See how businesses work from their start-up phase to the growth phase.

They say everything that can grow will grow provided we nurture that thing with the proper requisites. When an individual decides to set up his or her enterprise, he or she enters into “business cycle”. It doesn’t matter how the decision to conduct the business is taken, the ultimate endeavor of the entrepreneur is to make the business a big hit. However, this is not magic that happens overnight.

Several phases lead to the moment of success. Through the journey of growth, an individual who has launched the start-up experiences everything from the birth of the start-up to the success of the business.

Every next level brings new and sometimes difficult challenges that the entrepreneur has to learn to cope up with, to make the business survive all the odds. They say human life survives all odds, so does the business life. So, the entrepreneur sees, faces and survives it all.

Following are the stages of a business from being a start-up till its maturity:


The start-up phase is usually seen as the riskiest phase in the entire business lifecycle. Once the idea of the business is thoroughly tested and successful, it is the time to make the things legally approved. Products and clients are in line and you are ready to step in.

The real challenge faced in this phase is cash burnout in which the cash requirements are overestimated. The reason for the overestimation of cash is trying to capture the customer base and adaptability; shaping and reshaping of the product according to the feedback received from the clients.

Growth and development

The second phase is the growth phase. Once you reach this phase, this is the evidence that your business has a steady source of income and is taking new clients consistently. The real challenge faced in this phase is handling problems like the client’s management, time and competition.

The business owner must start noticing the improvement in the cash inflow as well as cash outflow with of course an upward movement in the income.

Establishment phase

Once you reach this phase, this shows that your business is successful in thriving a cut-throat competition in the market. For a successful business owner and their employees, the business becomes more of a lovely place than just a workplace.

But such short term success must not make the owner shift his or her focus from the bigger venture.

Expansion phase

It is such a phase in which the growth of the business is characterized into new markets and distribution channels. Being an entrepreneur, you need not poke your nose into petty matters since there will be employees assigned for those tasks.

At this stage, the business is marked by rapid growth and expansion in revenue, income, and cash flow.


The sales and profits may remain stable over the years, but competition keeps on increasing. Here, the entrepreneur faces the dilemma of having to choose between expanding the venture or continuing it as it is.

Hence, these are a few steps that an entrepreneur experience during the lifecycle of his business. But these steps are not necessary to be a part of every start-up. The phases may shuffle as per the situations of every business.

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Sudhanshu Malik

I am a content writer with 4 years of experience

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