FOUR PHASES OF BUSINESS EVOLUTION
The evolution of all successful businesses, from the smallest start-up to the even the largest multinational corporation, move through four distinct phases. Each of these phases reflects the maturity of the business, and the specific drivers which will enable it to achieve the next level. The business skills and experience required in one phase rarely reflects those that are required in the fully evolved corporation.
The four phases of business evolution are:
Incubation: This phase reflects the initial inception of a business idea or concept, the development of that idea into a viable business model, and the creation of initial prototype of product and prove the concept with a closed customer community.
Acceleration: Once an initial concept has been developed the requirement to move this to a revenue generating business becomes more urgent. The business needs to bring in high-energy sales and marketing programmes, define business structure and procedures to allow the company to scale, whilst delivering profitable revenue.
Cultivation: Having established a firm foundation of defined product/services, a credible, profitable and recurring revenue base, the business looks to maximise its revenue sources from existing clients, with new business contributing a lesser percentage of total revenues
Consolidation: Once a business is an established and mature enterprise, the management focus moves to revenue protection and cost reduction, endeavouring to stimulate revenues further, with lower cost of sales to drive profitability.
With many established companies, there may be a number of these phases running in parallel for different divisions or products.
During each of these stages they may be requirement to raise investment.
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