Let’s take a look at the Start-Up and Scale system and the stages that are involved. As you are likely aware, it easier to reach your goals if you have a system of how to get there. That is why I created the 6 Stage Startup System. Take a look at it below.
Next let’s look at each of those stages below.
Stage One: RESEARCH & BLUEPRINT
This stage is when you have a big idea – the idea that could make millions. There is a lot of excitement at this stage and involves researching your target market and the problem you are solving. The research that you’re conducting is to determine the likelihood that your product or service could become a profitable business.
After you perform your initial research and you see there is market demand, you must validate your idea before going any further. Once you have validated your product or service it is time to put your blueprint, or business plan in place. This is where you document the value your startup creates, who it charges for that value and the steps required to achieve the overall goals.
Stage Two: ESTABLISH & PROTECT
Once you have your blueprint in place, you must establish your brand and have the correct company structure. Intellectual property also needs to be protected as well as other important assets. This stage provides the vital foundation on which to build your organisation.
You will also be establishing important relationships with a co-founder, employees and suppliers. You will also put legal documentation in place for further protection.
Here, you will need to refine your company’s vision and you should also start thinking strategically about building a team. At this point, you should be comfortable with the conclusions and hypothesis reached in the previous stage, in preparation for the creation of your product or service.
Stage Three: CREATE & PROMOTE
This stage is where the rubber meets the road. It is product (or service) creation time. You will begin to build on the solid foundations that you created in the previous stage and create your product or service.
Once version one of your product or service is completed, you must take it to market and do everything possible to find your early adopters. You must keep in close contact with these users and listen to what they say so you can constantly improve your product or service. Your focus should be on turning early adopters into raving fans.
Stage Four: FUNDING & TEAM
Now that you are getting some traction in the market and you are gaining traction in the market you may be seeking further funding. There could be more funding options than you might think. We will discuss them.
You can ramp up development and establish Key Performance Indicators (KPI’s) and begin to market to a slightly larger section of your target market.
You will also be looking to hire key personnel, including your board of directors. Hiring takes time, so we will look at strategies to make this quicker and easier.
Stage 5: SCALING
Preparing to scale can be just as much work as the scaling stage itself. You begin to get your ducks in a row to prepare for the scale at this stage, as your product becomes more established in the marketplace.
Then the scale stage begins. The KPI’s are regularly measured through customers usage and revenue. Investors will be expecting to see growth as you expand your management team in key areas. To allow the company to grow, improvement in business and product is achieved and better processes are implemented, and systems are refined.
As your company begins to scale, it is no longer just a business – it’s an organization with a hierarchy, a company culture and of course – a recognised brand within your industry.
Stage 6 – Exit
Next, all your hard work has paid off and you’re ready for the exit stage. If you are not doing well, insolvency may be on the horizon. However, if things are going great like you planned you may want to sell out.
Alternatively, you may receive an incredible offer from a company who wishes to purchase shares in your startup that you simply can’t pass up. There is also the possibility that you may reach the pinnacle of entrepreneurship and decide to take your company public.
Next let’s look at each of those stages below.
