STAGES OF STARTUP DEVELOPMENT OR SEVEN PILLARS OF SUCCESS

Being an entrepreneur is not an easy task, you take a lot of risks on your back. Risks are unpredictable in nature and no matter how much you prepare for it, there will come a moment when you realize- “the higher the risk, the higher the profit”. Most of the start-ups' organizations fail because they are not able to handle the risk and all their efforts establishing their enterprise go in vain.

It is very necessary to have a clear picture of where your organization is heading. You need to be acquainted with the drift of the stages in a start-up; like what is the accurate period to raise the funds and more.

A START-UP can go into many phases but the question arises- what is actually a start-up?

Well, for the additional information, a start-up is a company founded by an entrepreneur that provide their services or product to meet the market demands. A start-up may be funded by founders, families or outside investors and no one wants to lose their hard-earned money.

The main stages of startup development or seven pillars of success include:

1)  Idea stage

What a the cornerstone of every business is the idea. An idea can be a new & innovative or can be a furbished idea of old business. An idea for a business can hit you at any time- during a brainstorming session or just a hit randomly. You have to be real-cautious here as the money involved in your savings. By bootstrapping, you can sustain a company and make a business plan which is as better as a business model at the early stage.

2)  Near and dear one's stage

Not only the idea is enough to carry your organization to heights, but your funds will also eventually dry out and then who will help you are your near and dear ones. Considered as an important stage, your connections will help you attract more investment. In this stage, the founder focuses to bring their product to market with the help of outside support. With the right business plan in hand, you can now focus on developing the market capturing prototype of the product such as a demonstration video.

3)  Pre-seed start-up stage

The time has come where you really want to find out the needs of the market i.e. market validation.  You get the answers to the questions and you validate the product.

·       Is the product that your customers really want?

·       If no, then what could be done to meet their demands?

To get all the answers, you need to build an MVP i.e. minimum viable product, it is a proven method to validate an idea. MVP provides the necessary features needed and is a presentation of the product.

4)  Seed start-up stage

The name of this phase clearly justifies its role in the start-up culture. The stage assumes that your product is running up in the market making a revenue regularly while acquiring new customers. In order to grow at a higher pace, become larger and become a brand in the market you need to set yourself for the seed start-up stage. The seed-stage collaborates with investment firms rather than individual investors. In exchange for funding the organization, they get some share of your company’s equity.

5)  Early start-up stage

Considered as important milestones, you need to provide investors a proof that your business is running smoothly and have a flow of revenue, clients, and pursue an intact business strategy.

Early-stage start-ups can lean on the help of investors to reach a new height, satisfy market demand and make new markets.

6)  Growth stage

At this stage, start-ups are now termed as organizations and they wallow in the glory of the success. Most of the entrepreneurs focus on new methods to secure the next fund. Banks provide some nice benefits such as loaning money at lower interest rates.

This is the stage where everything is in motion and you prepare yourself for the future.

7)  Exit stage

This stage assumes that your organization has offices across the country and you are established globally too. Now, the product you provide is a brand and holds a strong market. when everything is done, it is now time for the initial public offering aka IPO. 

IPO is the first time when a start-up makes its corporate shares and make them purchasable to the public. This stage is the exit or the last stage that allows organizations to raise funds from public investors. It helps to plan your organization’s services for the long term and boost the organization's prestige. This stage may involve high profile partners and clients. you can always go for this option as per your favorable terms.

Conclusion:

Now, you are aware of the seven pillars of successful startup or stages of start-up development. all start-ups may not lead or follow the same steps, it can vary from product to product or service to service. Each startup might have its own way or web development. The major key factor for a Start-up to be a well- established organization is the funding, so gain more funding as much as you possibly can.