Everything You Need to Know About Startups Growth Lifecycle

AaronVick - Everything You Need to Know About Startups Growth Lifecycle

AaronVick - Everything You Need to Know About Startups Growth Lifecycle

Everything to Know: Business Life Cycle for Startups

The business life cycle of a startup is an important part of understanding the journey. Read this article to learn everything to know about startup growth.

Are you thinking about launching a startup?

Creating a startup may at first feel like an intimidating journey.

You may waver between bouts of excitement and anxiety as you surpass certain entrepreneurial challenges.

The startup life certainly isn’t for everyone, but it’s definitely for you.

The most important thing to have before launching any business is knowledge.

Specifically, understanding the business life cycle of a standard startup can be immensely helpful in navigating those first few months and years.

In this post, we’ll take a close look at this process so that you can be ready for every startup milestone!

Stage 1: The Idea Stage

In many cases, this is one of the most exciting stages of any business life cycle. You have an idea for a product or a service that you simply can’t stop thinking about.

It may feel zany at first. It may even feel unachievable. Nonetheless, you’re excited about it.

In fact, you believe that you’ve identified a solution to a problem that’s pretty much universal. If it’s not universal, you know that there is at least a growing need for something you’re determined to satisfy.

The idea stage is often called the “problem” stage for this reason. That’s because successful startups will be built around a “solution” model. Basically, you see a problem out there and you have an idea about how to fix it.

It could also be more subtle than this. You may see a need for something that people don’t realize they actually have. Or perhaps the new service you’re dreaming up doesn’t exist yet.

This is a delicate part of the business life cycle. It’s important for entrepreneurs at this stage to clearly identify the problem or need that they are responding to.

They also have to clearly identify how they’ll resolve it. This upfront work can propel startups into the next stage effectively.

Stage 2: The Idea Testing Stage

A lot of people lump this stage into the previous one, but I think that it’s important to separate the two. That’s because Stage 2 is all about idea feasibility.

This is where startups perform initial research, figuring out how and if they can make it happen.

At this stage, startup owners identify their target user or audience. They may do this through conducting surveys, interviews, and general polling.

In fact, engagement with potential customers is critical at this stage. Some entrepreneurs value in-person interviews with target users.

Others may use crowdfunding platforms or social media to gauge interest and response.

This is where human psychology plays a huge role in the standard business life cycle. The more a startup can understand the nuances of the problem or need itself, and its affected users, the more effective it will be with its launch.

Stage 3: Preliminary Go Time

Stage 3 isn’t a full-fledged startup launch, but it is a small, low-risk launch. In this stage, startups may test out products or services with a select group of initial customers.

This stage is fairly complex and can take some time depending on the business model and type. Some experts will call this stage the MVP stage: Minimum Viable Product.

This means that startups test a product’s viability while keeping investments and costs at a minimum.

Here’s an example. Let’s say an independent artist wants to set up a comic-book business.

This artist may set up a profile on an artist crowdfunding site like Patreon. She may offer rewards to initial donors in the form of comic books themselves to see the response.

Here’s another example. Let’s say that you’ve garnered interest in your new multi-vitamin for dogs. You may send out a few product samples to select followers or subscribers to start and check in on their responses later.

Or, you could simply sell your service to those first few customer bites.

This can be a make-or-break stage for many startups, as it’s all about how viable your product or service really is.

Stage 4: The Check-In

After the Preliminary Go Time, most startups will use the interim to check in with those first customers or patrons. Entrepreneurs may send out surveys for feedback.

They may use this time to gauge what’s called product-market fit. Basically, this means how well your product or service fits the specific market or target audience.

Some startups will be able to gage this through evaluating their NPS ratings. Or they may gather online review through portals like Yelp or Google Reviews.

Others may launch a social media campaign that provides discounts to any followers who submit feedback on product experience.

In this stage, startups use this feedback to tailor their efforts accordingly. They may hone their audience further, identifying who’s really getting the biggest benefit out of their product or service.

They may also use this feedback to streamline marketing efforts. This may mean delving further into their market’s psychology and identifying the language they want to use in reaching that market.

Lastly, startup owners identify ideal channels for reaching customers at this stage and get those fired up.

Stage 5: Execution and Growth

At this point in the business life cycle, a startup is ready to take off. Savvy startup owners will have identified what works in order to keep conversion and retention rates high.

In order to really take off here, startups may fully exploit what’s working best for them. For example, they may hire more marketing team members to triple advertising efforts.

Or they may focus on expanding a robust local audience or developing more of a hot product.

Once a startup truly takes advantage of successful channels and funnels, it can experience stability and eventual growth into a full-fledged business.

The Business Life Cycle

It’s important to anticipate all stages of a startup’s life cycle, even if every startup has its own unique journey. Doing so can mean a faster gateway to success.

From the Idea Stage to a business’s Execution and Growth Stage, it’s critical for all entrepreneurs to engage with their market, stay on top of data, and be persistent.

I’m Aaron Vick, and I couldn’t be more excited to take you through this life cycle successfully. Let’s connect now to have a conversation about your startup vision!