• Step 1. Concept. Every business begins as an idea.
  • Step 2. Implementation. Within six to twelve months that idea will work or it won’t. If it doesn’t, then start again with another idea, or a new approach to the existing one.
  • Step 3. Growth. If the idea does work, then it grows and starts to reap financial rewards.
  • Step 4. Maturity. This is when the idea is no longer new, the growth slows, and then eventually stops.
  • Step 5. Death. Welcome to the Business Life Cycle.





There is a very important reason why you need to be aware of this cycle. There is an expectation that a business will grow and reap rewards instantly. This is not the case. It takes between one and three years for this to occur. That’s if everything goes to plan and you work hard to make it happen. Patience and persistence are key qualities to have. A little luck along the way never hurts but don’t rely on it.

The most exciting part of the cycle is the growth phase. This is where you can pay off some debt, invest more money into the business, or stash some away for yourself. All of these ideas are good for the long term, and especially to set you up for the next Business Life Cycle. And so the process continues.





Here are some tips to help you with the Business Life Cycle.

  1. Have creative ideas. Your first business idea needs to be very unique. This alone won’t make you successful but it will help you to stand out from the crowd. Let’s use Laughter Yoga as an example here.
  2. Be aware of weaknesses. If you have any weaknesses they will show up as you enter Step 3. Your idea is a good one and it starts to work, but you just can’t advance into making the real dollars. Fix the weakness(es) and watch the bank balance grow.
  3. Enjoy growth. Take time out to enjoy your growth and success. Remain focused and work hard knowing that Step 4. (maturity) lies just around the corner.
  4. Be flexible. While it’s important to have a Business Plan always be on the lookout for any variables, both positive and negative, and be prepared to bend when required. The environment is changing more rapidly nowadays so it’s important to keep one eye on the road and the other out the side windows.
  5. Know when to sell or start over. If you want to sell your business do it at maturity. You can ask maximum dollars as accountants will look back on past success rather than what lies ahead. If you want to buy one do it when it’s dead. It’s cheap. I’ve seen situations where businesses are given away to merely stop the pain of continuing to burn money. It’s often termed “voluntary bankruptcy”. If neither of the above are options then start all over again … with a new idea!





If you have any further questions regarding understanding the Business Life Cycle then please feel free to email me at [email protected] at anytime. Any recommendations for future topics are also appreciated.