Hello everyone, hope all are having a great and productive time in your daily circle. The last post I had written was about the term”Start-up” and what does it actually mean?
As the follow-up to that topic, I now give you the phases of Start-up or more commonly known as the “Business Cycle” of a start-up.
Every Start-up goes through these rites of passage to attain their end goal: profit and continuing business cycle.
The First Stage: A light bulb of Idea
Having a million-dollar idea is the right of many. Nevertheless, an idea only becomes a million dollar one when it is plausible. The execution of the concept has to find the perfect outlet meaning audience and consumers who are actually in need of that particular million-dollar idea. Once the primary layout is complete, the Start-up entrepreneur has to map out a chart or a strategy involving their milestones and the route to achieve those milestones.
The Second Stage: Prepping the race track
In this stage, the entrepreneur has entered the race and is on the track meaning he is spearheading and shaping the idea into a product or a service. The start-up also has employees or partners, angel investor, the entrepreneur’s own life savings and a product in its nascent stage.
The Third Stage: Product is fit for the market and its customers
The Start-up’s product is now market ready and for field testing. Like any other testing, we have the uncanny ability to use our near and dear ones as a guinea pig. The same happens in a start-up where the product is released to a closed group of individuals, and they solicit their feedback for suggestions and improvement. Once this stage is complete, then the product is considered to be market ready.
The Fourth Stage: Expanding the circumference
This process is also known as scaling. Scaling happens when the product is a success, and there is a need for more hands on the deck to man the posts. The start-up also gradually transforms into a full-fledged company at this point(things might go south too if the product is a flop and at that time, scaling is a humongous mistake).
The Fifth Stage: The stage is set
In this stage, the start-up has become a company and can no more call itself a start-up. There will be hierarchy levels with echelons of management, a standard structure, and the other works. Yet, the need for maintaining customer loyalty, building and expanding the company and the customer base, refining strengths, products and testing boundaries will always remain as part of the company’s survival strategy.
The Start-up should also have an exit strategy in case if the product or service flunks in the market. It is also advisable for the start-ups to have a cushion to soften the monetary blows and get back on their feet for another revolution.
Hope this post was helpful and feel free to post your thoughts and comments below. Looking forward to it and
As usual Namaste, Au Revoir, Saynora, and Vanakkam to my readers out there where ever you are and whoever you are.