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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.

Stages of Business Life Cycle	Feasibility	Seed	Start-Up	Growth	Established	Expansion	Decline	Exit/ Regeneration
	Product Development			Market Development				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