The 3 Phases Of Growth That Most Startups Never Achieve

Do you want to know what building a skyscraper has in common with building a startup? In this post we’ll tell you in detail.

Building a business without having resources? That is the big magic many start ups achieve. The other big majority fail because even though they try everything they cannot make the trick work.

Technically it seems impossible what those that know how to build a company know how that works. And It has a lot to do with renting the first floors of a building that doesn’t yet exist.

You may not have the resources, but you have to sell. So, when you start to build the first floor you can start renting the second.

Any startup needs to go through these 3 steps to solidify itself:

1. Generate revenue with its own inertia

As you may know, you start running a business you must start with your own income. Don’t spend your time looking at what happens in other countries. Today you need to be able to generate income in the account from the first day. Its great to capture users and having loads of pageviews but what matters in the end is having money to survive. The things that help me do so are:

  • Make a launch of the company with avalanche effect to capture interest and clients from day 1
  • Have a recurring business model like subscription. Go for markets and products that can reach a benefit per attracted client.

2. Generate a structure that frees you from operative work

More than income you want benefits in the first phase. In that sense costs must be kept at a minimum. This requires typically a big part of the work that an entrepreneur has. There are even ceos that declare their own taxes.

In the first weeks this may be like these but once the first incomes start flowing in you need to externalize the tasks that are stealing your time to dedicate yourself to that which really matters.

Its about creating a structure with the benefits that you are obtaining, hire workers to finish the first layer of your building while you start the second.

What matters is that you can jump in sales through a structure that can support a growth potential.

Now the question: what happens if I don’t have enough resources to create this structure? It’s a vicious cycle that I have seen myself trapped in for years. What I would change would be:

  1. Arrive further away with the first financial revenue.
  2. Close early. If you can’t achieve new financials you must notice and throw the towel

3. Generate new income resources and or strengthen the ones that already exist.

When you aren’t worried about the day to day operations you can clos strategic collaborations that will help you grow your income and generate new lines.

Everything that you create needs to have a structure. Here many people stop and fail because they want to put their income in their own pockets and not the company.

It sounds easy but, it isn’t. most startups don’t arrive to the third phase but rather die with the first or maybe reach the second.

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