Business Growth and Decline Flashcards
What are the 4 stages of the life cycle
establishment
growth
maturity
Post maturity- renewal, steady state, decline
What are the features and challenged of establishment stage
sales- begin slowly
profit- slow occasional loss
Cash flow- period of constant cash outflow
Costs- high fixed costs for premises equipment, raw materials and insurance
Customers- attempts at gaining a large customer base and predicting customers needs
Main problem- lack of money due to cash flow shortages
Risk Level- Extremely high, especially within first 3 months- high degree of uncertainty
What to cover when talking about each phase
(SPR Can Probably Cure Cancer)
Sales
Profit
Risk level
Cash flow
Problems (Main problem)
Costs
Customers
What are the features and challenged of growth stage
Sales
Profit
Cash flow
Costs
Customers
Problems
Risk level
What are the features and challenged of maturity stage
Sales
Profit
Cash flow
Costs
Customers
Problems
Risk level
What are the features and challenged of Post Maturity stage
Sales
Profit
Cash flow
Costs
Customers
Problems
Risk level