Business Development: What Are the Stages Involved?
Majority of the business involves 5 stages of growth. Below we have discussed the basic features of each of these 5 stages.
Stage 1:
Conceiving an idea:
You cannot get involved in any venture without conceiving an idea. An idea can be described as a seed, which is the reason why the tree of business starts developing. The better will be the quality of seeds i.e. ideas the more flourishing will be your business. While conceiving a business idea a number of factors are considered which include the industry to which the business idea is rooted, accessibility of resources, the competition level, customers, market conditions etc. Financial estimations are also prepared for having an idea about the degree of investments needed to start the business, the earnings one can expect from the business and the ratio between the two.
Stage 2:
Materializing the concept:
This can also be described as the start-up phase. In stage 2, necessary measures are taken to bring the idea conceived into existence. The parties involved work to complete all the legal formalities for instance incorporation, registration etc depending on the type of business they are going to start. However, before completing legal formalities, production factors like capital, labor and land must be arranged by the business owner. The business gets ready during this phase and often gets the first contract signed.
Stage 3:
The growth period:
During this phase, there’s a growth in the rate of production of the business. Commercial activities associated with the business for example storage, purchase of raw materials, transportation also experience a steep growth in stage 3. Customers start knowing about the products and services offered by the company and also begin to place regular orders.
Stage 4:
Establishing and expanding the business:
In this stage, the business tries to acquire as much market share as possible. First the business owners try acquiring maximum market share of their region and then if successful try to expand their business further.
Stage 5:
Gaining maturity and suffering from decline:
This stage comes after the business spends some happy years of great brand reputation and economic returns. During this stage, ideas used by this business is often understood and used by other venturists, due to which the original business may suffer from slight or significant decline in the market share enjoyed by them.
Stage 1:
Conceiving an idea:
You cannot get involved in any venture without conceiving an idea. An idea can be described as a seed, which is the reason why the tree of business starts developing. The better will be the quality of seeds i.e. ideas the more flourishing will be your business. While conceiving a business idea a number of factors are considered which include the industry to which the business idea is rooted, accessibility of resources, the competition level, customers, market conditions etc. Financial estimations are also prepared for having an idea about the degree of investments needed to start the business, the earnings one can expect from the business and the ratio between the two.
Stage 2:
Materializing the concept:
This can also be described as the start-up phase. In stage 2, necessary measures are taken to bring the idea conceived into existence. The parties involved work to complete all the legal formalities for instance incorporation, registration etc depending on the type of business they are going to start. However, before completing legal formalities, production factors like capital, labor and land must be arranged by the business owner. The business gets ready during this phase and often gets the first contract signed.
Stage 3:
The growth period:
During this phase, there’s a growth in the rate of production of the business. Commercial activities associated with the business for example storage, purchase of raw materials, transportation also experience a steep growth in stage 3. Customers start knowing about the products and services offered by the company and also begin to place regular orders.
Stage 4:
Establishing and expanding the business:
In this stage, the business tries to acquire as much market share as possible. First the business owners try acquiring maximum market share of their region and then if successful try to expand their business further.
Stage 5:
Gaining maturity and suffering from decline:
This stage comes after the business spends some happy years of great brand reputation and economic returns. During this stage, ideas used by this business is often understood and used by other venturists, due to which the original business may suffer from slight or significant decline in the market share enjoyed by them.
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