Discuss in details the phases in the growth of a firm/business

      

Discuss in details the phases in the growth of a firm/business.

  

Answers


daniel
1.Pre – Start Phase
This is the preliminary stage for the business. Here, the entrepreneur does a lot of ground work to assess the viability of the venture he is about to get in to. He will carry out due diligence to ensure he has taken all important factors into account before setting off the business. He will incur expenses to execute some of these important activities. He may for instance require the services of a legal representative to acquire land. He may also hire the services of a surveyor if he wants to build his own premise. If he will hire personnel to assist in running the business, he should ensure that he has sufficient funds to pay them for at least 6 months. He may need to get a loan to do this.

2.Start - up Stage
At this stage, the entrepreneur has already set the business up. The business is operational
despite the set backs that befall all businesses that start up at the initial stages. The entrepreneur realizes that he may need to make adjustments in order to survive. He may see the need to insure the property in case he hadn't, he may also realize that he does not need an extra staff hence he may cut down on that, sales may be slow in picking up, so he may decide to come up with new marketing strategies, he may see the need to have proper records for tax purposes e.t.c

3.Early Growth Phase
During this phase, the business will experience rapid growth as customer needs become the
main focus for the entrepreneur. It is at this stage that he will realize there is need to gain a competitive edge in order to make more sales. The entrepreneur at this stage may think seriously about automating his operations, hiring professionals like accountants, perhaps even expanding the business. The signs that these requirements are necessary will be felt by the growing need to meet the increasing and dynamic needs of the customers.

4.Later growth phase
This is the phase that determines whether the business has managed to meet its long term
objectives and a period to assess how successful the short term objectives have been met. At
this stage, the entrepreneur is more concerned about corporate governance issues and how this
impacts on customer needs. He will also be concerned with the management of the business in
various departments such as finance, sales and marketing e.t.c. The entrepreneur will have his
sights on a higher level of competition with other firms that belong to a higher circle, hence he see the need of turning the business into a public limited company in order to compete as such levels.


skymucdan answered the question on October 11, 2017 at 08:36


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