A startup or a small business has five stages of growth. As it sails through these stages, it will change in terms of size, brand recognition, security and stability to name a few parameters.
When it comes to economic activity, recession and depression can greatly affect the stability and success of small industries. The terms for the core phases of development may differ across domains but the main idea remains the same.
Let us look into these phases and the challenges in each to better understand its growth curve
Startup/launch/seed phase: Here is where your company begins its journey. This is definitely one of the most crucial phases of any small industry or startup. According to a report by Bloomberg, 80% of businesses fail in the first 18 months during the seed phase. This can happen due to a whole lot of reasons like leadership breakdown, poor understanding of the market/customers and inability to create an efficient business model. In this first stage, you will be scurrying around for financing for managing cash flow and acquiring a place in the market. Here are some of the challenges faced by entrepreneurs in this stage
Not being able to prepare an effective business model
Creating a practical budget plan - You may have to finance out of your own pocket too.
Not enough number of employees
A lot of time is wasted in trial and error while establishing a customer base
Customer acceptance is key here. If you cross the obstacles of this stage, it is very likely that your business will not fail, going by statistics.
この記事は Small Enterprise の May 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
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この記事は Small Enterprise の May 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
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