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Home > Key industries > Information and communication technology > Queensland ICT > ICT Services Guide > Technology business lifecycle matrix

Technology business lifecycle matrix

The matrix below provides detail about the eight stages of the technology business lifecycle. Use this guide to identify the stage your business is at and then proceed to the information/service selection.

Product Development

Market Development

Exit/ Regeneration

Stages of Business Life Cycle

Feasibility

Seed

Start-Up

Growth

Established

Expansion

Decline

Exit/ Regeneration

Description of Stages

Major focus is on market and technical feasibility.

Concept exists, however there is no business structure.

Business and management structure has been set, there is a product and sales have occurred.

Revenue and customers are increasing at a rapid rate in terms of percentage.

Sales growth has slowed but sales are sound and customers are loyal.

New growth into new markets.

Sales and profit declining.

Cashing-out or shutting down.

Typical Net Asset Position

Negative

Negative

Negative

Positive

Positive

Positive

Positive

Positive

Positive

Negative

Activities within the Stages

Very small or nothing in earnings.

Have an idea and need to turn into a concept.

Undertake Feasibility Study to explore commercial merit and market demand for each idea.

Focusing on business and revenue model.

Test the business strength.

Strategic direction.

Intellectual property (ownership).

Business plan  (business model).

Marketing plan  (revenue model).

Secure seed funding.

Market research.

R&D.

Define management structure.

Identify government assistance available.

Identify regulatory requirements.

Cash flow management (resources less scarce than at seed stage).

Establish customer base (focus on profitable customer segment).

Proof of concept stage.

Brand your  product/services.

Establish a financial model.

Apply for regulatory requirements.

Management (single biggest issue).

Delegation, focus and skills are very important

Professional advice (setting up system to take care of customers, sales and accounting).

Continue to build and maintain client relationships.

Revenues are relatively static.

Profits will only rise by improvement in processes.

Will need to consider outsourcing, implementing automated system.

Concentrate on Corporate Governance.

New period of growth into new markets and distribution channels for existing products.

The same issues as Seed and Start-up will need to be considered.

Continue capital raising.

Improve Corporate Governance.

Staff attraction.

Product development (consider new products to existing clients).

Market development (consider selling existing products to new markets).

Diversity (consider new products into new markets).

Staff retention/ attraction.

Divesting control to management or other entity.

Reinventing the business,  retaining IP and customer base.

IPO (Initial Public Offering, sharemarket).

Last updated 26 May 2010

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