1. Seed & Idea Generation Phase
The first Phase of Any business (Small or Big) is the Idea generation. Everyone has different ideas for starting the business, but converting an idea into reality is the main role of this phase. A huge factor in a start-up’s success is proper conceptualization of idea which comes even before the company is launched or legal formalities are done. Before taking next steps to launch a startup,carefully research your target audience and your offering’s potential / product-market fit. Do people really need your product or services? Market Analysis that which problem does your offering solve? Is your idea already available in the market,being sold by an existing company? Answering these questions entails a lot of R& D into your potential competition and industry, about substitute for your product and market segment.
2. Startup Phase
Every business venture starts with an unique idea. Hence, the startup phase comes after ‘seed and development’ phase, where your business has moved on from a view or an idea,essentially signifying the birth of the business. According to many business masters, it is considered that the startup phase is the riskiest level in the entire life cycle of a business. Once the idea is thoroughly discussed and tested on the basic level, now it’s time to make the start of the business with legal terms and activities completed. The main challenge faced by the owner of the company in this level is cash burnout, where they overestimate the cash requirements. Since they try to capture a customer base, adaptability is the main key in this phase –creating and recreating the product according to the initial feedback received from the potential customers.
3. Growth Phase
Reaching Growth phase means that the startup has a balanced source of required income and is taking new customers consistently. The entrepreneur should start noticing an improvement in the cash flow and continued upward movement in the income. The biggest challenge faced by entrepreneurs at this stage is to handle management problems like time management, customers support and most importantly the competition of product & services. With all these in horizon the challenge for an entrepreneur is to continuously grow the top line and bottom line of this venture.
4. Establishment Phase
This Phase Comes once entrepreneur starts making balanced income and continuous in development of the business. It means that the business has been successful in becoming a booming company that has a balanced flow of income along with a solid grounding in the market level and a loyal customer base. For any successful CEO and their employee, business becomes more of a daily job, where everyday circumstances are mostly predictable. However, such monetary success must not make the entrepreneur shift focus from the bigger picture, that is, further growth and expansion. They need to keep in mind that the basic ideas which had led to their success must be rethought in order to keep it viable and interesting in order to grow the customer base.
5. Expansion Phase
This phase is characterized by growth into new markets and distribution channels of the business. Any company at this phase of business tries to capitalise on newer opportunities and segment. Business at this stage is marked by rapid growth in revenue and cash inflow. The hard work of employees/owner and late night assignments have finally paid off and now the entrepreneur garners the benefits.
6. Decline & Exit Phase
It is the last stage of any startup because at this level business is dependent on changes in the economy, society, or market conditions & others and any change can decrease sales and profits of the company. It may quickly end many small companies or startups. Businesses in the decline stage of the life cycle of business will be challenged with dropping sales, profits, and negative cash flow. The biggest issue is how long the business can support a negative or decrease cash flow.
Worldwide Startup and Entrepreneurs are a celebrated community and they any country which has succeeded till now always had lot of startups.
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