Each startup goes through several startup stages in its development, from an idea to the reduction and capture of a significant market share. The load life cycle model is described by a thrust map. Accelerators are used to identify the bottleneck of a startup and focus on the most appropriate tools and actions for the current stage of development in order to initiate changes that will help founders not only overcome barriers, but also reach a new level of business quality development.
First, a startup needs to validate the customer’s problem and make sure that the product or service they are developing solves it. Then an MVP is made, then the market and value are confirmed by sales, channels are tested to find those where it is possible to scale and maintain a positive financial result. Then comes the phase of multiple growths, when the startup gets the entire available local market, after which it can grow only through mergers and acquisitions and entering foreign markets.
STEP 1: CONFIRM THE PROBLEM AND THE SOLUTION.
You have an idea for a product that you can’t stop thinking about, perhaps the idea was born from your need, and that’s a good start. At this point, ask yourself two questions:
1. What problem are you going to solve?
2. Does the solution I suggested effectively solve the problem?
If you have a clear answer to the first question and a firm “yes” to the second, then you have the right problem-solution combination, and this hypothesis needs to be quickly tested.
STAGE 2. MVP DEVELOPMENT.
The purpose of this step is to test your product hypothesis with the least amount of time, money, and resources. With the help of MVP, you study the client and confirm the application with minimal risks. After releasing your MVP into the wild world of the market, focus on attracting product users. This is the time when the first sprouts of the seeds you sow to satisfy the needs of the customers will be visible. For early adopters, there is no set recipe for how many there should be, but enough users are needed to judge whether customers are using your product or not.
STEP 3. CONFIRMATION OF PRODUCT FITNESS WITH THE MARKET.
The product has traction. You learn about your customer and move iteratively, get paying customers, make repeat purchases, continue to use your product regularly and maybe even recommend it to your friends. These are clear signs that you have found the right product on the market. Customer retention is the best indicator for adapting to the grocery market. The higher this indicator, the more in demand the product in the market. Write these words to yourself in a prominent place, and always measure the level of customer retention. Use this metric as a guiding light for your startup.
STEP 4. SCALE.
The shrink phase is the time when you need to transform the hypothesis testing process into a managed growth pipeline. At this point, you have an idea of which channels are working. You feel confident driving conversions and increasing customer loyalty. It’s time to launch full-scale growth. Do this by investing in channels that work.
The key to effectively achieving the goal at this stage is to add groundbreaking people with experience in your priority channels to your team. For example, if SEO is the most promising growth channel, hire an SEO specialist to join the team. If you think that viral marketing is the best tool for you, then hire a specialist with relevant experience in viral marketing to your team.
STAGE 5. MATURITY.
Growth starts to slow down as the company matures. But the TOP of the world’s technology companies do not stop and grow constantly, this is hardwired into their culture and corporate DNA.
There is always room to grow. LinkedIn is 20 years old and continues to test growth hypotheses. The same goes for Facebook. They have more than a billion users, they buy applications and test something. Stable growth is not the same as ticking the box and leaving to do something else, it is a constant search for new growth points.
The Digitalsuits team hopes this article will help you in your endeavors!