What is the typical first phase in the business cycle called?

The typical first phase in the business cycle is referred to as the "Launch Phase." In this initial stage, businesses introduce new products or services to the market, characterized by high investment and development efforts. During the Launch Phase, organizations focus on establishing a customer base and creating brand awareness, often facing uncertainties and challenges inherent in bringing something new to market.

This phase is critical for setting the foundation for subsequent growth. Companies often spend resources on marketing and promotional activities to drive initial sales, making it a high-risk yet potentially high-reward period. Recognizing the significance of launching effectively can shape the trajectory of a business's future success within the overall business cycle.

The other phases mentioned, such as Growth, Maturity, and Shake-Out, occur later in the business cycle and focus on different aspects of business development and market saturation, which is why they do not align with the definition of the initial phase.