Business Life Cycle

The business market place is in a constant flux. Things such as technology, human capital, the demand on everyone's time, the company's financial needs is constantly evolving on a daily basis.
If you have ventured to Equity CrowdFunding, there is a very good chance that you and your business in looking for capital. It is our goal to give you the information you need to make the informed decision you should, to start the process.

There are seven (7) primary stages in your Business Life Cycle. At each one of these Life Cycles, the needs of the business are unique as are the challenges. 
From the time you decide to launch your company, Cash Flow will always remain in the forefront.

The seven stages of of your business are depicted below and each stage is described and identified further.

  • The seed stage of your business is when your business is just a thought or an idea. This is the very conception or birth of your new business.
  • Most seed stage companies will have to overcome the challenge of market acceptance and pursue its opportunity. 
  • Entrepreneurs have to be careful to not spread money, time, and resources too thin.
  • Early in the business life cycle with no proven market or customers, the business will typically rely on cash from owners, friends and family. 
  • Other potential sources include suppliers, customers, government grants and banks.

  • Your business has been born and now exists legally. 
  • Products or services are in production and you have your first customers. 
  • During the start-up life cycle stage, it is likely that you have overestimated money needs and the time to market. 
  • The main challenge is to not burn through what little cash you have. 
  • You need to learn what profitable needs your clients have and do a reality check to see if your business is on the right track.

  • Your business has made it through the toddler years and is now a "growing" child. 
  • Revenues and customers are increasing with many new opportunities and issues. 
  • Profits are strong, and depending on your particular business vertical, competition has started surfacing (if not already competing against you). 
  • The biggest two challenges the company is dealing with at this stage relates to the demand for more time and more money. 
  • Effective management is required and a possible new business plan. 
  • As an entrepreneur, you must learn how to train and delegate.
  • Your business has now matured into a thriving company with a place in the market and loyal customers. 
  • Sales growth is not explosive but manageable. 
  • Business life has become more routine - but you  can't just rest on your laurels especially since the marketplace is relentless and competitive. 
  • The business needs to stay focused on the bigger picture. 
  • Issues like the economy, competitors or changing customer tastes can quickly end all you have work for.
  • This stage of the life cycle is characterized by a new period of growth - into new markets - new distribution channels. 
  • It is during this stage of the business that you gain a larger market share and find new revenue and profit channels.
  • But moving into new markets also requires planning and research of a seed or start-up stage business.  
  • Focus remains on businesses that complement your existing experience and capabilities as moving into unrelated businesses can be disastrous.
  • Year over year sales and profits tend to be stable, however competition remains fierce. 
  • Eventually sales start to taper off and a decision is needed whether to expand or exit the company.
  • Search for new opportunities and business ventures must continue. 
  • Cutting costs and finding ways to sustain cash flow are vital for the mature stage.
  • This is the big opportunity for your business to cash out on all the effort and years of hard work. if not planned correctly, it could also mean shutting down the business.
  • Selling a business requires your realistic valuation of the business

Whether you've been in business one week or five years, an infusion of funds is always welcome. But what type of financing is best for your business? There are so many factors to consider - from the stage of your business to how much it'll cost to get the money - that just choosing a path to follow can be overwhelming.

To help you get through the noise and clear the clutter, we have paved the way and provide you with the different ways you can finance the growth of your business.