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Four Stages of a Startup, What You Need to Do in Every Stage

A simple must-know guide for creating a new startup.

Starting a new company is easy. But growing and stabilizing one is not. Especially, before getting any funding/investments, you are more or less on your own. In this article, we will examine the four stages of a startup, which I define as idea, startup, traction, growth, and the important to-dos at each stage.

My Four Stages of Startups
1. The Idea Stage
2. The Startup Stage
3. Traction Stage
4. Growth Stage
Photo by Ketut Subiyanto from Pexels

1. The Idea Stage

In this stage, you do not have any prototypes or functional services yet. There is only a definition of a problem and an idea for a solution to it. It’s important to test your ideas in this stage. You won’t be able to fully test your idea without a prototype which means it has to be at least perfect on paper.

Make sure you get opinions from diverse groups of people, not just your team and potential customers. It is also good to see how seemingly uninterested people respond to your ideas and concept. The key is to see people’s reactions from various perspectives.

Photo by Akson on Unsplash

As you get more and more input, start narrowing down your sample to your potential customers and get more specific responses. Surveys, and focus group interviews work; utilizing social media to recruit participants might be a good idea.

Lastly, use all the responses you have collected to clarify the problem and solution(s). Create data for the next step, product/service design and calculate necessary costs.

2. The Startup Stage

In this stage, you want to prepare your prototype, and begin beta testing with real customers. Again, collect user data and feedback. Additionally, really dive into finding your customer base and product market.

There are so many things to do in this stage, from organizing a team to service/product branding to attracting investments to improving your product. This is also the stage where most startups fail.

Photo by Startup Stock Photos from Pexels

3. Traction Stage

By this stage, you’ve likely found your customer base and a product market. This is the stage where your products should be beginning to stabilize(has no bugs). You should be working to attract institutional investors to move on to the next stage. Additionally, you should be focused on customer retention and attracting new customers. This is also the stage when most startups begin to identify their unique company culture and values.

Photo by Etienne Martin on Unsplash

4. Growth Stage

If you’ve made it this far, you have a clear picture of who your customers are and are in a good place in the product market. You have a good amount of fixed-customers who provide income kn a regular basis. Most importantly, this is the stage where your company truly begins to grow exponentially.

Photo by Chris Liverani on Unsplash

We’ve looked at the phases of startups and the important things at each stage, very simply. It’s important to keep in mind that startups can fail for any reason, including luck. Yet, creating a startup also allows you to turn your dreams into reality, and earn money at the same time, if you are successful.

Programmer · Investor · Writer · Coffee Lover | You can buy me a coffee here: https://www.buymeacoffee.com/Z3qt81J or follow me on insta: @_shinwookim

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