The “Seed”

The Business Life Cycle – Stage 1: The Seed Stage

Whether you’ve been kicking a new business idea around in your head for a long time or it came to you suddenly during a “light bulb” moment, this thought or idea is the beginning of your business’s life cycle.  This first stage of the business life cycle is called the seed stage.

In this early stage, you will find yourself facing a few obstacles. The most challenging obstacle, especially in these tough economic times, is obtaining a loan from a bank in order to get your new business venture off the ground.  Financing for the business will most likely have to come from your personal cash, or the cash of friends, family, or early investors.

To move to the next stage, it is critical that you focus your thoughts and ideas.  It is important to start thinking about the big picture and ask yourself a few important questions:

• Does my product or service meet the needs of a large number of people?
• Do I have the passion, skills, and experience necessary to move forward with my idea?
• Am I willing to commit a large amount of time to my business, in order to take it to the next level?
• What kind of ownership structure is right for my new business?

After taking all of these factors into consideration, if you’re still feeling confident and comfortable about your idea, the second stage is waiting for you!