There are so many things and factors to consider in putting up a business. While most business consultants immediately delve into topics of capital, investment, and other strategies, we firmly believe that anyone should know the basics. Here’s what you need to set expectations of having a business and the struggles or challenges of transition from one phase to another.
The start-up phase means you’ve passed the preliminaries of having a business set up. Wake up. Your firm is now more than a dream or an idea. At this point, your organization should have been legally listed, with its name and logos. Your products or services are now available to your customers.
Hurdle 1: If your business is still at this stage, you may have had some overlooked your budget and needs. Make sure you don’t spend what you currently have. There are more needs to arise in the future. Also, check your progress as frequent as possible.
Reaching this phase means more customers are bringing higher revenues and more opportunities for development and concerns. You may feel a tag between profit and competition.
Hurdle 2: While your company undergoes this stage, you may have to review your strategies and general business model, with a focus on bookkeeping and a more extensive financial management.
While sales and profit imply success, growing competition could also arise. You may end up doing all means possible to keep your products and services in the market, through the social media and other markets.
Hurdle 3: Plateau in profits and sales which can include negative cash flow without proper management and strategies.
This phase is make-or-break of your hard work, or lack thereof. Your business is now either up for sale or closure.
Hurdle 4: Selling your firm under a practical market value that meets current prices. This stage feels like binary options. It’s either you win or lose.
That concludes the business life cycle in four stages. Some say there are seven to account for those areas in between. Prepare yourself for these, especially the last one.