Practical Application of Life Cycle Theory in Startups

Abstract

Theory shows many different approaches to life cycle models existing in literature with differentia number of stages. There is therefore no one universal approach to the issue. Regardless of that, however, most of them agree, that knowing life cycle of the company provides an opportunity of effective management. Thanks to that entrepreneurs are able to predict the future and successfully use the tools of optimal management. Unfortunately, typical to life cycle model doesn’t work with startups, as that group of companies are not stable systems. Startup is a very fast process of setting an idea in motion with no guarantee of success. Entrepreneurial research must be fast and flexible on each stage of growth where be strategy, structure, decision-making, but also organizational, administrative, marketing issues arise through the stages strategy, structure, decision-making, organizational, administrative, marketing issues arise import ant, sometimes crucial. In the environment of risk, instability there is crucial to use dynamic management strategy and Lean Startup meet expectations.