What are the key phases in a startup's development?

Startup journey: from idea to growth

Once a startup obtains the resources we mentioned in one of our previous articles, it can theoretically grow. Having studied a range of startups and supported them in different sectors, I have noticed that their evolution follows more or less the same path. In this article, we'll look at the key stages in a startup's journey, without forgetting that these entities are subject to more risks than normal businesses, and can therefore die at any of the following stages.

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1 - IDEA

The birth of a startup undoubtedly begins with an idea.

The entrepreneur

The entrepreneur's journey often begins with personal reflection, an observation of the world around him. His past experiences, his technical and managerial skills, as well as the resources at his disposal shape his approach. Thus, it is often a subtle combination between know-how and intuition, between expertise and creativity.

The idea and the opportunity

The idea can also arise from enriching conversations and stimulating exchanges within the community. These interactions make it possible to detect opportunities and needs that are still unsatisfied. The entrepreneur's personal experience allows him to recognize gaps and imagine useful solutions.

2 - CREATION

Once the idea is formed, it is time to move on to the creation phase.

Skills search

To turn an idea into reality, it's essential to surround yourself with the right people. The necessary technical and human skills must be brought together. This can be done by drawing on the entrepreneur's existing network of contacts, or by calling on potential partners. For a digital startup, for example, it will be essential to recruit a developer to build the solution.

Proof of concept (POC)

The Proof of Concept stage allows you to test the idea or concept with a market sample, validate its viability and adjust the elements based on the feedback obtained. It is a phase of experimentation where each feedback is a gold mine.

First results

The first results obtained through the POC make it possible to verify whether the concept works and whether it is validated by this first market sample. This initial feedback is essential to guide the next stages of development.

Search for partners

Using the team's network to find a potential first partner is a key step. Presenting the Minimum Viable Product (MVP) to this partner allows you to collect external opinions and create strategic alliances for the rest of the project.

3 - LAUNCH

This stage marks the beginning of the product or service launch.

Key recruitment

At this stage, it is necessary to recruit other specific talents, in particular: a community manager to develop the presence on social networks and create content and a salesperson to approach potential customers.

Improved MVP

Before the official launch, the startup will need to improve its MVP. Adjustments made at this stage ensure that the product meets user expectations and is ready to be presented to the general public.

Launch planning

Choosing a date in synergy with major events maximizes visibility. It's about creating a positive dynamic around the launch and placing the product in a favorable context.

Marketing and visibility

Preparing advertisements, contacting influencers, organizing interviews are all necessary actions to create visibility. It is crucial to have an effective communication strategy in place to attract attention and generate interest.

4 - FIRST BIG CONTRACT

Winning a first major contract is very important for the survival of a startup, for a number of reasons. It doesn't have to be one big contract, it could be a massive number of customers over the same period, but the aim is to have a significant inflow of cash to keep the business going, which will serve as working capital for the future.

Volume

Ensure a certain profitability. This first contract makes it possible to generate significant income and prove the economic viability of the project.

Visibility

Generate buzz and press around this initial success. This helps to strengthen the credibility of the startup and attract new customers and partners.

Motivation

Encourage the team to continue their efforts. The realization of this first contract is a source of motivation, it proves that the project is on the right track.

5 - APP PROMOTION

It is important to continue to attract and retain customers through creative initiatives such as competitions and giveaways.

Loyalty

To keep users engaged, it is essential to come up with original ideas. Contests, giveaways, special events are all ways to keep people interested and strengthen ties with the community.

Highlighting achievements

Highlighting the achievements and positive impacts created in society strengthens the credibility and appeal of the startup. This also helps to make new users aware of the company's values and mission.

6 - CRISIS MANAGEMENT (BUG)

For digital startups in particular, technical problems may arise as the number of users increases. Non-digital startups, on the other hand, may face production and logistics challenges in meeting growing demand.

Reactivity

The ability to react quickly is crucial to avoid mass bad feedback. Every issue must be handled diligently to maintain user trust.

Costs

Corrective actions can be costly, but they are essential to ensure quality of service. Resources must be allocated effectively to resolve technical and operational issues to continually improve products and services.

7 - FINANCIAL AND OPERATIONAL REVIEW

If you have read our article on financing early-stage startups, you will have understood that founders often have to finance the beginnings of their startup from their own pocket. At this point, most startups do a recap of everything that was spent, including:

Server fees (especially for digital startups)

Essential to ensure the availability and performance of the application, website, etc.

Employee salaries

Recruiting talent requires significant financial investments, especially in the early phases of development.

Legal fees and marketing

Legal and promotional aspects should not be neglected. They are crucial for the protection and visibility of the start-up.

Commitment of the founders

Founders are often 100% involved in the startup's operations, sacrificing personal time and resources to grow the business.

8 - FUNDRAISING

Once the balance sheet has been established and the number of customers continues to increase (startups being new businesses with high growth potential) it is time to expand the business. To develop the startup, you must:

Find investors

The search for investors is a strategic step. This involves convincing partners of the viability and growth potential of the project.

Transfer a share of capital

In exchange for funds, a share of the company's capital is often given up. This operation makes it possible to finance the next phases of development while sharing the risks with investors.

9 - GROWTH 1

Once the funds are raised, the startup can make its first significant growth. This phase involves:

Expand the team

Recruit new talent to support the growth of the company.

Open new premises

Geographic expansion is often necessary to reach new markets and strengthen the presence of the startup.

Continuous promotion of the app (especially for digital startups)

Staying visible and attractive to users is a long-term task. Promotional actions must be constant and well targeted.

10 - BLOCKS AND PROMOTION

It is worth noting that there may be bottlenecks to growth, such as existing laws in new regions.

Anticipation of blockages

Each new region may present specific challenges, particularly legislative ones. It is essential to anticipate them and prepare for them to avoid major obstacles.

Buzz effect

Promotion before launching in new cities is crucial to create buzz. This helps generate excitement and interest from the first operations.

11 - FUNDRAISING AND GROWTH 2

To continue growth, it is necessary to seek additional funds.

Fundraising

Investment funds can raise millions or even billions. These financial resources are essential to support rapid and sustainable growth.

Reinvestment in the business

The money raised must be reinvested in the company to improve the product, open new cities, and maintain an active presence in the market.

12 - MAINTAINING ACTIVITIES

Finally, it is crucial to:

Manage financing

Call on an accounting firm to manage financial aspects in a rigorous and transparent manner.

Manage branches

Monitoring quality and operations in the different branches is essential to maintain standardization and high performance.

Optimize operations

Continuous improvement of the application and continuous promotion of the brand are key elements to remain competitive and attractive in the market.

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To conclude, the journey of a startup is strewn with pitfalls. Although turning a simple idea into a successful business is an achievable goal; challenges punctuate every step, from initial idea to growth. To continue growing, startups must raise capital, which means mastering the art of pitching. But that’s a subject for another article… And you, at what stage of your entrepreneurial adventure are you?