From the moment you make the decision to set up a business, you're in the ‘business lifecycle'. This will see you progress from idea to startup, and if successful, through to the growth and maturity phases.

Stage 1 is Initial Development. This is the very beginning of the business lifecycle. You've got your business idea and you're ready to take the plunge. But before you do this you should get as many opinions as possible from friends, family, colleagues, or any industry specialists you have access to. Ultimately, the success of your business will come down to your own abilities, the state of the market and, of course, the decisions you make about the source of finance for your startup.

Once you're satisfied that your idea is ready to go, you move on to Stage 2, which is Startup. Many believe this is the riskiest stage of the entire lifecycle, since mistakes made then can have an impact many years later. Based on the feedback from your first customers, you have to be ready to adapt your product or service. It can even get to the point where you are making so many changes to it that you start to feel a bit confused about what you're doing. Don't worry—this feeling will soon disappear as your company develops.

Stage 3 is Establishment. You should now be seeing your profits improve slowly and steadily, but you may struggle to divide the time available to you between the growing demands of your business. Employing the right people is essential, so you need to take a major part in recruitment. It is your job now to start establishing order and cohesion as you mobilize your team according to clearly defined and communicated goals.

By Stage 4, Expansion, you may see rapid growth in profits and wish to move forward. However, you need to be aware of the risks of expanding too carelessly, and should keep an eye on how far expansion might affect the quality of what you provide to your existing customers.

Stage 5 is Maturity. Here you may wish to further expand the business. Many companies in this situation bring in a new leader at this stage, to face the new challenges. Other entrepreneurs may decide that they should sell the company at this stage, and move on to a new project.