Growth Stage

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What is Growth Stage?

Growth stage or the growth and expansion stage is the second of five key phases in the business life cycle. The life cycle also includes launch, shake-out, maturity, and decline. During the growth stage, a startup will see sales increase rapidly. This is the phase in which businesses start to see profit. This causes cash flow to become positive.

Still, during the growth stage, profit continues to lag behind sales.

Growth Stage Examples

Examples of challenges experienced during the growth stage:

  • Example 1. A strong desire to go public might appear
  • Example 2. Merger or leaving the business becomes an option
  • Example 3. There is an increased need for funding

Learn more about a growth stage with this article .

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