Starting a business?

The business life cycle is a business blueprint that can help you as an entrepreneur:

  • make decisions with proper planning and preparation

  • build stronger and more successful businesses based on lessons learned

A team in an office space looking at Post-it notes on a boardPhoto by Leon on Unsplash

The 5 Stages

Flaticon Icon1: Launch — the "infancy" stage

A startup forms the foundation for its success with a careful business plan by the founders, who invest in:

  • research and development

  • equipment, technology, and marketing tools

  • staff, headquarters, and offices

Flaticon Icon2: Growth — the "adolescent" stage

The business is looking for ways to increase its profits through marketing, sales, and scaling.

Flaticon Icon3: Shakeout — the "adult" stage

Revenue usually slows because of competitors who offer the same or better services on the market.

Flaticon Icon4: Maturity — the "crossroads" stage

The business is still making a profit but it's a good time to revisit the business plan, and either adapt or stay the course.

Flaticon Icon5: Decline — the "end of the road" stage

The business can make the decision to find a new purpose or leave the market entirely.

How The Business Life Cycle Really Works

Flaticon IconLaunch — Lucid Motors

  • Its product is ready to go

  • Demand is increasing

  • Accessible in more & more countries

Flaticon IconGrowth — Rumie

  • Scaling up to a wider audience

  • Finding more partnerships

  • Building brand identity and awareness

Flaticon IconShakeout & Maturity — Apple

  • The company is fully grown

  • The product is popular in the market but fighting off new competitors

  • Sales have peaked and then slowed down

Flaticon IconDecline — Kodak Pharmaceuticals

  • Transitioned from film production to bankruptcy

  • Change in strategy to stay afloat

  • Took a grant from the US Government for pharmaceutical manufacturing

Quiz

Which business should consider a new business plan?

Business Scenario

Maria owns an Information Communication Technology (ICT) firm with 25 employees and has been building a huge clientele. The firm is now making a profit thanks to a high market share and strong brand campaign.

Maria's investments in technological devices, recruitment of employees, research and development, and physical space are paying off. She's very happy with her business decisions and lessons learned so far.

She's now looking for opportunities to expand the firm.

Quiz

What are the next steps for Maria's firm?

Take Action

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This Byte has been authored by

SC

Stacy Charles

Brand management