Now start-up have five stages not four stages.

Most of us know that we have four stages in our start-up journey to win our life changing opportunity. but in piratical Nine out of 10 startups fail.

What is the issue in start-up, the actual answer is we don’t have issue we have many issues in our start-up journey but very important issue is founders are not spending enough time for their market research. so i think we have to introduce five stages in our star-up journey instead of four.

1, Pre Start

In pre start-up we have to collect possible data from our customers to validate our idea with market need so we will know our idea is worth to start-up or to start with next idea. because it’s fine to fail in paper but once you start our start-up we cant afford any thing to lose.

2, Start UP

This stage can be a fight for most businesses. Sure, being a part founder can be very exciting — but, not easy?.

Typically at this stage, a business will be bootstrapping, which means funds are extremely limited and there’s a high risk of burnout for the business owner.

Common Challenges:

  • Limited resources
  • Poor cash flow management
  • Pricing products/services too high or too low
  • Preparing a realistic budget
  • Lack of processes and systems

3, Growth

At this stage, your business is growing you have got clients and you are started hiring.

But, This stage in our journey can get confused really quickly when our operations can’t keep up with the business flow even if our business make more sales we may not be making profits due to increase in our expenses.

Common Challenges:

  • Cash flow, cash flow, cash flow
  • Operations overwhelmed
  • Building to support growth today and in the future

4, Maturity

This is the stage when your hard work seems to be paying off, you’ve got your systems and processes fixed, and you may want to consider moving towards selling or scaling the business.

Common Challenges:

  • Operational inefficiencies
  • Hiring, training and managing staff
  • Poor planning and execution

5, Exit

Here are the most common exit strategies and considerations these days for planning purposes.

  1. Merger & Acquisition (M&A)
  2. Initial Public Offering (IPO).
  3. Sell to a friendly individual.
  4. Make it your cash cow.
  5. Liquidation and close.