Business financing typically follows the lifecycle of the business:
Seed Stage: Initial funding used for market research, product development, and business planning. Common sources include personal savings, family and friends, and angel investors. Startup Stage: Funds are used to launch the product or service and start operations. This stage may involve seed funding, angel investors, or crowdfunding. Growth Stage: Requires substantial capital to scale operations, enter new markets, or develop new products. Venture capital is often sought during this stage. Expansion Stage: Businesses need funds for large-scale growth, mergers, or acquisitions. This can involve venture capital, bank loans, or public offerings. Maturity Stage: Established businesses may seek financing for diversification or to improve efficiency. Traditional bank loans and retained earnings are common sources.