1. Bootstrapping: At a very early level, the entrepreneurs themselves will be the ones to commence actions with the goal of turning their ideas into viable companies. The early investors in a startup company are typically close family and friends of the founders. This stage carries a higher risk because there is a tremendous deal of ambiguity. Despite this, these would-be business owners continue to work on the development of their ideas, as well as the formation of teams, the use of personal assets to support the idea, and the demonstration of the idea’s feasibility. It also indicates strengths in management, including financial management, the ability to form teams, and other areas.
  2. Seed Stage: During the seed stage, a new company seeks financial backing by cultivating a small firm to expand. Possible sources of investment capital include angel investors, incubators, public assistance through crowdfunding, etc. During this stage, entrepreneurs may construct a business plan, a mission statement, and goals. Some entrepreneurs establish advisory boards to access seasoned consultants and gain direction. A timeframe is set, and resources and experience are determined to produce the product or service. This stage is crucial for entrepreneurs to ensure success and credibility in the market. During this phase, the starting capital is put to use. Creating a business model, obtaining access to the market, seeking support from accelerators and incubators, and investing for growth are all necessary steps in this process. At the conclusion of this stage, an evaluation of the new business’s success is carried out by doing a valuation of the startup.
  3. Growth Stage: An organisation experiences a substantial metamorphosis into a thriving entity during the growth phase. In this stage, a substantial clientele is established, and the flow of funds tends to be more stable. A company’s reputation can enhance the recruitment of highly skilled individuals and the acquisition of financial resources. As a part of the startup team, you have the responsibility to stay vigilant and aggressively seek more opportunities to increase the firm’s customer base. This will help the company grow to the next level.A startup has attained the status of maintaining a consistent customer base and a reliable   revenue stream during its growth phase. You may decide to augment your team during the growth phase in order to accommodate the increased workload. During this phase, the         principal emphasis of a startup is on ongoing development, with the ultimate objective of   customising or improving its products or services to more effectively meet the needs of clients.
  4. Established Stage: An enterprise has a substantial transition into a thriving entity during the established phase. In this stage, a substantial clientele is established, and the inflow of funds tends to be more stable. A company’s reputation can enhance the recruitment of highly skilled individuals and the acquisition of financial resources. As a part of the startup team, it is important for you to be awake and aggressively seek more opportunities to increase the firm’s customer base. This will help the company move forward to the next stage of growth.
  5. Expansion stage: In this phase, a business undergoes an increase in new avenues for distributing its products and accessing different markets. This period facilitates the investigation of innovative enterprises and lucrative prospects. This includes activities such as launching a novel product or service or venturing into a previously untapped geographical market. To determine the most efficient methods for growth, it is necessary to assess the organisation’s long-term objectives.
  6. Stage of Maturity: A firm reaches the maturity stage, often referred to as the late stage, when it has consistently generated a stable level of revenue from loyal, repeat consumers for a significant period of time. During this stage of the organisation’s expansion, the proprietor or founder typically takes on a diminished role in the day-to-day operations of the company, while a management team assumes responsibility for the assigned tasks. The company is highly likely to have a dominant market presence, and consumers now possess a clear and specific perception of the brand. In addition, businesses may choose to commit money towards methods aimed at personnel development and retention in order to achieve long-term prosperity.
  7. Departure Phase: The decision to continue growing as a mature company or to exit ultimately depends on your objectives, market conditions, and the opportunities at hand. Contingent on the trajectory you ultimately select, commemorate your accomplishments while remaining steadfast in the principles and aspirations that initially guided you. After the startup journey reaches its zenith with the maturation stage, during which the company attains stability, recognition, and market dominance, various exit strategies, including mergers and acquisitions, initial public offerings, and remaining privately held, may be considered at this juncture. Maturity presents an individualistic assortment of obstacles and prospects. Constant innovation and a customer-centric approach are essential for maintaining a competitive advantage. To propel future growth, foster a culture of continuous refinement and learning, and invest in research and development, you may also investigate opportunities for international expansion, product or service diversification, or strategic alliances with larger organisations during the maturity phase. Implementing these initiatives can assist you in strengthening your market position and gaining access to additional revenue streams.

 

Almost every entrepreneur has to deal with the question of where to start and what steps   need to be taken in the correct sequence before a thriving and successful company can be established. The above-mentioned are the various stages that a startup generally has to go through.