Overview of the Stages of a Business

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Wikis > Overview of the Stages of a Business

Definition

The business life cycle is broken down into 5 main sections. They are the seed stage, the launch stage, the startup stage, the growth/automation stage, and the maturity stage.

Beginning Stages

The seed stage includes all the planning and other processes involved in preparing for launch. The launch stage, rather than a process, is the moment when your company goes from planning and preparation to being open for business and accepting customers. Once your launch occurs, you are in the startup stage. In this make or break stage, your goals are to establish a customer base and a solid presence in the market that will sustain your company without running of resources.

Growth Stages

Once you’ve developed a customer base and proven your product in the startup stage, you will move into the growth and automation stage. In this stage, the major goals are to accelerate your company’s growth to scale up your business, while implementing automation systems and adding employees to fulfill the needs of a larger business. In this section, the CEO shifts focus from the day to day operations of the business to planning and strategizing the future vision of the company.

When the growth and automation stage is complete, the company has reached the maturity stage. At this point of success, the owner faces the choice of how to proceed with the company. The Company is now a profitable asset, and the owner has the opportunity to choose what his future with the company will look like. The owner may choose to continue running the company, or sell it for a profit.