Stages of business growth constitute the most important stages in the life of a business and it is very crucial that a company should efficiently manage the different stages of growth. A business develops from the stages of introduction to maturity and then it is reintroduced to the world again. One has to handle various stages of growth carefully, to avoid any mistakes – minor and major. Taking simple and constant care can help you avoid problems and you can be free from tensions and headaches. During the growth of a business you may see different phases such as high profits or low profits, or low losses or even high losses. And, at times you may even see the popularity of a product declining.
Q. Are you facing problems in managing the different stages of business growth?
Q. Are you aware of the different stages of business growth?
Here are some tips from Kuza Biashara, on how to manage the stages of business growth:
It is the introductory phase of the business and in this stage the business is in the set up stage. It is newly introduced into the market. This stage deals with the establishment of infrastructure, products, services, appointment of employees, and marketing your products and services. This stage will witness a lot of spending, as you have to do all your investments in this stage. Do not expect or look for profits in this stage. But plan your budget in advance and do not exhaust your entire budget on marketing alone.
A small growth in the business is seen in this stage. Here, the products and services are known only to a select number of customers. When your products are in demand, you may also see small amounts of profits. Once you start getting profits, try to manage your finances systematically. Check the status of your receivables and payables. Your products may be in demand, but do not make the mistake of overproducing your products.
It is the most crucial stage of business growth. Here your products become the best in the society. Customers just buy your products because they are very much in demand. In this stage, it would make sense to allot finances for increasing the production of your products or services. Once your business reaches this stage, you should be earning profits and all your payables should vanish from your accounts. It is from this stage that you should start saving.
This is the most difficult stage of business growth as the demand for your products starts to decline. Therefore, remember not to overproduce your products as it could cause many complications.
Reintroduction of your products
Once your business is out of the declining stage, it is very necessary that you re-introduce yourself and your products to the society again. You will have to spend money, to re-market and remind about your products to your customers. Remember, you may have to spend money for reintroduction of the product on campaigns and advertising. It is a must as only campaigns and publicity can help you bring back profits to your business.
A business develops from the stages of introduction to maturity and then it is reintroduced to the world again. One has to handle various stages of growth carefully, to avoid any mistakes – minor and major. Taking simple and constant care can help you avoid problems and you can be free from tensions and headaches. During the growth of a business you may see different phases such as high profits or low profits, or low losses or even high losses.