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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
Photo by Leon on UnsplashThe 5 Stages
1: 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
2: Growth — the "adolescent" stage
The business is looking for ways to increase its profits through marketing, sales, and scaling.
3: Shakeout — the "adult" stage
Revenue usually slows because of competitors who offer the same or better services on the market.
4: 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.
5: 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
Growth — Rumie
Scaling up to a wider audience
Finding more partnerships
Building brand identity and awareness
Quiz
Which business should consider a new business plan?
Apple is doing well but it's no longer growing, so it needs to make critical decisions about what to do next. Kodak has already made a huge change, while Lucid Motors and Rumie are still growing.
Did you know?
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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?
The firm is doing well, so there's no need for Maria to rebrand at this stage. But it's a good time to continue growing her business by offering new services and pushing sales in new markets.
Take Action
Photo by Mika Baumeister on UnsplashAre you starting a business?
This Byte has been authored by
Stacy Charles
Brand management