Humans grow from babies to infants to kids, and then to teenagers and youths before developing into full adults and lastly to elderly or aged folks. Businesses likewise have developmental stages that they must all pass through before becoming what they are, but it must be pointed out that some may experience stage one and two at the same time or jump from stage one to three depending on its resources, scope and industry.
New businesses trying to enter a new market or young business still facing teething problems are battling birth developments are still in the birth stage. Such businesses are like infants or kids who are just starting to see life and the world for what it is. They are starting to have a sense of self and to develop survival strategies needed to overcome their position and grow into the next stage of development. Old businesses launching new products or services in new markets could be in this stage.
Consolidation and Expansion Stage
This is the teenage and youthful age for humans where they experience maturity of body organs; it is the stage where a business is experiencing phenomenal growths and rapid development in all sides. It is the period when products and services are selling fast in the market because they are accepted by customers and they can’t wait to get more. It is the period when businesses try harder to meet the needs of its growing customers by consolidating its market position and expanding to other territories. It is also the period when businesses starts planning for diversification of products and services to serve a larger market share.
This is the age of adulthood in humans, an age when humans marry and make a home and achieve aspirations. Also in business, this is the period when ventures develop new policies and strategies that stem from its ongoing market success to serve newer markets. It is the period when a business has grown considerably big and needs nothing better than diversifying into new areas of dominion. Here a business feels its market is saturated and wouldn’t want to put all their hopes on a single performing product or set of patronizing customers; the business must cast its net wider to protect itself and grow bigger in other markets.
Decline and Renewal Stage
In humans, this is the stage of being elderly and old and dying. Every business or product has its lifespan, but to avoid running out of business, an entrepreneur must devise ways to repackage old products and add newer values to prolong its market value; while an aging business must seek for ways reinvigorate itself by acquiring newer business, going into mergers, and acquiring newer customers to remain in business. A business and products must continually survive old age when sales are declining, and this they do by renewing the values of the products and the company’s structures to meet the ever-changing needs of customers in a competitive business world.
Article by Diana from Entrepreneurshiply.com