Start-ups succeed from two angles: financial success and psychological satisfaction.
A startup with an excellent company concept wants to set up its operations. Due to the generosity of friends, family, and the founders’ financial resources, the company has grown slowly from its modest beginnings while demonstrating the value of its model and goods.
With time, the company’s clientele expands, and its operations and goals also grow. The company has quickly risen through the ranks of its rivals to achieve a high valuation, creating opportunities for further growth that could involve adding new facilities and personnel and possibly an IPO.
Reading through our introduction has put you at ease while researching your startup’s potential, right? But things aren’t always as simple as they seem; therefore, grab a pin, and let’s give you a few basics from Kaizen’s encyclopedia.
The startup lifecycle
The startup lifecycle, as defined by experts, is made up of six stages of development:
- Discovery
- Validation
- Efficiency
- Scale
- Profit Maximization
- Renewal
Experts have discovered that 74% of the analyzed high-growth internet startups did not progress linearly through the stages. The startup lifecycle failed, and the company suffered stagnant growth or went out of business. Why? They failed to follow each level and take their time because startup satisfaction isn’t achieved in one night!
Every startup’s secret weapon.
Or as we like to call it, “the war chest,” is the competitive advantage in all areas that matter, including employing key personnel, public relations, marketing, sales, and crowdfunding, which not only enables companies to exist but also expand.
The pressures of success and profitability can weigh down a new business. But no matter your level of familiarity with business finances, you should keep certain vital questions and resources in mind and seek proper consultancy and help whenever needed, because as much as you find yourself competent and knowledgeable, others can add to this equation and rise the scales of profit and satisfaction from 1 to 10.