8 Stage 1 — the concept stage

8 Stage 1 — the concept stage

At this stage, the business is concentrating on developing its product or service and establishing itself in the market place. Typically, the proprietor will be operating largely as a ‘one-man band’ or with a very small number of associates, few employees will be involved and the participants will therefore see little need for an elaborate structure or for detailed procedures or systems. They are also likely to have little time to consider any longer-term strategy.

The dangers at this stage are largely financial. The business is likely to be highly cash-dependent and therefore