Startup or growth?

How do you know when your start-up has moved into the growth stage?  This can be confusing, especially for the first-time business owner.

The start-up stage is the period come after completing the seed stage; getting funding support, formalizing the business name, business plan, etc. The start-up stage begins when your company actually starts putting the business plan into practice. You are product testing, developing a customer base, and collecting feedback to enhance the product. The goals of businesses in this stage are customer base, market presence, and save money flow. Some start-ups make the mistake of thinking they’ve moved to the growth stage because they are experiencing forward momentum.

The growth stage truly begins when the startup has a consistent customer base and a steady source of income. As cash flow increases, so do operational costs.  Hiring the right people to support the business is important at this stage as is having a clear business model and a refined marketing budget. At this stage, a business should be examining processes for efficient workflow. Automation through technology and outsourcing functions like HR and Payroll save on headcount costs while providing needed services.

It’s easy to want to move fast when building a business, however; patience and consistency will help your business have a solid foundation on which to thrive.