The 4 Stages of Startup Business Marketing
Your business marketing plan should include a product life cycle analysis. All services or products that you sell go through product life cycles. In most cases, these life cycles go through four phases: initial entry or launch; development; maturation; and lastly, decline. Based on this simple definition, each stage of the product cycle has to be addressed in your marketing plan. Thus, a proper marketing plan is key to your long-term success as an entrepreneur or business owner. In this article, we will discuss the different stages and how the analysis of your marketing plan can help you in identifying the correct marketing plans for your company.
Every business life cycle has four primary stages:
seed, pre-seed, startup, and exit. Each stage represents four distinct phases of business development. When these four stages are properly analyzed, it becomes easier to understand what needs to be done to complete a particular stage in the business life cycle. For instance, when you look at the seed stage in a business life cycle, you will see that it represents the period when the idea for the new venture is being conceptualized and tested and is most likely to be short-lived.
The next two stages represent
the period when the idea is being executed, and the period during which the business life cycle is being developed and optimized. When the idea is being executed, the first two stages represent the pre-startup phase. During this phase, several crucial steps need to be executed to make sure that the new idea is not only workable but also financially viable. These crucial steps include: setting up the infrastructure, selecting a target market, developing the product or service, testing it if it meets the expectations, brand creation, and getting the business idea into the hands of customers.
Once the pre-startup stage is over,
the second set of stages starts. During this stage, the development of new products and services, if necessary, is taking place. At this stage, it is important to develop marketing plans and conduct market research. If necessary, one can even implement changes according to the identified market trends. By looking into the market trends, the development team will be able to know what type of products and services to develop, and at what stage of the business life cycle they should be introduced.
After the development process is over,
the third set of stages will start. At this point, the focus turns towards increasing market share. The goal here is to make certain that enough people can buy the new products or services, and thus, increase the sales. This can only be achieved if the introduction of new products and services is accompanied by an increase in marketing efforts. During the introduction stage, it is advisable to focus on getting leads. For this, you may want to hire a sales manager who can develop strong customer relationships.
The fourth and last set of stages will involve cash flow analysis, and valuation of the company’s assets, liabilities, and future needs. The objective of the valuation is to determine the overall value of the business. The shake-out team should be in a position to recommend changes in spending as necessary to make the company profitable. The shake-out cycle is integral for every business, but when it comes to a small business startup, this phase of development is especially critical.