Business Stage Indicates where the organization is in development. Below are our definitions of the various stages.
Idea / Business Inception
This is the very beginning of the business lifecycle, before your startup is even officially in existence. You’ve got your business idea and you are ready to take the plunge. But first you must assess just how viable your startup is likely to be.
Business Model Development
At this stage, you should garner advice and opinion as to the potential of your business idea from as many sources as possible: friends, family, colleagues, business associates, or any industry specialists you may have access to. You will need assistance in developing your business plan, financial projections and revenue models.
Proof of Concept
In some ways, this is the soul-searching phase. It’s where you take a step back and consider the feasibility of your business idea. Identifying who is your customer, competition and impediments to bringing your product or services to market. If it’s a tool or product, has it been tested? Do you have a prototype?
Market Entry
At this stage, now that you have thoroughly canvassed and tested your business idea and are satisfied that it is ready to go, it’s time to make it official and launch your startup. Do you incorporate? What are your human resource needs? What taxes and insurances am I responsible for?
Growth & Expansion
If you’re at this stage, your business should now be generating a consistent source of income and regularly taking on new customers. Cash flow should start to improve as recurring revenues help to cover ongoing expenses, and you should be looking forward to seeing your profits improve slowly and steadily.
Long-Term Stability
Having navigated the expansion stage of the business lifecycle successfully, your company should now be seeing stable profits year-on-year. While some companies continue to grow the top line at a decent pace, others struggle to enjoy those same high growth rates. Do you push for further expansion or prepare an exit strategy?
