Maturity Phase: In this stage of growth, a product will reach its peak demand in the cycle.Cash flow and capital might come from profits, bank loans, partnerships, and rounds of investments from venture capital firms. An increase in competition is probable, gross margins might then decline, making the product less profitable on a per-unit basis but the volume is higher. As such, more investment in growth is required. As production levels increase, economies of scale may occur generating better margins. Growth Phase: This phase is when sales growth begins to accelerate, characterized by increasing sales year-over-year.The money for this phase usually comes from early investors, company owners, or suppliers.

At this stage, the company may be spending its capital in the hope of generating revenue in its next phase.

Market Introduction Phase: This marketing phase includes the initial release of the product, usually marked with high levels of advertising.

Funds from the initial start-up are typically used for this phase, and if revenue is low and development costs are high, it can be a period of low cash flow for the company. Product Development Phase: This phase includes market analysis, product design, conception, and testing of a product or service.

Life cycle