The Four Stages of a Start Up Business
Date: 03/05/2007
The Embryo Stage
The embryo stage is the starting point of any business. It begins with conception and ends when the egg hatches and the chick appears. This is a very formative stage and determines what the enterprise will look like and its direction. It is its potential that is being developed. The embryo stage is crucial for any enterprise whether it’s a commercial business , or a social or aesthetic understanding. It is the ‘getting ready’ stage where the founders and the opportunity may have already come together and, as happens in conception, the characteristics of both will now be in the embryo. The point at which a legal entity, such as a company, is set up will depend upon the local circumstances; although it is best to do this as soon as possible because it ties the founders into the project and makes for a sharper focus for all concerned. It also helps to resolve any questions of commitment before they become a real problem.
The Nurture Stage
Many enterprises find it difficult to take the step that finally gets a reliable product out of the door to a real customer. Like the chick that has to be fed and nurtured by its parent, the enterprise needs to be helped along through this stage. This is the point at which the business incubator can be so important in providing a supportive and nurturing environment. It is a very formative time for the entrepreneur and the team as the business becomes a reality. Their learning curve is probably at its steepest in this stage.
The Fledgling Stage
In the fledgling stage the chick loses its down and grows real feathers as the enterprise begins to look like a serious business. The dependency on outside help is steadily reduced as the baby bird learns to fend for itself. It is able to fly greater and greater distances and find more of its own food. Here there are less new tricks to learn, but the enterprise has to become more proficient at doing them. Speed of response and finding resources become second nature. Staying alive becomes much easier and the enterprise is less vulnerable to predators or accident.
The Take Off Stage
This is the stage to becoming a viable and growing business. The enterprise either ‘takes off’ or else remains as a small business. The difference between the real entrepreneur and the lifestyle entrepreneur is now revealed. The lifestyle person is quite happy to settle down maybe in a niche market and the enterprise matures and settles down. The true entrepreneur is stimulated by what he or she has already achieved and is now ready to race ahead. It is here that a market share is achieved that puts the new business among the leaders, if not in the lead.
