Essential Stages of Any Successful Startup
Starting any company, be it a simple roof Installation, carpentry, butchery, or complex ones dealing with software development, is always considered to be risky, time-consuming, and resource-draining. It can be hard and expensive to start a company with huge capital and planning required. Depending on the industry you choose to associate with, your startup may grow very slowly.
A startup is typically defined as a new business that is created to solve a problem for a specific customer segment. Startup refers to any type of entrepreneurial venture that is built to scale quickly.
For any startup, there are three main stages involved.
Ideation and business formation
entrepreneurs start companies for different reasons. Some start to make a lot of money, while others want to solve a business problem. Others just want to work for themselves and become bosses. Regardless of the entrepreneurial intent, most companies follow a very similar process while scaling through and going through different stages. The ideation and company formation stage involves answering a couple of questions.
You need to know the name of your company, its domain, and setting up a website and incorporation date. Set some things clear. Understand if you will be working for the company on a full-time or part-time basis. Why do you want to start the company and what problems will you be looking forward to solving? Have you thought about the personal and professional implications of being an entrepreneur? What kind of company do you want to build and where would you want to be in the next ten years?
The purpose of this stage is to define the map that your business will follow.
Proof of concept
The next phase of a startup is proof of concept, which is also the phase a business gains traction. It is a stage where a business starts to refine its initial idea and create a predictable sustainable business. The proof of concept typically includes making necessary improvements to the products and filling product lines. It is a stage where most startups grow their sales and marketing teams and pick their ideal customer persona based on improved products. It is a stage that normally includes a seed round of funding to help grow the business.
Scaling the Business
The final phase of growing a startup is scaling, which entails growing the business through its projection. It is a stage where a startup company will take the core group of entrepreneurs, add additional capital, and transition to a fully-fledged business. Depending on the industry and the business, that could entail opening additional offices, adding more products, and expanding teams. During this stage, there is normally enough data to strategize and come up with a clear competitive advantage that helps the business have an edge over competitors.
This phase of startup normally includes a series A investment that is led by a venture capitalist to give guidance and support and help a business grow into the established and sustainable entity.