There is a lot of planning that goes into starting any business. Stage one is the growing phase of the business during which the business plans and strategies are finally executed and the business organization comes into existence. This is the stage where the business is not generating revenue but trying to establish itself in the market and attract a stable set of investors and customers. This is the stage where the business has to invest a lot of resources in creating the basic infrastructure and then marketing and advertising itself in the market. This is the phase during which innovative ideas are encouraged, in order to establish a USP (Unique Selling Proposition) for the company. It is a difficult task to have a smooth sailing business, without any struggle right from the beginning since the early stage of business setup involves higher risks. The income in the first stages is always lesser than the investments and hence initial stage is marked by lower profit margins for the business.
Stage Two – Growth
Once the business passes the nascent phase, it begins to find their core customers. Stage two or the growth phase of the business is when the business establishes its niche in the market. This is the phase where the business owners start to establish their brand identity and generate brand loyalty within their customer base using sound marketing practices. Although the focus of this stage is to maintain the core customer group and build trust and goodwill amongst the customers. This stage is marked by a rise in consumer demand and a consequent requirement of increased inputs in terms of production, manufacturing, and general operations to keep up with the rising sales and continue growth. The growth phase is thus marked by increased sales, rise in profit margins and thus establishment of the brand name in the market.
Stage Three – Maturity
Stage three is the stage where the business reaches a certain maturity...