Let’s face it. In the current age of intensifying competition where companies need to take help from a professional online promotion services provider to stay ahead of the curve, most startups find it highly difficult to survive and grow. As a result, many new entrants meet a tragic end in just a few years of business. Nevertheless, the corporate world is teeming with activities of new startups every year as the joy of entrepreneurship overpasses the challenges associated with it.
Here are seven stages of startups that any entrepreneur may pass through after establishing a company:
1. The Birth
The birth of a startup occurs thanks to an idea or a concept that is thought to meet requirements of a huge audience and generate handsome profits. It is the beginning of a business cycle. It comes with the mixed feelings of excitement, thrill, and fear at once. It’s time when an entrepreneur wants to create their name on the market. Even if someone has had a million dollar idea, they may face initial hiccups from execution viewpoint. However, a clear vision and dedicated efforts can take a newbie to the next level.
2. Growth and Survival
Okay. So a company is launched successfully, and now an entrepreneur looks for survival strategies in the challenging scenario. Some entrepreneurs desperately search for angel investors while some prefer to stay independent. This is a bit tricky decision: staying independent gives more power and offers more control to entrepreneurs, but at the same time, they may have to face stressful situation arose due to lack of working capital. On the other hand, angel investors can take a sizeable chunk of initial profit making a business cycle long and complicated.
When a company sees a sudden growth, an owner loses any control on the outcome. At this stage, many startups enter into the troubled waters because business owners start getting overconfident as a result of early success. But, it is risky as such owners can end up being blindsided for the upcoming challenges. A few entrepreneurs, getting overly confident, may completely forget their desired goals while indulging in an undue celebration of premature success. The hyper stage can be considered as the riskiest stage for any startup.
After passing the survival and hyper stage, the business can get real success. It is a more predictable growth phase where the company enjoys the steady profit. It is better for a startup to stay as long as possible at this stage. It is a time when a startup looks for a fruitful and strategic partnership as other companies make it stronger than before through interdependent relations. The stage can enhance the startup’s growth opportunities and show a right direction for success.
5. Aging and Decline
This can be counted as an adverse effect arose due to the partnerships that don’t work out as per the planning. Also, if someone comes up with a better idea that makes an existing startup’s idea useless, then the startup may lead to decline. The stage offers only two options: either an entrepreneur should start again from scratch or bring a drastic change in the company’s operations.
6. Illness and Rapid Downturn
This phase is almost the last and unwanted stage in the life of any startups. We just can’t avoid it if we can’t figure out the early signals properly. It happens when the team is undecided and unable to fix the fundamental problems. Fear, uncertainties, and doubts start engulfing the startup if the management fails taking prompt and immediate action including layoffs and cost-cutting exercise.
This is a final stage where all the efforts to revive a startup go in vain. The phase comes as a result of bankruptcy or a sudden cash flow restriction. The businessperson finds all the doors shut and there is no escape. If this happens, the best option is to shut the business down because the stage leads nowhere. Though it sounds harsh, the only choice left for an entrepreneur in this stage is to take the business down before it takes them down.
How to avoid ageing, illness, and death
You can find a plethora of stuff online for establishing and managing startups. It is always better to remain well-informed with market trends and customer behavior before entering the world of startups. If a person has a clear goal and focused efforts to achieve it, his or her startup can certainly remain healthy and lead to growth.