Business Growth Life Cycle
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Stage 2 as you remember is the growth stage.
Business growth life cycle. Starting a business is tough but it s a lot easier when you are able to recognize the company growth stages where you re at in that life cycle and therefore what your focus should be. The ability to sell produce invent or whatever. Small businesses are built on the owner s talents.
Summary of product life cycle characteristics objectives and strategies. In the early stages the owner s ability to do the job gives life to the business. This article will give you some information on each of these stages.
The terms business life cycle and stages of business growth are sometimes used interchangeably. If we depict these stages of growth in a diagram these follow s shaped curve as shown in figure 33 1. The business life cycle is the progression of a business in phases over time and is most commonly divided into five stages.
The business is already going you have customers and market demand you re feeling excited and business is taking off. But what exactly is it. The cycle is shown on a graph with the horizontal axis as time and the vertical axis as dollars or various financial metrics.
As your business grows and develops so too do your business aims objectives priorities and strategies and that s why an awareness of what stage of the business life cycle you are currently. Launch growth shake out maturity and decline. Small and medium sized business entrepreneurs typically prefer to look at the evolution of their companies in terms of business growth.
The characteristics objectives and strategies at each stage of product life cycle are now juxtaposed in the following table 33 1. During the growth of a small business a company will go through the stages of the business life cycle and encounter different challenges that require different financing sources. The answer to this question is simple knowing the stage will help them get an idea about where their business stands in the growth cycle and also help them get prepared for the next stage.
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