Topic 3 : Analyzing the status of business

The status of business means duration or stages of occupational performance or business of the entrepreneur. Generally, it can be categorized into four different stages or phases as follow:

1. Beginning or basic stage

2. Developing stage

3. Stable stage

4. Declined or increasing stage


These stages may be explained through the following graph :

1. Beginning stage is the stage of business incubation to the channel of occupation.

2–3 Proceeding stage of development and stable means the business is on the stage of expanding or being settled. During this time the competition with other entrepreneurs may occur.

4. Decreasing or increasing stage

4.1 When the business is being developed, it will attract people who want to learn and undertake the same career which may cause market sharing crisis.

4.2 When the business is not been developed or stagnant, the business downturn may occur, so the entrepreneur needs to extend more networks and makes use of more innovation and technology applications.



The entrepreneurs should be able to analyze their business status quo stages such as expansion stage, the settled stage, the decreasing or increasing stage. The following work sheet or learning document will describe the analysis of business structure in terms of profit and loss that may help the learners understand the process of analysis of the business status.