All businesses exist within a business lifecycle which defines their entire journey of development. As an entrepreneur, knowing the stage that your business is in helps you understand the obstacles and opportunities you may have to manage your business well. Here are the 5 key business lifecycle stages.
1. The seed and development stage
Before your business is founded as a physical entity, it normally exists in idea form. During this stage, it is your responsibility to gather the right advice and seek expert opinion on the viability of your idea. When successfully undertaken, this stage gives your business the right foundation.
2. The startup stage
This is the stage where, after thoroughly testing your business idea, you make a move and take a risk to found the business. The birth of your business idea into a startup should be accompanied by proper contingency planning and risk mitigation by investing in various safety nets to help cushion you. It is your responsibility to develop and implement the right market entry strategy to ensure that you begin with a bang.
3. Growth and establishment stage
This stage is characterized by making various adjustments in your businesses' products and services to actualize the proper flow of sales. A proper balance of your expenses and income should also be maintained. You should target expanding your reach in the market to obtain new grounds by implementing effective business marketing measures.
4. Business expansion stage
The business expansion stage involves broadening your business's horizons to gain new geographic ground. This stage is accompanied by international or regional expansion. It can also be accompanied by the expansion of your businesses’ products and services. Proper planning and implementation of the right business model should be used as a backup to ensure that your business expansion is successful and risk-free.
5. Business maturity stage
The business maturity stage is the last stage in the business lifecycle. After years of successfully generating profits and growing at a decent pace, there comes a time when your business cannot expand further. At this stage, you will probably have become a seasoned CEO with valuable experience of navigating your business through any challenge. You may, depending on your ambitions, contemplate exiting the market either by retiring or selling your business.
