As in all types of businesses, startups have lifecycles. Although there are several factors that influence the scope of the business, it is essential that the entrepreneur knows all possible a startup phase.
There are 7 major a startup phase. Not all companies will go through all these phaseNor the order discussed in this article. For example, some will go from startup stage to the exit stage, while others remain on stage established.
What will determine the success or failure of a company is its ability to adapt to the changes of the Lifecycle. Thus, it is crucial to realize that phase your company is in order to prevent certain common challenges and thus make the business decisions right ones.
The idea is the beginning of a startup phase and requires multiple tests on their phase Home to ensure that this is feasible. So it is necessary to obtain advice and opinion about the potential of the business idea from as many sources as possible. Examples of these sources are family, friends, colleagues and industry experts.
Similarly, business success will depend on the entrepreneur's capabilities, market availability and the associated financial base.
The main difficulties in this phase They are market acceptance, finding a market segment where needs are not well explored, establish a business structure and determine the profitability of the idea.
as this phase there are no customers or market, obtaining money has to come from the entrepreneur himself, family and friends. The alternatives are suppliers or subsidies from the government or else Early rounds of investment.
Once confirmed the potential of the business idea and the company legally established, it can be said that this is the stage startup. in this phaseThe product is ready and is the first sales. It is important that this be adaptable to feedback obtained by the first consumer and market needs, always with the aim of developing the best version of this.
Here, the focus is to establish a customer base and market presence and save money flow.
The main difficulties are the establishment of a secure customer base and monetary management. In addition, the sales expectations of management and strengthening market presence are some resistance.
typical investment sources in this phase They are the same as in phase above, including the entrepreneur himself, family, friends and government subsidies.
The business is generating revenue and consistently come up more and more new customers. As a result, the running costs become increasingly attenuated and new business opportunities are opened.
At this point, competition is emerging. The main focus is to manage the business properly in order to deal with the increase in sales and customers are therefore advised the recruitment of new professionals.
The main difficulties in this phase It is in the correct division of resources in the new requirements: managing increasing levels of revenue, serve customers, dealing with competition and hiring new workers.
As sources of money at this stage are banks, profits, partnerships and concessions.
The business has matured into a successful company with its presence in the industry well established as well as possess loyal customers. Sales continue to grow, but in a controlled manner making the business life in a routine. in this phase, The business should focus on the productivity and continuous improvement.
The difficulties experienced in this phase It is to continue to keep the focus of the company since the market is persistent and competition is increasing.
typical sources of money are banks, investors, government and the profits on product sales.
This is one of the last a startup phase. Here, the business has a high stability level, appears the desire to broaden the horizons of this and enter new markets and distribution channels. Therefore, it should be done careful planning of this expansion. The analysis of resources, effort, costs and possible returns should be considered, however, without neglecting the impact it will have on the current quality ensures that the product to existing customers.
The focus will be adding new products or services to existing market or expand the business into new markets and new types of customers.
in this phaseThe main difficulties are the development of an appropriate plan to expand the business in a new market or developing a new product and deal with increasing competition in the market.
Banks, investors and new partners are the financing source business who are in this life cycle phase.
Changes in the economy, society, market can dramatically lower sales and consequently the profits of a company. This should seek new opportunities and business ventures as well as reduce costs and find methods to sustain cash flow.
The main difficulty in this phase It is to determine how long the business can withstand the negative cash flow.
Suppliers, customers and the entrepreneur himself are the sources where the business can get money in this difficult phase.
At this time the company meets with steady profits resulting from good management of the phase earlier. Here, the developer has two choices: continue to expand the business or get out of this, which is a great opportunity to profit from this hard work. On the other hand, it may also represent the end of the business resulting from a bad experience in the market.
The difficulties encountered in these last a startup phase stand out in the event of sale, determine a realistic value and appropriate business always taking into account the current market value. In the event of termination, you must deal with all the financial and psychological aspects of people involved in this company.
It is advisable to the advice of financial advisors in order to define the best tax strategies for selling or closing business.
In short, it is important to reinforce that understanding what the phase that your startup and which is phase to be achieved, it is essential to the success of this. Once investment has a key role in the success of a business, the entrepreneur must know the investment rounds existing as well as financing source possible.
However, it is also vital to understand that to achieve the desired success so you need a lot of patience and dedication, since this route could take years to be reached.