Business Life Cycle Stages

• Business Life Cycle stages consist of seed, start-up, growth, maturity, and post-maturity.

Seed Stage

• The initial phase where a business is just an idea.
• Requires establishing a legal structure, business plan, and securing funding.
• Key actions include industry research and gathering feedback.
• Challenges involve the time, energy, and money needed to develop the idea and the significant initial outlay.
• Strategies include developing a business plan with a clear vision, goals, objectives, marketing plan, and financial needs outline.

Start-Up Stage

• The business idea is developed into marketable products or services.
• The business is established, trading commences, and employees are hired and trained.
• Networking occurs in this stage.
• The riskiest stage; businesses may fail if they cannot engage stakeholders or adapt.
• Strategies involve responding to stakeholder feedback, adapting to customer feedback, and stakeholder engagement.

Growth Stage

• The business transitions to an established or expansion state.
• Product or service innovation occurs for sustained growth or entry into new markets.
• Revisiting the business plan, goals, objectives and setting new financial and marketing plans is key.
• The business may develop new ideas or acquire other businesses to market new products and create new organizational structures or new management positions.
• Challenges involve avoiding complacency, overextending resources, and facing new competitors and dividing time between established business needs and future development.
• Strategies include implementing quality practices, involving founders in recruitment, establishing processes and expectations, and investing in research, development, and staff training.

Maturity Stage

• The longest stage, reflecting a dominant market presence.
• Steady growth and stable yearly profits are typical.
• Challenges include environmental factors, economic changes, societal shifts, and emerging technologies.
• Strategies involve maintaining competitiveness by cutting costs through outsourcing or adjusting supply chains.

Post-Maturity Stage

• The business can experience a steady state, decline, or renewal.
• Strategic decisions are required to reignite growth or plan an exit.
• Decline can lead to administration or receivership.
• Challenges involve financial and mental impacts during decline or closure and determining the business's real value for sale.
• Strategies include having a transition plan with professional input, investing in research and development, and implementing successful marketing strategies.

Business Environments

• Internal environment includes organizational culture, employees, owners/management, and organizational structure.
• External environment includes macro and operating environments.

Internal Business Management

• Organizational structure is a formal outline of roles and responsibilities, which can be tall or flat.
• Organizational culture encompasses shared values, beliefs, expectations, attitudes, and behaviors.
• Aspects of organizational culture include values, beliefs, communication, and rewards.

External Operating Environment

• Includes interest groups, customers, competitors, and suppliers.

External Macro Environment

• The wider environment has conditions outside of a business's control.
• STEEPLE analysis covers Socio-cultural, Technological, Economics, Environmental, Political, Legal, and Ethical factors.

Stakeholders

• Anyone with an interest or concern in a business and its operations.

Internal Stakeholders

• Have a direct relationship with the core operations.
• Owners are interested in maximizing profits.
• Managers & Employees want job security and fair wages or salaries.

External Stakeholders

• Not directly employed but are affected by the business's actions.
• Consumers want high-quality goods and services.
• Suppliers want continued business.
• Investors seek income from their investments.
• The community wants positive environmental and community contributions.
• The government is interested in legal, tax, and employment compliance.

Influence of Stakeholders

• Financial Impact: Businesses should be concerned about their community and implement sustainable environmental practices.
• Operational Impact: Employee expectations for fair treatment, safe work conditions, and equal opportunity are very important. Failure to comply can lead to lawsuits and lower morale.

Conflicting Stakeholders

• Owner vs. Employee: Owners aim to maximize profits, while employees desire higher wages. Owners introducing new technologies may cause redundancies.
• Business vs. Customer: Businesses seek to raise prices, while customers want lower prices.
• Business vs. Community: Relocating overseas can lead to job losses and negative local impacts.
• Business vs. Suppliers: Choosing cheaper suppliers can damage reputation if the new supplier operates unethically.

Business Types

• Profit-Based Business: Aims to make a profit by providing products or services.
• Not-for-Profit: Does not aim to generate a profit, instead working to benefit a community or cause.
• Government Owned Corporations: Established by the government to address a community need.
• Government Business Enterprises: Established to fulfill a Commonwealth Government-recognized purpose.

Ownership Structure

• Sole Trader, Partnership, and Companies (Private and Public).

Sole Trader

• Owned and operated by one person.
• Unlimited liability and unincorporated.
• Advantages: Owner receives all profits, tax is on the owner's income, and minimal regulations.
• Disadvantages: Unlimited liability, limited finances, and the business dissolves if the owner dies.

Partnership

• Owned and operated by 2-20 people.
• A partnership agreement is recommended.
• Unlimited liability and unincorporated.
• Advantages: Shared responsibility, greater capital raising capacity, and minimal regulations.
• Disadvantages: Unlimited liability, potential for conflict, and profits must be shared.
• Limited partnerships allow partners to contribute capital without involvement in running the business (silent partners).
• The Partnership Act 1891 (QLD) governs partnerships.

Company

• A separate legal entity with the same rights as a person, required to comply with the Corporations Act 2001 (Cth).
• Advantages: Limited liability, easy transfer of ownership, and greater management expertise.
• Disadvantages: Complex to establish, obligated to publicly report financial situations, and higher government control.

Private Company

• Typically small-to-medium, family-owned businesses with private ownership.
• Restricted to 50 owners with "Pty Ltd" designation.

Public Company

• Listed on the ASX with a minimum of 5 shareholders and no maximum.
• Designated as "Ltd" with a requirement to publish an annual report.

Business Functions

• Finance: Manages financial resources, positions, and performance.
• Human Resources (HR): Manages all aspects of the business's people.
• Marketing: Aims to understand the needs and wants of consumers.
• Operations: Transforms inputs (material, people) into finished goods or services.

Business Goals

• To maximize profits, specific goals need to be established.

Strategic Planning

• Sets goals based on vision and mission statements.
• Serve as a decision framework, explain the business, assist with monitoring performance and insight into future planning.

Leadership Styles

• Authoritative: In complete control, dictates without considering team input.
• Charismatic: Influences through personality and enthusiasm.
• Bureaucratic: Relies on rigorous rules and a strict hierarchy.
• Authentic: Leads by example and empowers team members.
• Transactional: Focuses on rewards and measures success based on performance.
• Transformational: Team-oriented, inspires with a shared vision.