Business Life Cycle

ONPASSIVE is an excellent online tool which can help to understand the entire business life cycle. There are four phases of business growth which are:

  1. Launch
  2. Growth
  3. Shake-out
  4. Maturity

What is the purpose of the business life cycle?

Businesses are inherently unique, even though they follow a similar life cycle when you plot the business journey from its conception, which are present on a timeline.

There are some unique facts about businesses according to a report done by the Startup Genome. When a business fails, it does not happen immediately. More than 20 percent of companies do not survive even an extra year beyond the launch.

30% fail in the second year, 50% of people who start their businesses fail by their 5th year. Finally, in the 10th year, the remaining 70% of businesses also fail.

What are the different phases of business growth?

There are four main phases of business growth, such as starting, growing, and even sustaining a business. The major stages of business growth have been constantly labeled and re-labeled. Here are the different phases:

Phase 1 – Launch:

A business must be launched successfully before it grows and matures as there is an investment of resources to get your business off the ground. The launch phase should not be rushed with, and significant time and effort are needed to be put into your business, to build it successfully.

Phase 2 – Growth:

The next phase of the cycle is growth, and this is the stage when your revenues are increasing steadily. The main goal is to boost revenue further and in specific profits.


It is the next important step in the business after the growth phase, and the idea of climbing revenue can be proof of a concept. Marketing can be incredibly great in increasing the reach and will also help in bringing in more business.


Sales is another excellent focus during the growth stage of the business cycle, and a growing emphasis on sales can help to transform a business from a passive to a more proactive one.


A business owner wants to see or increase the capability or capacity for growth. Businesses should become a success and as a business that supports increased capacity without compromising on capability.

Phase 3 – Shaking out:

The shake-out period sees revenue is increasing at a much slower rate. If you start noticing that your sales have been increased, you will see that your profits have significantly decreased.

Phase 4 – Maturity:

The maturity phase is the final phase of the business cycle and this phase is marked by predictable revenues and the acquisition of other business entities, including spin-offs. Growing a business through the maturity phase is about vigilance and looking for stages of decline. When your business has reached the stage of maturity, it is a sign of positive business growth.

In conclusion, these are the ways of how ONPASSIVE can improve your business life cycle. Thanks for reading!