By Tracy Miller
Apr 25, 2023
| News

As a business grows, it will move through three key stages from infancy, to adolescence to maturity.

The needs of a business at each stage will vary significantly. For example, a business in its infancy (early stage) must lay down the foundations for business growth. A business in adolescence (growth stage), on the other hand, may be focused on ensuring that business growth is sustainable and profitable. A business in maturity (established) may be focussed on innovating to remain relevant and competitive.

Depending on the stage your business is in, your financial priorities will vary. So, how does a business’ lifecycle influence financial governance at each stage?


A business in its infancy is just starting out and therefore faces a high degree of uncertainty. The primary focus for startups at this stage is survival and business growth.

One of the biggest challenges for startups is ensuring they have enough capital to fund their business growth. This can be achieved through a variety of means such as angel investors, venture capital firms or crowdfunding platforms. Raising capital can be a challenging undertaking at the best of times, but that is especially the case now with capital markets tightening. Alternative capital sources such as bank loans or even self-funding may need to come into play.

Another important consideration in the infancy stage is to carefully manage cash flow while revenue is still small. It is common for startups to experience cash flow problems, which can be detrimental to their business growth and very survival. To avoid this, startups need to be diligent in managing their expenses and ensuring they have sufficient cash reserves to meet their obligations. Startups can no longer rely on repeatedly raising capital as a means of funding their business growth in the current environment, so focusing on cost control and extending runway will be important.

Businesses in their infancy also need to focus on building their brand and establishing a customer base – this will require a strategic investment in marketing and sales. The goal at this stage is to establish a loyal customer base that can provide a steady stream of revenue as the business grows.

Financial Needs of Businesses 2, Keeping Company


As a business enters its adolescence stage, it will have established its position in the market, it will have a track record of success, and a deeper understanding of its market and customers.

The key priority for businesses in adolescence is to scale operations while maintaining a focus on profitability. The goal can no longer be growth for growth’s sake, it must be to carve out more profit margin.

To achieve this, businesses will need to keep a tight lid on costs – analysing expenses and identifying areas where costs can be reduced without negatively impacting the business.

At the same time, strategic investments will remain important in order to achieve sustainable business growth. This may include investment in infrastructure, systems and automation. In addition to investing in technology, businesses need to focus on building a strong team and developing a culture that supports business growth and innovation.


At the maturity stage, businesses are well established and have a solid reputation in the market. However, even successful businesses face challenges in maintaining their business growth and profitability over the long term.

One of the key priorities for businesses in maturity is to find new opportunities for business growth. This may involve exploring new markets or developing new revenue streams. Businesses may also need to consider diversification to reduce their dependence on any one product or service.

Another important consideration for businesses in maturity is to focus on innovation. To remain competitive, businesses need to continuously innovate to meet the changing needs of their customers. This requires investment in research and development and a willingness to take risks and try new things.

Ultimately, regardless of what stage your business is at, there’s no room for complacency. Even if your business achieves maturity, that doesn’t mean the hard work is over. Being proactive with your financial governance – at all stages – is a great place to start.

Looking for advice on how to sustainably grow your business? Contact us today to find out more.

At Keeping Company, we’re not just accountants, we’re business people too. With our counsel, your business can reach its full potential. 

We have a team of experts; Cloud Accountants, Business Advisors, Finance Specialists working together and ready to help, contact us today.

1300 533 787

For all media enquires please contact Tracy Miller, CMO, Keeping Company 0414 898 452.

The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.