Few businesses follow a predictable path and timeline from one stage of life to the next.
Some linger for a long time as startups, while others dash directly from startup to rapid growth. Knowing the life cycle of a typical business can help an entrepreneur know where to find capital to reach the next stage.
The seed or startup stage starts with an idea or a prototype for a product or service. At this stage, entrepreneurs either tap friends, family members or other personal contacts for funds, or they seek angel investors, SBIR grants, micro-loans or very early stage venture capital.
|NAME: Paul F. Goblet
TITLE: Investment adviser
ORGANIZATION: New Mexico Small Business Investment Corp.
When a company is preparing its product or service for a market launch, it’s in the early stage of life. As it begins to produce products and secure customers, the business might need a cash infusion for inventory or equipment and is most likely to find it through a bank loan, micro-loan, angel investor or venture capitalist.