A business is simply described as an investment venture with a core purpose of making profits. These are established with ambitious plans and high expectations of dominating the market while maximizing profits in the due course. However, it’s important to note that, these are risky ventures. They can either succeed or fail in their operations which oftentimes is reflected in the amounts of profits or losses made over time.

When businesses start off operations. They begin off with some amount of capital that is acquired from different sources that may include loans from the bank, person’s savings, or donations. Any business that has just begun off operations has to undergo certain growth stages. These have to breakeven and this does not just happen overnight; it takes some time, patience, and other resources.

The following are the 3 main growth stages of a business;

The startup stage

At this stage, there is a need to establish and promote the business brand where People have to be made aware of the new business with its products and services it’s offering in their area, region, or country. This can be done through conducting extensive marketing of the business products and services.

Many businesses take long in this stage and some end up failing in this stage due to the pressuring activities involved. A business has to a certain whether it has enough resources to cater for the present market.

Before proceeding to the next growth stage, a business first seeks to break even. What is breaking even point of a business? This is when a business generates revenue from its sales that eventually covers up all costs involved in its initial startup. In simples terms, we can describe this as a point where the costs incurred are equal to the profits generated.

The growth stage

At this stage there is a need to be more creative and innovative that is through coming up with unique products and services that can outcompete the existing and ever-growing competition from other businesses in the same niche.

The business here can predict its revenue that it generates over the year due to the knowledge it has about its reliable customers and the consistency in meeting their demands.

There is business expansion that includes setting up different branches of the business in order to capture and cater to an ever-growing market. Increased production due to the increased demand for the goods of the business.

The Maturity stage

At this stage, a business is well established where people are well knowledgeable about its brand, its products, and services offered. The business here has a huge reliable customer base to which it keeps supplying its goods continually.

However Businesses here can either decline or be renewed. A business that is declining is characterized by delayed receipt of payments, high labor turnover. When an entrepreneur identifies such declining signals he should either plan for an exit strategy or employ new operational strategies in order to keep up with changing dynamics in the business market.

In conclusion, businesses go through stages of growth or development to eventually become well established and successful. It’s a process that consumes time, patience, and other continuous efforts. Businesses have to keep upgrading their operational strategies for sustenance in the ever-changing economic world.