the size a company has to acquire in order to compete in the market efficiently and to remain competitive. This size may be determined by the number of staff, the amount of resources, revenue streams and total market share.

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