Stage I - Development:
Determining the business that you plan to create. What will it cost to bring this business to life? How much research have you contributed to your business and what value does it have? Is there a need for your product or service?
How many competitors are there? Know the best ones.
Stage II - Business Establishment
Considerations: Sole Proprietorship, LLC, Incorporation.
Where do you plan to establish your incorporation in Delaware (for better taxes) or Nevada?
For liability reason LLC looks more favorable. DBA (doing business as) what type - retailer, service or distributor. Fabricator, Manufacturer, Jobber. The accounting of your business has to be done with a weekly wrap upthen monthly for quarterly returns for taxes. Then at the end of the year your full yearly earnings in most cases a business can only show negative returns for a limited amount of time. If you plan to Incorporate a name for your business and website with photos of products or a listing of the services this should also be a consideration for stages 1 and 3 of the Business Cycle and continued to stage 4 for growth.
Stage III - Start up
As mentioned in the development stage of a business what is the cost for start up considerations? To mention a few: office space, office equipment, consumables, staff and utilities.
Stage IV - Business Growth
Allow time for growth most business depending if it is a product or service takes about five years (in most cases) to grow. Once your business begins receiving revenue for the service or product then you have to offset it with the overhead. This has to be a continued cycle of revenue then with expenditures you may be in the negative in the beginning but this normal growth pains. Then, as your business continues to grow your goal is to have your revenue meet your cash expenditure or pay outs. This is when it becomes a steady coverage. As your business grows in business then the initial investment is returned and captured then you are on the positive side where your revenue exceeds your daily, weekly, or monthly expenses. At this time, you determine a percentage to save for growth and expansion, or to use for unexpected business expenses, such as added equipment or staff, then repay it to your business fund with interest.
Stage V - Business Expansion
Depending on your growth process, and the time it takes from going to start up red to black and meeting all your expenditures is when you make the decision for expansion. Once you make more than you spend, you’re in the green (the good stage). This is when you allow a percentage of your excess revenue to expand. Considerations at this time is to determine what expansion is needed and or development. Once you show a constant growth in income and you have determined the cost of your expansion needs without affecting the normal business flow, this would be the best time for consideration.
Stage VI - Business Maturity
I would consider this your last business cycle stage maturity. This is when all your needs are met from the start up stage (the infant stage) of the business to the state of maturity towards growth achieved is in process. This is when you have established your business as a service or the product has been accepted in the industry, you are maintaining your steady customers, and creating new customers.
Maturity of a Business is dedicated to hard work and takes time to accomplish. To reach this point, all stages of the business cycle need to be taken into consideration. The time constraints are usually tested by trial and error, which is why it's very important to do your homework in the early stages of business. Your initial contribution and consideration of your business will have a higher chance for success.
At this point you can weigh the time it took to achieve your goal but never lose sight of your Finish line.
The goals of achievement will be difficult for each business entrepreneur in the start. Goals can be set for each business cycle and can be individually determined. For example let’s say that you have the capital and experience for a product or service that you would like to begin. You can make your goals aggressive, intermediate, or as you allow to contribute. Be honest with your goals on how much time are you willing to contribute, and how much of your savings are you willing to invest. Is your new business well thought out or just being hopeful it will all work out?
Many businesses have traveled the paved roads with the intentions to succeed.Your goals need to be written out allowing yourself time to review each area.Establish your goals with a start and finish date, or if you have to, establish them to determine the reason, and reset your goals. Make a scale to get to the finish line If you are at 0 % when you start, at what percentage do you want to accomplish by what date for each percentage (10 %, 20 % etc)?
What you are willing to invest your time or your money? In most cases, both. Your time is priceless, but if you utilize this time wisely you can ultimately achieve your goals by reviewing each business stage. Remember to set realistic goals. If they are not obtained you need to step back and huddle to determine the reason why they are not being achieved to reset them until you create a winning plan.
Then you can weigh the time it took to achieve your goal but never lose sight of your finish line because in business you sometimes have to move back 20 yards and kick to make that field goal.