{"id":3394,"date":"2021-03-09T12:30:39","date_gmt":"2021-03-09T12:30:39","guid":{"rendered":"https:\/\/jupiterbusinessmentors.com\/blog\/?p=3394"},"modified":"2021-05-07T12:42:32","modified_gmt":"2021-05-07T12:42:32","slug":"5-stages-of-the-business-life-cycle-how-to-prepare-for-each","status":"publish","type":"post","link":"https:\/\/jupiterbusinessmentors.com\/blog\/5-stages-of-the-business-life-cycle-how-to-prepare-for-each\/","title":{"rendered":"5 Stages Of The Business Life Cycle &#038; How To Prepare For Each"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Starting the business is only the first step &#8212; to stay afloat, it also needs to evolve and complete the lifecycle. An <\/span><span style=\"font-weight: 400;\">estimated <\/span><span style=\"font-weight: 400;\">90 percent of startups<\/span><span style=\"font-weight: 400;\"> fail to sustain themselves once the founder starts ignoring the fundamental <\/span><span style=\"font-weight: 400;\">aspects of the business process and fails to set realistic goals for scaling.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s why knowing your position in the <\/span>business life cycle<span style=\"font-weight: 400;\"> and tweaking your strategies can be hugely rewarding, especially if you want to stay ahead of the curve. By the end of this article, you will walk away with a roadmap of the <\/span><span style=\"font-weight: 400;\">critical stages of growth of a business and an awareness of which stage you are currently in.\u00a0<\/span><\/p>\n<h2><strong>What is a business life cycle?<\/strong><\/h2>\n<p><img loading=\"lazy\" class=\"size-medium wp-image-3396 alignleft\" src=\"https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image4-1-300x250.png\" alt=\"\" width=\"300\" height=\"250\" srcset=\"https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image4-1-300x250.png 300w, https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image4-1.png 600w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>A business life cycle<span style=\"font-weight: 400;\"> provides a cyclical representation of the evolution of any business. Like a living being takes birth, grows, matures, experiences a decline in quality of life, and ultimately dies, a business also experiences a similar cycle.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether you are bootstrapped small business or a million-dollar tech company that has raised funds from VCs, <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><strong><br \/>\nHere are the key stages your business will find itself in:\u00a0<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Seed<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">start-up,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">growth,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">maturity, and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">decline\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The exact time taken by each business to reach or pass through a specific stage of the lifecycle varies. However, every founder can enhance the business value by optimizing the strategies based on the stage of the lifecycle. Some owners can even work out newer ways of using or marketing an existing product\/service in its decline stage and extend the overall lifespan of the business.\u00a0\u00a0<\/span><\/p>\n<p><strong>Let\u2019s take a closer look at each stage:<\/strong><\/p>\n<h3><strong>Seed\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">If you want to enjoy lush apples from your apple orchard, you will need to start planting the seed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is exactly what the seed stage represents. It marks the initiation of your business, right when you have an idea.\u00a0 During this stage of the <\/span>business life cycle<span style=\"font-weight: 400;\">, you are looking to plant the business idea and nourish it to help it thrive.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Use this stage for some introspection &#8212;\u00a0 start by examining the viability of your idea through market research or talking to friends, family, and colleagues. Ask yourself the current pain points your target customers face and how your product can make a difference to the market<\/span><span style=\"font-weight: 400;\">?<\/span><span style=\"font-weight: 400;\"> Even the best ideas fail to take off because the founders shy away from assessing its viability and jump straight ahead.\u00a0<\/span><\/p>\n<h3><strong>Start- Up\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Once you are confident about the idea, it is time to set the ball rolling. The start-up stage marks the birth of your business. Investors also use this stage to take care of the finances by approaching investors for fundraising or investing their capital.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is also one of the high-risk stages for your business &#8212;\u00a0 only <\/span><span style=\"font-weight: 400;\">15.8 percent<\/span><span style=\"font-weight: 400;\"> of businesses manage to progress further from here. One wrong move, and your business may bear the brunt for years to come. Always remember that the primary goal of this stage is to make the business sustainable and profitable. Focus your efforts on establishing a clear business structure, working out cash flow models, listening to the feedback from the initial set of customers, and trying out different ideas to make the business work.\u00a0<\/span><\/p>\n<h3><strong>Growth\u00a0<\/strong><\/h3>\n<p><img loading=\"lazy\" class=\"size-medium wp-image-3397 alignright\" src=\"https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image2-1-300x250.png\" alt=\"\" width=\"300\" height=\"250\" srcset=\"https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image2-1-300x250.png 300w, https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image2-1.png 600w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><span style=\"font-weight: 400;\">Once you exit the orbit of the start-up stage, your business starts growing. It is also an indicator that your strategy is working.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">During this period, you may experience a healthy cash flow but lower turnovers. But don\u2019t worry &#8212; once you make it past the break-even point, you will also start recording profits. That\u2019s why your sole objective during this stage should be implementing strategies that maximize profits. This is the time to hire the best talent in the market to optimize your business\u2019s full potential and work towards cementing stronger relationships with your customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Spend some time thinking about the next round of investment to meet the increasing <a href=\"https:\/\/jupiterbusinessmentors.com\/blog\/5-things-to-do-to-scale-your-startup\/\">demands of a growing business<\/a> and take it to the next stage.