A seed stage.
The first stage of a new company is known as the seed stage.
During the seed stage, a company's founders seek investments to build their business.
These investments usually support product development, market research and business strategy.
That company attracted many angel investors during the seed stage.
Their company received impressive seed stage funding.
The first stage of a new company is known as the seed stage.
During the seed stage, a company's founders seek funding to develop their products or services.
The start up stage.
In the start up stage, a company establishes commercial operations.
During this stage a company has a management team, a business plan and a working product or service.
Companies in the startup stage usually begin earning revenue but do not make a profit.
Venture capitalists like to invest in startup companies because of their growth potential.
The growth stage.
When a company reaches the growth stage, it begins to make a profit.
It often expands its operations and workforce.
During this stage effective management and mature business model are necessary to maintain growth.
Many private equity firms have invested in that company and expect it to grow quickly.
The company enjoyed a rapid growth in sales in its growth stage.
What happens during the start up stage?
The company enjoyed a rapid growth in sales.
The company often needs to employ new staff quickly to cope with increasing demand.
The company enjoyed a rapid growth in sales in its growth stage.
The maturity stage.
A company reaches maturity when it has established a stable percentage of market share.
At this stage, the company's growth rate tends to be lower than the previous stages.
In order to boost growth, a company may expand into new markets or product categories.
For example, many Chinese smartphone companies in the maturity stage have expanded to India and Africa.
Efficient management can prolong the maturity stage of a business.
Companies can expand into new markets overseas to boost growth.
A company reach maturity when it had established a stable percentage of market share.
The decline stage.
When a business starts to lose market share, it enters the decline stage.
Poor management, increased competition, and shrinking market can cause a company to go into decline.
Unless action is taken, a company in decline could go out of business.
After changing its focus, Microsoft stops declining and tripled its stock price in four years.
They implemented a new market strategy to stop their sales decline.
Their sales suffered a huge decline due to technological changes.
What can cause a company to go into decline?
What happens to a company's growth rate during the maturity stage?
Their sales suffered a huge decline due to technological changes.
Unless action is taken, a company in decline could go out of business.