Entrepreneurship and Small Business (ESB) Certification Practice Exam

Which stage of the business life cycle is primarily about maintaining existing customers?

1. Startup

2. Maturity

3. Growth

4. Survival

The correct answer is: Maturity

The maturity stage of the business life cycle is primarily focused on maintaining existing customers. At this point, the business has typically established a strong market presence, and customer acquisition becomes less of a priority than customer retention. During the maturity phase, companies often face increased competition and market saturation, making it crucial to prioritize customer satisfaction and loyalty. Strategies such as enhancing customer service, implementing loyalty programs, and providing consistent value are key in this stage to prevent customers from shifting to competitors. In contrast, the other stages of the business life cycle serve different purposes. The startup stage emphasizes launching the business and finding initial customers. The growth stage is characterized by rapid expansion and increasing sales, focusing on attracting new customers. The survival stage, often a challenging phase, deals with keeping the business afloat, which can involve retaining customers but is primarily about addressing immediate operational concerns and ensuring viability.