Running Head: BUSINESS AND MANAGEMENT 1

Business and management

Name:

Institutional Affiliation
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In the lifecycle of a business organization, the most fundamentals part happens to be the growth

phase. The phase herein determines whether the business will prove to be successful or not.

Generally, there are four stages of growth that a company might undergo and each stage depicts

varying characteristics. The cardinal objective of the essay herein is therefore to provide an

accurate discussion that encompasses the various features in the four stages of growth that

business entities undergo. The piece is subdivided into the various stages to help in providing

concrete and easily understandable data.

1. The start-up stage.

The start-up stage tends to be one of the toughest stages of any business entity. In fact, it is

no secret that the most significant percentage of business that ends up failing do so in this

stage. The reason for this being that as much as it is exciting to set up one owns businesses,

the challenges and obstacles to success are often numerous. The start-up stage is mainly

characterized by the extremely high likability of failure and losses. The proprietor of a

business in this stage is most likely to be funding the organization with the money. In the

event of failure, they are the people who end up most affected by the losses incurred. It is

during this time that an entrepreneur needs to understand significantly the business

ecosystem in which they plan to invest in. Understanding the business ecosystem plays a

vital role in the start-up phase of development as it is during this period that the fate of the

enterprise is decided. Some notable examples arising from the characteristics this phase

include; limited resources (Money and staff), weak cash flow, and difficulty in the pricing of

products among many more (Ruby, 2014). Companies that put a lot of consideration and

effort in the mentioned stage often do well if they triumph the tribulations of the start-up

phase.
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2. The ramp-up stage.

During the ramp-up phase is when the business’s momentum starts to gain a steady

momentum. The company starts to gain clients and the development is now visible through

the cash and profits flowing in. In this stage, the entrepreneur is already familiar with the

business ecosystem and has designed a practical and strategic business model. Any prudent

entrepreneur understands that a business model is pivotal in determining the success of any

business. During the ramp-up stage, the entrepreneur is usually familiar with the client's likes

and dislikes. The business model comes in handy during this stage as it helps the business to

capitalize on the clients likes. For example, the business model comes in handy in the case of

assisting McDonald's to meet its client’s likes. In the USA the consumers prefer food that is

not spicy, thus the company does not offer sauce in the American market. However, in the

Mexican market, McDonald's provides sauce as the clients there prefer food that is spicy

(McCubbrey, 2009). All in all, the second stage is majorly characterized by the need to keep

up supply with demand.

3. The expansion and maintenance stage

The expansion stage entails the period where the hard work and toil seem to be paying off. It

is also the phase where the business need to maintain its gained status. The entrepreneur in

the stage herein usually makes a lot of profit as the business has already made a name for

itself. This phase requires the entrepreneur to show rationalism and soberness while making

decisions on behalf of the business enterprise. This phase is also characterized by the interest

of investors and shareholders in investing in the business. The business model acts as a

necessary foundation in this stage as it is crucial in the maintenance of the business

(McCubbrey, 2009). As stated above, this phase needs shrewd decision making and
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performance of duties with the aim of ensuring the business maintains its acquired stature.

The entrepreneur or the administrative department should provide operational efficiencies,

wise planning and execution in the business to retain the success attained.

4. The maturity stage.

This is the final stage in the growth and development of any business organization. The

maturity phase is characterized by little rapid and spontaneous growth and change to cope

with in the business setting. It is also characterized by more employees and a much large

budget that keeps the business running smoothly. In this phase, the entrepreneur is usually

advised not to relax in their activities of running the organization. In fact, they are

recommended to ensure that they portray all the quality and needed traits in a successful

entrepreneur. These traits will help the entrepreneur to remain innovative and hence ensure

the business maintains its sales and clients (Ruby, 2014). It would be sad if a company that

had done so much to develop would fail at its maturity stage. Like the case of the Toys are us

retail chain. The company was in existence from the year 1948-2017. It was such a shame

that the failure of the business to innovate led to its fall.

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References

Alex Ruby, (2014). The four stage of growth for every business. FusePhase Inc. Retrieved from:

http://www.fusephase.com/four-stages-business-growth/

Donald J McCubbrey. (2009). Business fundamentals. Switzerland. Global Text. Print

Kuratko, D. F. (2016). Entrepreneurship. Cincinnati OH: Cengage Learning.

Weinfurter, D. J. (2013). Second Stage Entrepreneurship: Ten Proven Strategies for Driving

Aggressive Growth.