Today companies are fundamental in the economic development of any country, without them there would be no progress. However, what is the lifetime of a company ?
What are the cycles that it is fulfilling? And after this
cycle is completed, what happens? If you want to know the details of these
questions, read to the end and re-evaluate how old your company is.
What is the lifetime of your company?
The life span of a company will depend on the vision of its originator, the strategies it uses and the organization it uses. Therefore there is no standard time, as some companies can last for many years.
However, the life of every company goes through cycles,
which each of its owners must know how to evaluate in order to remain in time .
Let's see what they are.
What are your company cycles?
Each company is unique, so each cycle that passes varies
from one company to another, it knows the 5 cycles that a company goes through.
Birth : It is the period in which your company is legally
established, it is the most difficult process in its lifetime, because it is
when you have to get someone to finance it. In addition, it is the stage where
you look for customers.
Growth : In this cycle your company must increase the
financing it received, this is when the number of employees will grow. Also,
the space where the company operates will grow, to achieve this you must
establish marketing strategies.
Maturity : It is when the company achieves success, you
become a competition, it is at this stage of life that you must keep the
company afloat. Reaching the maturity of a company can be easy, the difficult
thing is to maintain it.
Decline : By not remaining mature, the company can go into
decline, it is when the market is wasted, which weakens its economy.
Liquidation : Unfortunately this stage of life reaches your
company, when all resources that allowed it to stay are exhausted and ends up
closing operations.
After completing their cycles, what happens?
After a company is about to complete its last cycle, which
would be liquidation, it can reinvent itself and innovate . Which will allow it
to be reborn, perhaps with a new name.
In conclusion, we can say that a company is the creator of
work for the community and, success will depend on achieving the objectives set
and overcoming obstacles.
Although there is no defined lifetime for each company, you
can make your company last for many years.
As you saw, the problems companies face are different. As it
goes through the cycles, it is up to the employer together with his work team to
fight to prolong the life of his company.
Is your company going through some of these cycles? With the
information provided you will see what is the next cycle to face and how you
can face it.
We hope the information has served you, tell us your opinion
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