Often there are various kinds of cycles and patterns that streamline our knowledge. So, for example, a person’s life is not considered as something uniform and unchanging, but is divided into several stages: birth, adulthood, maturity and old age. This cycle is repeated in nature countless times. The business is also trying to streamline existing knowledge, using quantitative methods to find dependencies for a better understanding of the external environment.

Any company is a human creation, and why not assume that its "life" has the same cycle.

There is a great need to determine the exact stage of the business life cycle in order not to miss the Company’s opportunity to use the chance to “reincarnate" the business, start a new life cycle with a new business idea or modernization of previous activities.

The problems of the life cycle of a company are considered from the point of view of strategic management and from a financial point of view.

Models from the point of view of strategic management provide for various methods for classifying the stages (stages) of a company’s life cycle, however, they lack clear quantitative criteria for distinguishing between these stages. These models are based on intuitive assumptions and qualitative characteristics.

From a financial point of view, to distinguish between the stages of the life cycle of the Company, indicators of revenue growth, expenses, dynamics of the current liquidity ratio, autonomy, cash flow from operating, financial and investment activities, etc. are used.

InBridge Consulting pays attention to determining the stage of the life cycle from a financial point of view while conducting financial diagnostics.

One of the methods that InBridge Consulting uses is cash flow diagnostics.

So, for example, the stage of "Growth" of the Company is characterized by a positive value of cash flow from operating activities. The cash flow from financial activities is also of positive importance, since the Company, generating a positive cash flow, has the opportunity to contact bank institutions on borrowed funds. The cash flow from investing activities is in a negative plane, as the Company continues to invest in fixed assets.

Financial diagnostics from InBridge Consulting allows you to determine the stage of the company's life cycle and suggest starting a new life cycle with a new business idea or modernization of the Company's previous activities.

Appendix: Procedure for the provision of Financial Diagnostics services