Life cycle of enterprise

During the life course of a business, it usually moves from a simple, small organization to large, complex, complicated company structures. At the same time, each stage has its own characteristics, whether we look at the needs of the organization or the financing.

Business is the life of every company with its establishment begins. The founders come together for some future business goal and look for the appropriate operating form.

In the startup undertaking, a common characteristic is that the founders should understand countless things that a company's management requires in addition to their field of expertise. They should know the HR and the accounting basic rules. They should be at home in the IT world. They should not be embarrassed when it comes to the financing of the company, or just the cash-flow and the financial plan it's about

The situation is only complicated by the fact that these start-up undertaking -ups are almost always small. They do not have an established management, a circle of experts or consultants who could effectively help them in these matters. Of course, this is no different for similar size and age with startups neither. True, startups are something innovative they enter the market with the promise of a product and the resulting very rapid growth, so it is easier for them to find professional supporters in the startup ecosystem at different actors, be they mentors, incubators or just now angel investors.

Although in the case of startups, these actors of the startup ecosystem are often the company in financing also take on a role, but in start-up undertaking -up companies it is almost always essential to family-friendly financing importance.

From the above point of view, start-up undertaking -up companies represent a special sub-case of those created by often significant companies for a specific purpose project companies, as well as those primarily coming from the university sphere, which further develop or utilize the research there already as a business company spinoff enterprises.

As a company ages and grows, its situation becomes easier in many ways. Because you have a track record, that's why banks are different for its loan products can also access Since he has some wealth, he can do it more easily collateral to ensure, ie guarantee undertake to repay these loans. They open up to them asset-based financing possibilities and even the bigger one venture capitalists they can also count on your attention.

A small enterprise is therefore often dependent on itself, while a medium-sized business, especially one large enterprise has already established management covering all business areas. Due to its size, it is already an exciting partner for consultants in various fields.

Of course, successful companies do not grow and operate forever. Their owners can decide to stop working together for any number of reasons, are settled the company is not opposed by a larger company acquisition his intention. But unfortunately, a worse scenario can and does happen: the life of many businesses ends in bankruptcy in the absence of a suitable solution with termination.