One of the most acceptable scientific and methodological approaches to work in difficult economic conditions is regular and targeted management of the life cycle of a business organization as an open social and economic system. Any system develops and changes, passing through typical stages or cyclic states of its development. Studying the enterprise from the point of view of the life cycle allows to increase efficiency of financial and economic activity exactly at the specified stage and in due time to develop measures on prevention or weakening of negative and increase of positive results. The analysis of scientific researches has allowed to define the "life cycle of an enterprise" as a quantitatively limited set of stages or states within which the enterprise is during its existence and development. With regard to the functioning of a business organization, the following stages of its life cycle have traditionally been identified: creation, growth, maturity and crisis. Depending on the stage of the life cycle, a business organization should focus on various aspects of its financial and economic activities. Development of a business organization is to ensure the transition from the first and second stages to the third, and the longest possible retention (maturity stage) with timely identification of signs of the fourth stage (crisis) in order to prevent it by retaining the existing positions, returning to the second stage, diversification or transition to a new life cycle. Each stage of development has its key aspects on which management should focus to achieve and maintain positive financial and economic performance. Correspondence of life cycle stages and financial and economic priorities gives grounds for development of the system of financial and economic indicators and formation of limits of their permissible fluctuations within each stage. Based on the values of financial and economic indicators and their dynamics, it is possible, firstly, to contribute to more accurate diagnostics of the life cycle stage of a business organization; secondly, to improve the efficiency of a business organization at each stage by adjusting the values of indicators within the optimal ranges and applying adequate managerial impacts.

business organization development, life cycle of a business organization, life cycle stages, financial and economic priorities, financial and economic indicators

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