According to the Startup Genome Project, more than 70% of startups fail due to premature scaling or scaling in the wrong phase of their growth. It is important to recognize the stage your startup is in to anticipate (time and budget) and plan when, how to scale and by how much.
Here is an overview of the different stages of a startup
You have an idea but not a company yet, it is now time to plan your business. This phase is primarily focused on identifying a problem, is the problem big enough that a solution for this problem could become a business. At this stage, you will validate your idea and the potential market for it. This is often the stage when entrepreneurs join an incubator. The incubator will provide a first time entrepreneur with the tools to turn an idea into a business.
Business Development Stage
This phase is also known as the product and market fit stages. Scaling during this phase means focusing on the product ecosystem and develop the product with an emphasis on:
- Product/core features
- Identification of the market fit
- Definition of the potential customers
- Develop an MVP/Beta
This is often the stage when startups join an accelerator program. One of the benefits of the accelerator program is meeting mentors, potential advisors, and potential investors. Most accelerators will have a pitch day at the end of the program, exposing you to numbers of potential investors.
Launch & Growth Stage
You now have a company, you have an MVP/Beta and you are starting to have traction with registered customers. We combined those stages because they go hand in hand and need to be acted upon together. You are now ready to officially launch your product and are actively fundraising for your seed round (if this is the path you have chosen). Your business growth plan is being executed. You are regularly talking to potential customers, seeking out tech startup funding, and looking for feedback from potential mentors. This is the ideal stage to join an acceleration platform or attend an acceleration Bootcamp. The acceleration platform will provide you with the customized services from leading consultants while matching you with potential mentors and getting you ready to fundraise. The acceleration Bootcamp will allow you to spend a week diving into your startup and getting feedback from leading mentors.
You are ready to scale and growth and should be well on your way to:
- Seek Series A funding
- Have you customer acquisition model
- Hire key member of your executive team
- Perform any back-end Improvements
- Have a repeatable sales process
Preparing and understanding the stages your startup will or is currently going through is essential. Know that you have options each step of the way. MarketFit offers programs and a Bootcamp for second stage startups in the launch and growth stages. Ranging from 1-week startup bootcamp to acceleration programs lasting from 1 to 12 months. MarketFit collaborates with you to understand your needs and capabilities (time and budget) and finds a potential program fitting to your needs. Visit MarketFit today to learn more about how we can help you be successful, https://www.marketfit.com/#Contact.