Phases in business life cycle

Pre Start-up
During the inception phase in the entrepreneurial, the individual becomes motivated to start a business (in many instances, this motivation are more a response to push factors – by necessity – than pull factors such as profit seeking or achieving independence). This may involve identifying business opportunities and ideas, preparing the ground work for the venture as well as doing some form of business planning.
Start-up
This phase involves the final decision-making process to establish the enterprise. The entrepreneur has to find access to or organise a range of resources such as capital, human resources, technology, raw materials, etc. In addition, the entrepreneur has to decide on the most appropriate organisational form for organising the enterprise resources. The start-up phase typically last between 6 – 9 months.
Early Development
The first three years after the establishment of the enterprise is generally referred to as the early development phase in the entrepreneurial phase. This period is critical to the survival of the enterprise. The entrepreneur needs to confront key challenges such as overcoming barriers to survival, demonstrating business management capabilities and entering the market.
Growth
From around the 3rd year the enterprise typically enters its growth phase.

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