Business Life Cycle

Question 1

Seed stage

Answer 1

The stage where initial research into the industry and feedback help to develop and refine the idea.
Viability is determined, key stakeholders, funding acquired. Requires time, energy and money.
Success is heavily relied upon business plan and clear vision
Overcome the challenges of market acceptance

Question 2

Start-up stage

Answer 2

• Risk taking and hiring and training stage
• Viability, clear business plan and legal structure is established.
• idea is developed into a product or service
• Stage must establish customer base, maintain standard with suppliers, sources of support and governmental development offices.

Question 3

Growth stage

Answer 3

• Movement into an established state, solidify its place in the market
• add financial plans, new organisational structure.
• Business will innovate and refine goals
• It’s important to revise the business plan, evaluate goals and objectives, set in place financial and marketing plans to accommodate new organisational structure, management positions, ideas and employees.
• Quality practices and heavy recruitment and investment in research and development.
• Clearly establishes processes and expectations

Question 4

Maturity

Answer 4

• Top of the industry, longest stage, stable profits,
• Challenges: environmental changes, economy, society or market conditions, technology.
• Strategy: implement strategic decisions and remain competitive,

Question 5

Post maturity

Answer 5

• Steady state (continuing state of maturity), decline (drop in sales and expenses as a result of poor management) or renewal (new areas of growth leading to sales)
• Business is handed over and may decrease in value
• Innovate based on product or service