The business growth phase usually occurs during or after the first few years of operation of a company. The previously established business plan begins to generate tangible profits during the BD growth stage
Fremont, CA: Business development, abbreviated as BD, is commonly defined as the relationships, clients, and markets that are used to create long-term organizational value.
Any business owner can attest to the fact that starting and growing a business is not an easy task. Understanding the four key stages of business development, also known as the business life cycle or business lifecycle, is one way to improve your chances of starting and running a successful business.
It is important to know the stages of the business life cycle for everyone, whether they are a new business owner or an experienced business development professional. Each stage of the business lifecycle presents unique challenges that frequently necessitate innovative solutions.
However, identifying where a corporation is in the business life cycle makes developing a strategy for increasing business profitability and success much easier. The important stages of the business lifecycle are as follows:
Growth
The business growth phase usually occurs during or after the first few years of operation of a company. The previously established business plan begins to generate tangible profits during the BD growth stage.
At this stage in the business life cycle, a growing company may have a solid customer base as well as a market share presence. Another important observation made frequently during the growth phase is a significant decrease in employee turnover rates.
Although it is all too easy for business owners to become swept up in the excitement of business growth, it is critical to maintaining priorities. As a result, the growth stage is an excellent time to engage in the following activities:
• Business model or business plan adjustments
• Sales and demand forecasts
• Cash flow analysis
• Exploration of business growth opportunities
Maturity
It is not uncommon for business owners to be overconfident during the maturity stage of the business life cycle. Both the customer base and market share presence are typically exemplary during the maturity stage.
Control over the customer base and a strong market share presence makes it highly unlikely that a new business will threaten the success of an established business right away. Aside from a reduction in competition risk, the maturity stage is frequently accompanied by consistent cash flow and rising employee retention rates.
However, there are still risks that businesses face as they mature. Stagnation and a lack of continuous growth are widely regarded as the most serious threats to mature businesses. Rather than remaining stagnant, the maturity stage provides an excellent opportunity for business growth and expansion. During this stage of the business life cycle, both exploring new markets and developing new products for an existing customer base must be considered.
