It suffices to make the following observation. Let $\phi^k$ denote $\phi\circ\ldots\circ\phi$ k-times and suppose $\dim V=n$, then
$$\ker\phi\subset\ker\phi^2\subset\ldots\subset\ker\phi^n,$$
and
$$\text{Im}\phi\supset\text{Im}\phi^2\supset\ldots\supset\text{Im}\phi^n.$$
Since the dimension is finite, notice that if at any point $\dim\ker\phi^i=\dim\ker\phi^{i+1}$, then we must have $\ker\phi^i=\ker\phi^{i+1}$, and similarly if $\dim\text{Im}\phi^i=\dim\text{Im}\phi^{i+1}$, we must have $\text{Im}\phi^i=\text{Im}\phi^{i+1}$, in either of these cases, the chain will remain constant.
Furthermore, we know the chains will have terminated by the $n$'th application since if $\ker\phi^i$ or $\text{Im}\phi^i$ is not constant, then the dimension must change by at least one at every application of $\phi$, but this cannot happen more than $n$ times.