challenges : When the business is in the start-up stage, it is likely that the need for money and the time to market is overestimated. The main challenge in this stage is not to burn through the little cash the business has. It is necessary to learn the profitable needs of the client and to do the reality check to see the business is on the right track. How to tackle these challenges : Develop the product or service. Be prudent and use resources, particularly financial ones, carefully. Establish written policies and standards for every business function. Example: Review your business plan and develop procedures for each function like a marketing plan, operational plan, financial plan, human resources plan so everyone involve knows how to put the business plan into action. 3. Growth stage: The business has made it through the initial stage (the start-up stage) and is currently in its growth or survival stage. This stage involves a business picking momentum since the reputation is successfully established. Remarkably, the business achieves stability with increase in demand being realized. Therefore, the entrepreneur is required to establish strategies such as increasing work force this include bringing in more people or employees, and acquiring more resources to handle the business demand. This entail time and money resources because the business is adding new customers and generating the revenue consistently. This revenue will help to pay the operating expenses and to open the new opportunities for the business. The business in this stage may be operating at the net loss or could be maintaining a healthy profit. At this point, the competition starts surfacing. Businesses in this stage are likely to realize increase in sales or profits, which result in establishment of an effective market visibility (Machado, 2016) An example of businesses in the growth stage is a franchise restaurant, which were once small food kiosks. Alteration shops that grew from a single venture are another example of a business that has undergone transition from start-up to growth phase.
Businesses in this stage experience growing pains, which should be addressed appropriately. Several features characterise this stage Customer awareness of the business and what it offers increases. Business operations generally improve resulting in cost savings. increased sales may also result in economies of scale. distribution channels& marketing The business benefits from better management having learnt from earlier mistakes. It becomes easier to obtain finance. Staff levels increase allowing for specialisation for some individuals. Challenges; The biggest challenge at this stage is dealing with the regular variety of issues bidding for more time and money.
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