All successful businesses go through cycles characterized by phases of development, commercialization, growth and expansion.
Even established companies that undertake a new product or business line goes through the same process.
The development phase is characterized by investment with progress but no major sales and no profit, as a matter of fact is negative profit. As the product begins commercialization, sales and revenues increases and so does the prospects for profits.
As the company new business grows entering into the growth stages where more customers are acquired, profits increases at a rapid pace and expansion activities further results in increasing profits.
At this point the market matures and if new development and effort does not occur, decline ensues eventually resulting in declining profits.
Every step of the way, proper financing can insure the development of the company and its business into the next phase. Without financing, like fuel to a rocket, the business eventually declines.