For all intents and purposes, setting up a business is always a gamble. Members of the organization inevitably face the realities of risk, and this is why it is important to be aware of the critical stages of business development.
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1. Start-Up Stage
As with all things, birth is always the first milestone. This is where most of the concepts and ideas are formed, along with the commitment to get a clear vision of the future in view early on. At this point, business owners make the best effort to build a customer base, and the first batch of stock is purchased here, too.
2. Growth Stage
Growth is defined by expanded capabilities as a result of proper preparation done in the previous stage. Here, a company may reap a few low-lying fruits. Also, it gives the company an idea as to whether they have done right or wrong. This is the period of many opportunities to make adjustments.
3. Maturity Stage
The maturity stage is characterized by the company running like a well-oiled machine and operations have reached a predictable point. The company sustains itself and increases its capabilities. If things are going well, the company can either choose to expand with much bigger steps like buying more assets, or it may even be sold at a profit.
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4. Decline Stage
The decline stage is one which no company aspires for, because this would lead to its closure. It may reveal gaps in management, a state of irrelevance for the product, or a high level of attrition. It may sound pessimistic, but it is good to note this so that when early signs appear, steps can be made to avert it.
Steven Rinder is a leader is business development. In his spare time, he likes to run. For more about Steven, find him on Pinterest.