5 STAGES OF SMALL BUSINESS GROWTH - Stage 1- EXISTENCE
Existence is the first of the five stages of small business growth. As the name implies, this stage is about essential presence as a business. It's the point at which you've initially begun the business and yet endeavoring to make it reasonable. The difficulties at this stage are complex. It’s when you’ve first started the business and are still trying to make it viable. The challenges at this stage are manifold.
The key question is: Can you devise a product or service that customers want? If you can, then you have a chance of surviving and moving on to the next stage. If not, you'll need to throw in the towel when your startup cash runs out or you can never again put the required time and vitality to make it work. At this stage, it's impossible that you'll be profiting. You may need to keep running at a misfortune for some time, until the point that you get enough paying customers to back the initial investment. Raising assets, and making cautious utilization of those assets, will be basic.
With numerous difficulties come substantial chances. The major opportunity at this stage is to obtain new clients. You're beginning from zero, so you have nothing to lose and everything to gain. You can experiment freely at this stage. The key thing to focus on at this stage is acquiring new customers. Without customers, your business won’t survive.
Keeping in mind the end goal to get the word out, you may should be liberal with giving free preliminaries, so that as many individuals as could be expected under the circumstances can attempt your items or administrations. You might need to explore different models such as freemium price model, however make certain that you don't go too far down the complimentary gift course, and that you do have a few clients who are actually willing to pay for what you offer.
Those early clients can likewise give you significant feedback on your products/services and help you to refine them. So ensure you have an input framework set up to gather however much data from them as could reasonably be expected.
And finally, you’ll need to make sure you can raise enough funds to get you through this difficult period before you start breaking even, and you’ll have to budget carefully to make that money stretch.