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A business undergoes several stages before becoming an established name... and then it goes through some more stages. Find out the details pertaining to stages of business development from the following, easy-to-understand write up.

To define business in contemporary parlance, it won't be an exaggeration to regard one as a distinct entity with a life and personality of its own rather than merely a commercial venture undertaken to reap economic benefits. You see, just like an organism goes through various stages of biological growth and decline to complete a single life cycle, a business also goes through various initial stages before becoming an established entity. As is with living organisms, the journey of a business doesn't end here. After reaching its optimal stage of growth and development, every business goes through a stage of stagnancy followed by decline. All these stages that define the journey of a business from inception to decline are collectively known as the stages of business development.

Almost all businesses go through all the five stages laid out in detail below. Go through each of them to understand why it is almost impossible for any business to skip any step and proceed to the next.

Stage - 1: Conception of an Idea

No venture can come into being without an idea of it being conceived in the venturist's mind. Likewise, the idea of a business is the seeds which, when sown in capital and nourished with labor and entrepreneurship, grows into a benevolent tree the economic fruits of which are shared by all stakeholders. When conceiving an idea of a business, various aspects of the economic environment are taken into consideration such as the specific industry, level of competition, availability of resources, market and customers, etc. Also, financial estimates are drawn up to get an idea of the extent of investment required, the amount of earnings expected and the ratio between investments and earnings. This is the stage where the business blueprint is developed. It's like a couple deciding that they are ready for a child and making preparations for its arrival.

Stage - 2: Materialization of the Concept

Next comes the materialization stage which is nothing but the startup phase. In this stage, all the necessary measures for bringing the conceived business idea into actual existence are undertaken by the involved parties. All legal formalities such as registration, incorporation (the type of startup formalities depend upon the type of business entity; for instance, startup and governance formalities for a joint stock company and a partnership firm will differ significantly), etc. are undertaken to give the business a legal status and to mark its arrival in the industry and the market. At this stage, before going for the commencement legalities, provisions must be made for acquiring factors of production such as land, labor and capital and soon after legal business commencement, their functional interactions must be kick started. In other words, at the time of legalization of its entity, a business must be totally ready to commence production as soon as all legal formalities are completed. It wouldn't be surprising if a business is already finalizing deals with its first customer at this point.

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