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In the business environment, business gets to begin from a point and progresses from one stage to another. It undergoes through four distinct stages. The ensuing processes constitute the life cycle of the business. These stages that a business passes get elucidated in detail.

Inception stage

It is a point in which the idea of a business gets conceived. The conception is then taken for deliberation, approval, tested, and launched. Once launched, the product is now developed for commercial use. At the stage, there are immense challenges of overcoming the acceptance in the market. The business strives to set and establish a niche. The structure of the business gets aligned, acquiring professional leaders who are going to lead the business in the right direction. It is here that there is a need for proper scheduling and strategies for the business to pick and get a sizeable market. There is a need for aggressive marketing so as to get the business known amongst the clients. Promotion and campaign are rigorous. The business employs that money for the owners for all its operations (Kozan, & Akdeniz, 2014).


Growth stage

It is the initial stage at which the business is getting to rise in the market. The characteristic at this point is that there is increased customer base, sales volume is high, and vibrant growth. The challenges encountered are money and time for venturing more to wider markets. There is an essentiality to come up with business plans that are attracting the available market, proper management, and aggressive marketing. The focus is on maintaining the client base that is already captured through quality products and services. There is a need for doing aggressive promotion. The company endeavors in getting involved in lobbying for grants, leasing, partnerships, and depending on profits as sources of money for business operations (Meng et al., 2013).


Maturity stage

The business at this point is well established in the market and competed favorably with giants dominating the market. There are customers loyal to the business; high sales volume is noticeable, and the existence of the business is routine. The stage gets characterized by competitiveness that is so aggressive due to many players in the market. The establishment is aware of the competitors, the strengths, and weaknesses. They employ the weakness as an opportunity to take on and create a leeway of venturing to unmet needs in the market. The tastes of customer need to be known since the preferences changes with time. It is done via conducting market research. It then allows the business to tailor the products and services to meet that changing preferences of customers. Furthermore, there is a need to undertake new ventures and diversification so as to get varied number of customers and get all clients in the market irrespective of age (Kozan, & Akdeniz, 2014).


Decline and exit stage

It is a point in which the company can no longer cope with changing demands in the market due to change in the prevailing conditions of the market, society, and economic conditions. There is a drastic decrease in sales, profits, and cash flow. The business owners are going to look for new opportunities in an effort to bring business back to normal. Owing to a drastic decrease is sales; the company will no longer be capable of sustaining itself but is forced to exit. There is a necessary to carry-out valuation of the business, sale and a plan for transition put in place (Olawale, & Garwe, 2010).

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