1. THE LIFE CYCLE OF A BUSINESS

2. LIFE CYCLE OF A BUSINESS
Every business goes through 4 basic stage before it reaches full maturity.
Stages 3 and 4 tend to
continue to occur in
mature companies.

3. LIFE CYCLE OF A BUSINESS
A. CONCEPTUAL STAGE
B. START-UP STAGE
C. STABILIZATION STAGE
D. GROWTH STAGE

4. A. CONCEPTUAL STAGE This stage is divided into four steps:
1. HAVING AN IDEA or RECOGNIZING AN OPPORTUNITY:
Opportunities are found where needs or problems exist. The need or the problem is the opportunity. The skill of identifying these needs or problems is a skill that can be
developed when one becomes
aware of their surroundings.

5. A. CONCEPTUAL STAGE 2. ANALYSING THE IDEA
Gather information and ask questions designed to assess the opportunity.
3. ORGANIZING THE RESOURCES
Weigh the money-making potential against the costs of its start up and maintenance.
4. MOBILIZING THE RESOURCES
Prepare for day-to-day running of business. (i.e., rent space). Once this stage is complete business is born

6. A. CONCEPTUAL STAGE
THE ULTIMATE SUCCESS OF ANY VENTURE IS DETERMINED BY HOW WELL THE ENTREPRENEURS EXECUTE THE FOUR STEPS OF THE CONCEPTUAL STAGE.
THE CONCEPTUAL STAGE CAN TAKE A FEW WEEKS, BUT ON AVERAGE, 6 – 9 MONTHS

7. B. THE START-UP STAGE Vision is tested
Business Plan needs revision because everything usually takes longer and cost more to implement than was originally planned.
MOST CRUCIAL stage in the life cycle
BACK TO THE
DRAWING
BOARD!!!

8. C. STABILIZATION STAGE
When a business reaches stabilization, the cash flow is relatively stable and the financial statements may start showing a profit.
It is during this period
that an organization’s
structure begins to take
shape.

9. D. GROWTH STAGE
Entrepreneur decides if they want to take business beyond the stabilization stage.
Re-enters planning mode & may require additional financing.
Needs long-term strategies
May start delegating tasks to others.
May need more of the following:
structure, employees, funds, expansion.
Advertising budgets & new technology
become important to stay competitive.