BUSINESS ROUND OF A COMPANY

1. Stage "Sowing":

That is the stage where the business exists only in thinking or in other words just ideas, business ideas. This is also known as the "birth" period of a new business. Most companies at this stage will need to overcome the challenge: accept the market and pursue a particular niche. During this period, business owners should be careful not to spread financial resources too thin.

The focus of this stage is how to choose a business opportunity that is suitable with the skills, experience and passion to start a business. And let's not forget the other key takeaways: decide to choose a business ownership structure, get professional advice, and make a business plan.

Financing development during this period can be difficult to locate. Because at this stage, the company will have to find its own markets and customers. They can rely on loans borrowed from owners, friends, family, or individual investors. In addition, the company can also use capital from other sources such as suppliers, customers, other amounts.
2. Phase "Inception": 

The business has just been formed and legally exists. The products and services are now in production and already have early customers. In this stage of business, capital requirements and time to search for markets are highly appreciated. And the fundamental challenge here is not to let even the smallest amount of money slip away. Business owners must learn to "realistically" survey customer needs that can be profitable and make sure the business is on the right track.

The start-up phase requires the business to establish a customer and market base with controlled and monitored cash flows. Funding to support growth during this period can be called in from owners, friends, family, suppliers, customers, loans or grants.
3. Development stage":
At this stage, the business has gone through "toddler years" and is now developing into a real "child". Increasing sales and customers mean the emergence of new opportunities as well as new challenges. Profit growth leads to increased competitiveness.

Businesses' growth life cycles are based on their own operations in a more standard way in response to increasing sales and customer volumes. Therefore, businesses need to apply better management systems, calculation methods and operations. At the same time, enterprises also need to find and recruit employees who are capable of handling problems that arise in the business process. Business capital can take advantage of during this period are loans from banks, profits, partners, grants and rental options.

4. Phase "Stable":
During the setup phase, the company's business seemed to be "ripe" and thriving with the number of loyal customers taking a place in the marketplace. Sales growth is not as explosive as it used to be but remains under control. Business also becomes a "habit" with processes in place to ensure consistency and long-term development of the company.

At this stage, the company can "take a break" and be satisfied with its achievements. The company owner has worked hard and also needs to relax. However, the marketplace is extremely cruel and fierce and highly competitive. Therefore, the company needs a stronger fulcrum in the larger image. Issues such as economic factors, competitiveness or changes in customers' market trends as well as trends can quickly make all of the above efforts of the company become "a success".

To be able to compete with the capital market, company owners will need better, larger-scale business operations, automation technology and equipment innovation to improve business productivity. Funding for this period can come from profits, bank loans, investors and other amounts.

5. Phase "Expansion":

New growth in new markets and distribution channels were conspicuous basic features during this period. This is the period where small business owners choose to capture larger shares of the market share and seek new revenue streams and other profitable business channels. Expanding into new markets requires research and planning for the business at the "seeding" and "start-up" phases. Business owners should focus on the risky businesses a bit. This will enrich their own current abilities and experiences.

Moving forward into unrelated new businesses can be the way to challenge dire challenges. Specifically, enterprises should add new products or services and launch existing markets or expand existing products and services into new markets, different types of customers and or specific markets. towards.

6. Stage "Depression":
Changes in market, social, and economic conditions can reduce the number of sales, so profits will decrease. This problem can make many small companies go bankrupt, dissolve companies faster because companies in this period will have to face many challenges such as declining profits and sales, cash flow. Save may fall into a deficit. The biggest problem is extending the time it takes for the company to support this sluggish cash flow.

The employer may begin to wonder if it is time to move to the final stage of the corporate life cycle - the abandonment (disbandment) phase. They should also look for new opportunities, new business ventures. Measures to cut costs and find new ways to expand the cash flow are urgent and necessary jobs for this period. Funding can be raised from suppliers, customers, owners.

7. Phase "Breaking Up":
This period is the time when an entire year of hard work and hard work goes into the co-start-up business, or can be simply understood as ending the entire business. Closing, dissolving or transferring the company is unavoidable, requiring a thorough assessment of the company's situation. Years of hard work to build a company are sometimes difficult to compress to assess the actual situation to decide what is the true value of the company (the company's position) in the marketplace. in.

If a company owner starts looking for a way to close or dissolve the company, he will face challenges related to the financial and psychological problems of loss. It is essential to having an authentic and professional company value. The company owner should also consider operating, barriers to competition and how the company can manage it to satisfy and satisfy customers.

During this period, it is very important to establish a legal purchase agreement with a capital transfer plan. And the capital source for this stage is the business evaluation partner. Financial advisors and accountants can come up with the best tax strategy to decide whether to sell or close or dissolve a company.

ATTENTION:

The business life cycle stages will certainly not happen sequentially. Some businesses are newly established but move from start-up to disbandment very quickly. Others may not go into the expansion phase and just stay stable. Great success or disastrous business failure is dependent on the entrepreneur's talent to adapt to the changing life cycle.

What they should do is focus and apply measures to help the company get through the tough times.