The 9 Stages of Starting and Running a Business

Starting and running a business in Melbourne involves going through a labyrinth of different stages that must be treaded carefully for success. An entrepreneur’s run to the top can go awry if they are not focused on the goal or lack the skills to pass each level. The key to overcoming roadblocks and streamlining the process is to have a structured plan until the target is accomplished.

Thus, if you plan to start-up and run a business, you need to know the strategies that will help you cross each stage with flying colours. The business owner must be prepared with all the required assets and resources that are needed for every level. So, here is a rundown on how these stages can be conquered without fail.

1. The Seed Stage

The moment the entrepreneur comes up with a business idea, it marks the beginning of the business lifecycle stages. The first stage is developing the idea and understanding its viability. So, the founder needs to determine whether the customers need the product or service envisaged by him or not. They need to test their demand through market research and focus group surveys.

The next step is to make a business plan that defines the vision, mission, goals, product, customers, competitors, financial projections, structure, employee roles, etc. The feedback from the target market helps refine the concept and add new functionalities to the product to make it more valuable for the audience. It acts as a roadmap for the journey and helps secure funds for the venture.

2. The Start-Up Stage

The entrepreneur needs to get all the permits, registrations and licenses to set up the business and find an ideal location that can be leased. After everything is finalised, they need to work on the fit-out, furniture and fixtures to prepare for the employees and customers. The next step is to identify suppliers, procure the required stock and supplies, and begin the production work after hiring employees.

Make sure you comply with all the legal obligations and get professional help for accounting, legal documents, insurance, and other work. Also, do not spend more than you have allocated in the budget and start the branding and marketing process.

3. The Introduction Stage

At this stage, the seed capital is exhausted due to the endeavours of the launch period and the marketing of products. In this phase, the business needs to focus on building a solid customer base because the sales are low, and the cost of promotions is high. Thus, there will be no profits, and the business will be looking at reaching the breakeven point soon. Thus, they must price the product correctly and pay attention to distribution and availability.

Customers must get acquainted with the brand and influenced to purchase the product. It requires working on brand awareness and positioning the business as a credible and reputed entity. Digital marketing, influencer marketing, local marketing, print and radio ads, signage, visibility across platforms and exceptional customer service can work wonders to grab the attention of the audience.

4. The Growth Stage

As sales improve, the business crosses the breakeven point to enter the profitability zone. It is described as the growth stage because the venture generates profits and gains a significant market share. The business owner can start taking a salary and reap the rewards of the hard work and investment.

Many budding entrepreneurs purchase a business for sale in Melbourne that is in its growth stage to leverage its potential and gain quick success. To keep growing, entrepreneurs can get more investments at this stage from angel investors or venture capitalists. They must use the surplus cash to create cash reserves, hire more talented people and lease quality equipment that will aid in scaling up the business.

5. The Established Stage

Maintaining the growth momentum is necessary to generate a positive cash flow and net profits. The entrepreneur has to identify new opportunities and changes in customer buying behaviour to adjust his offerings and exceed the expectations of the buyers.

They must continue market research and competitor analysis to stay ahead and develop new growth objectives and strategies. They should be flexible enough to adopt new technology and industry trends.

6. The Expansion Stage

Once the business is well-established and has satisfied customers for a considerable period, it is ready to enter the expansion stage. In this period, the business owner has accumulated a significant amount of capital that can be utilised to expand.

Usually, scaling up is achieved through penetration into new markets, introducing a new product line, acquiring another small business, starting an e-commerce channel for the business, partnering with another brand, etc. Other low-investment methods include customer loyalty programs, referrals, franchising, international shipping, etc.

7. The Maturity Stage

During the maturity stage, the business stabilises, and there is no further growth. It is a period of stagnation when any more advertising or expansion tactics fail to increase sales. It indicates the saturation limit of the business, and at this stage, it is generating the maximum profits that it can with the highest efficiency.

Most long-standing successful businesses operate in this stage of the business lifecycle. The business continues to maintain the same profitability and income level, and this stage can go on for several years. It does not get disrupted unless something goes wrong with the proven policies and procedures.

8. The Decline Stage

As the name suggests, the decline stage signifies the downfall of sales and revenue. If it continues for a long time, the business goes into losses and becomes bankrupt. Thus, entrepreneurs need to be vigilant about the thinning of the cash flow. They must make quick decisions to revive the business when they notice a pattern of continuous low sales and profits.

The most preferred ways of revival are reinventing the business by eliminating its weaknesses and improving its strengths. Many business owners use rebranding and innovative marketing strategies to woo the audience. They work on pricing, creative packaging, better distribution, and ground-breaking advertising to make a comeback.

9. The Exit Stage

Entrepreneurs have to exit the business they started when they wish to retire or want to pursue a different career. They can plan to put up the business for sale in Melbourne and find a qualified buyer through a careful selection and negotiation process. It is the best way to secure your retirement by generating a significant return from your investment.

Some business owners also pass on the control to someone in the senior management by developing them for the role of the leader. It is known as succession planning.

Conclusion

Starting and running a business is a roller coaster ride that takes you through myriad milestones. Make sure you are prepared to deal with the obstacles on the path to reach the destination without delay or disturbance.