Stage 1. The emergence and formation
The initial stage is to determine the activities of the enterprise, its strategies and goals. A business entity appears after registration with the executive authorities. There are two ways to register: notification and permissive. According to statistics, only 5% of all companies registered in the world remain “afloat”. The rest cannot withstand competitive conditions and disappear during the first 6-12 months of their activity.
Stage 2. Growth
The growth stage begins at the moment when the company expands, a segment has been selected in the market, a customer base has been developed, and the manufactured product has taken a certain place in the sales market. At this stage, special events are carried out that can provide profit.
Stage 3. Stability (maturity)
At this stage, the successful activity of the company is manifested, proving the effective work of all management personnel. Providing a quick response to the changing needs of the target audience, and timely forecasting of changes in the market, the long-term functioning of the enterprise is ensured, and the risk of becoming bankrupt is significantly reduced.
Stage 4. Recession
Failure to comply with the above actions and measures, the final result becomes a recession, which can develop into bankruptcy of the enterprise. Reorganization - a change in the structure of the organization of an enterprise, as well as its type - restructuring (changing the structures of the company's divisions, and its constituent elements), are able to bring the company out of a critical state in the early stages of recession, as a result of which an anti-crisis plan is developed. It can be a merger or transformation, with a changing organizational and legal form of an economic entity.
More here - https://en.wikipedia.org/wiki/Enterprise_life_cycle
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