The S-curve is a visualization of the performance of a business over time and the E-S-C-H is a modification of this based on Eschbach Enterprises’ 40-plus years in business. While the actual trajectory for each business may be slightly different and less perfectly-shaped, all businesses experience it.
Start-up – starting left and moving downward to the right; this when businesses are just starting out so it is inevitable that cash outflow exceeds cash inflow by a significant amount (not counting funds provided for by banks/angel investors as seed money).
Beginning growth – starting at/near the lower center, the trough, and beginning to rise as time goes on; the large, initial investment related to equipment purchase, leasehold/real estate improvements, employee hiring/training, database systems, marketing and the like are all established and customers start buying products/services (this may still be on the downward side of the S but the steepness declines as revenues are now coming in to offset expenses).
Accelerated growth – the center, lowest point of the S that now is beginning to rise, hopefully, as close to 90 degrees as possible; customer base is now strong and the business is now profitable and continuing to grow as brand recognition catches on and customers grow.
Mature – reaching the top of the S and holding steady; business has matured and while profitable the revenues and/or profits remain steady.
Declining – downward sloping from the top of the S heading south; for many businesses (seems to be anywhere between 7-12 years) sales and profits begin to decline for a variety of reasons (owner disinterest, intense competitive pressures that cannot be responded to, changing technology and the like.