Which stage follows the growth phase in the business lifecycle?

The growth phase in the business lifecycle is characterized by increased sales, customer acquisition, and market expansion. After a business successfully navigates this stage, it typically moves into the maturity phase.

During the maturity phase, the business experiences a slowdown in growth as the market stabilizes and competitors enter the field. Demand for the products or services is more consistent, and the business focuses on maintaining market share rather than aggressive expansion. Companies often refine their operations, enhance efficiency, and may begin to explore new markets or product lines to sustain profitability.

The maturation of a business is critical because it signifies a shift from rapid growth dynamics to a more stable, sustainable business model. This phase requires different strategies and management practices compared to the previous stages, emphasizing customer retention and maximizing operational performance to extend the life cycle of the business.