At some point, before starting your company it must have crossed your mind how big can it be. To reach this point there are some things you need to consider. That is where the business lifecycle takes place.
The business lifecycle is a series of stages that help you understand the beginning and end of a business. This lifecycle consists of five stages: launch, growth, maturity, transition, and succession. These stages help business owners optimize growth and increase the value of their business. Let’s talk about each of them.
First Stage – Launch
This is at the beginning of your business, where you get the name out there. In this stage, you already know what and how you are selling your services or products. And it is also important to have clear the specific market you want to target.
Second Stage – Growth
After launching your business you can begin to start looking for opportunities to grow. Once your business has established a customer base and become known for a product or service, you can focus on different ways to increase your sales and operations.
Third Stage – Maturity
At this point, your company may hit a stage of maturity when it’s more stable and profitable. Brand recognition and a solid customer base have to be on the checklist. This will allow expanding the products and services you offer.
Fourth Stage – Transition
Once your business becomes well-known you may have the opportunity to work with much larger companies. At this stage, your long-term goals should be clearer.
Fifth Stage – Succession
The final stage of a business’s life cycle is when the owner decides to close, sell, bring in a successor to take over the company, or decides to keep a part of the it. This situation can happen for many reasons.
Now you know the stages of the business life cycle. With this in mind think of where your is business at. If you feel like you need a little push to get up these stages, we can help.