\u00a0<\/span><\/p>\n<h3><strong>Maturity\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">In this stage, your business has been able to establish a strong foothold in the industry. You are also able to generate steady profits for consecutive years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead of micromanaging various aspects of the business or getting too comfortable in your zone, it is time for you to expand the horizon. Start thinking about the future of your business and if there are expansion opportunities. Also, stay realistic about the cost <\/span><span style=\"font-weight: 400;\">v. potential returns and <\/span><span style=\"font-weight: 400;\">work out an exit strategy as you enter the next stage.\u00a0<\/span><\/p>\n<h3><strong>Decline\u00a0<\/strong><\/h3>\n<p><img loading=\"lazy\" class=\"size-medium wp-image-3398 alignleft\" src=\"https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image1-1-300x250.png\" alt=\"\" width=\"300\" height=\"250\" srcset=\"https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image1-1-300x250.png 300w, https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image1-1.png 600w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><span style=\"font-weight: 400;\">Entering this stage is inevitable if you stop making efforts to keep the business in top shape. When you find yourself here, you can either exit the business entirely or think about renewal efforts to reinvent it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But before you proceed any further, take an honest look at your business and ask yourself if you are ready for further growth. Speak to your key managerial executives, accountants, and lawyers to explore the possibilities. Dragging on a business that has run its course will only make you one among many in the business graveyard.\u00a0\u00a0<\/span><\/p>\n<h2><strong>Looking for someone to help you navigate the business growth cycle?<\/strong><\/h2>\n<p>Understanding the business life cycle helps you predict the potential pitfalls and chalk out a strategy to stay safe. Given the fiercely competitive markets, it is crucial to know where you are and what lies ahead of you. But your acumen alone may not be sufficient to cruise through the various stages and take the appropriate decisions. Connecting with a business mentor can help you sharpen your practical business sense and improve the chances of success.<\/p>\n<p>Jupiter Business Mentors has been set up to connect mentors to the <span style=\"font-weight: 400;\">start-up community and small &amp; medium business enterprises so that you can learn from their experiences and <\/span><span style=\"font-weight: 400;\">move ahead. With 35+ expert mentors across the industry on the same platform, getting tailormade advice for your business has never been easier. Click <\/span><span style=\"font-weight: 400;\">here <\/span><span style=\"font-weight: 400;\">to set up <\/span><span style=\"font-weight: 400;\">90 minutes of free sessions with any six mentors on the platform.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Having a clear framework of the lifecycle of a business eliminates last-minute surprises. Learn how to take scale your business by identifying the various steps of a company\u2019s growth.<\/p>\n","protected":false},"author":1,"featured_media":3395,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[7,8],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>5 Stages Of The Business Life Cycle &amp; How To Prepare For Each - Jupiter Business Mentors Blog<\/title>\n<meta name=\"description\" content=\"Whether you are a business startup or a million-dollar company here are the business life cycle stages you need to prepare for, by experts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/jupiterbusinessmentors.com\/blog\/5-stages-of-the-business-life-cycle-how-to-prepare-for-each\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"5 Stages Of The Business Life Cycle &amp; How To Prepare For Each\" \/>\n<meta property=\"og:description\" content=\"Whether you are a business startup or a million-dollar company here are the business life cycle stages you need to prepare for, by experts.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/jupiterbusinessmentors.com\/blog\/5-stages-of-the-business-life-cycle-how-to-prepare-for-each\/\" \/>\n<meta property=\"og:site_name\" content=\"Jupiter Business Mentors Blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-09T12:30:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-05-07T12:42:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image3-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"766\" \/>\n\t<meta property=\"og:image:height\" content=\"306\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"5 Stages Of The Business Life Cycle &amp; How To Prepare For Each Stage\" \/>\n<meta name=\"twitter:description\" content=\"Whether you are a business startup or a million-dollar company here are the business life cycle stages you need to prepare for, by experts.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image3-1.png\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"5 minutes\">\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/jupiterbusinessmentors.com\/blog\/#website\",\"url\":\"https:\/\/jupiterbusinessmentors.com\/blog\/\",\"name\":\"Jupiter Blog\",\"description\":\"Jupiter Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/jupiterbusinessmentors.com\/blog\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/jupiterbusinessmentors.com\/blog\/5-stages-of-the-business-life-cycle-how-to-prepare-for-each\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image3-1.png\",\"contentUrl\":\"https:\/\/jupiterbusinessmentors.com\/blog\/wp-content\/uploads\/2021\/03\/image3-1.png\",\"width\":766,\"height\":306},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/jupiterbusinessmentors.com\/blog\/5-stages-of-the-business-life-cycle-how-to-prepare-for-each\/#webpage\",\"url\":\"https:\/\/jupiterbusinessmentors.com\/blog\/5-stages-of-the-business-life-cycle-how-to-prepare-for-each\/\",\"name\":\"5 Stages Of The Business Life Cycle & How To Prepare For Each - 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