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What Are The Various Stages Of A Startup?

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One of the most fulfilling journeys anyone can undertake is to begin a startup.  There are a lot of stories about how a startup makes it big in the market and reading them can inspire oneself to undertake a similar journey.  However, beginning a startup and scaling it up is easier said than done as there are multiple stages to running a startup.  Identifying a problem and coming up with a solution is not the only thing which matters when it comes to founding a startup but there are multiple other parameters which need to be considered along the journey.  By looking at the multiple startups which succeeded and the big picture, a startup’s journey can be quantified into stages.  Skipping any of these stages and moving on to the next stage would surely be a setup for a failure.

Read along to find out the various stages in the journey of a startup.

1) Problem discovery

Anybody can come up with an idea but the most important thing is to come up with an idea which solves a particular problem.  This stage is about discovering bottlenecks and problems faced by customers in a market.  This is the stage where a startup needs to focus on what the customer wants rather than what a startup needs to do.  This is where startups need to interview customers to find out the problems they are facing and come up with a solution.  For example, Uber discovered that customers need a simple way to hail a cab and came up with their platform which connects cabs with customers.

2) Ideating

The next stage is to find a value proposition for customers.  This begins by ideating to find opportunities and create good solutions.  There are high chances for good ideas to come up in the discovery stage during the customer interviews as they might provide their own insights and ideas.  By the end of this stage, a startup should be able to come up with a solution which solves a problem by providing a solution which an existing competitor would not provide.

3) Problem/Solution fit

There is a high likelihood of the first solution not being the right solution.  The initial plans might not work out and therefore Plan A should never be assumed as the right solution.  Sometimes the immediate solution will not nudge a customer to make a purchase.  This stage exists to make multiple iterations and if possible pivots into different product models.  During this stage, a startup needs to introduce a product design, clickable prototypes, or product features which the customers can interact with physically.  The initial problem could be solved if customers show interest and prepay for the product or have taken a certain set of actions that you can define based on your product, target and market.  For instance, in the case of freemium models actionables could mean completing a long survey, joining a waitlist and referring X number of people or applying to become a user.

ALSO READ: What Is Seed Funding And What Are The Sources For Seed Funding For Startups

4) Product/market fit

In order to go for a product/market fit, a startup would need data like customer acquisition costs (CAC) and customer lifetime value.  This could only be done with a launched product which is in use.  One of the best indicators for a good product/market fit is acquiring customers at a lower acquisition cost.  A CAC can be calculated by dividing all the costs spent on acquiring more customers (marketing expenses) by the number of customers acquired in the period the money was spent.  For example, if a company spent INR 100 on marketing in a year and acquired 100 customers in the same year, their CAC is  INR 1.  Net Promoter Score (NPS) is one of the easiest ways to measure product/market fit.  Net Promoter Score is the percentage of customers rating their likelihood to recommend a company, a product, or a service to a friend or colleague on a scale of 1-10 with 10 being highly likely and 1 being highly unlikely.

5) Scaling up

This is the stage where a startup needs to focus on diversifying their product offerings.  This is where a startup needs to iterate what is working and put in processes which make these workflows faster.  This is the stage where a company could think of hiring more resources, opening a larger office space and expanding in different areas.  For example when the hyperlocal delivery startup Dunzo began, it was limited to Bengaluru.  However, Dunzo soon expanded to other metropolitan cities to expand their operations and scale up.  

Many startups and entrepreneurs focus on scaling  up rapidly without going through the proper startup lifecycle and often end up in losses.  Building a startup could be fun but it is important to pay attention to each of these steps throughout its journey.  

 

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A Step towards Solving the Oxygen Crisis in Country, Albot Technologies Inaugurates O2 Plant in Pune

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A 500 LPM oxygen plant was inaugurated by Mr. Ajit Pawar, the Deputy Chief Minister of Maharashtra on Friday. The plant has been made operational by Albot Technologies Pvt. Ltd. in collaboration with D.Y. Patil International University (DYPIU) and is installed in the premises of D Y Patil Dnyanshanti School, Akurdi. This marked a monumental milestone towards a future with sufficient oxygen supply. To refresh one’s memory, during the second wave of the pandemic, India had immensely struggled with a rampant oxygen shortage. A sustainable solution to tackle such a critical issue was the need of the hour.

Mr. Ajitdada Pawar cuts the ribbon on Albot Technologies O2 Plant

The list of guests of honour also included the likes of Dr. Sanjay Patil – President, Dr. D.Y. Patil Pratishthan, Mr. Satej Patil – Chairman & Vice President Dr. D.Y. Patil Pratishthan, and Minister of State, Govt of Maharashtra and Dr. Prabhat Ranjan, VC D.Y. Patil International University.

The plant has been engineered to produce over 500 Litres of Oxygen per minute. It employs the well-known Pressure Swing Adsorption (PSA) technique by which the enriched oxygen is generated from the ambient air while filtering out the nitrogen. With the PSA technique, an oxygen purity of 93% can be achieved. Once the oxygen is generated, it can be directly supplied to the hospitals and industrial sectors.

“Our objective is to strengthen the oxygen manufacturing capacity in the nation to forestall the consequences as seen in the second wave of the pandemic. We are viewing this from a multidimensional perspective; enhancing the supply chain while keeping an eye on the evolving demand too,” said Dr. Akash Singh, CEO, Albot Technologies.

Under the Corporate-University collaboration, Albot Technologies has been in a partnership with DYPIU for technology, infrastructure, and healthcare projects.

This collaboration is fueled by the purpose to serve the community in the face of the COVID-19 pandemic and to develop indigenous O2 plant technology for future use under the “Make in India” initiative.

The specialized PSA technique used for this Oxygen plant is a “clean technology“. The raw materials used for this technique are only air and hence there’s no risk of contamination. The oxygen supplied via this plant can be stored for long-term usage and it’s completely safe to use because the chemicals used in the process are non-toxic.

Along with the added advantage of its capacity to produce 500 liters per minute, this O2 plant aims to annihilate India’s oxygen crisis substantially.

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Sirca Celebrates Jashn-e-Rang with Key Partners as they Believe ‘Ghar Hai Aapse’

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Sirca, one of the leading Italian and premium wood coatings brands in India hosted an event for its dealers and distributors family on September 13. The colorful event was carried out by following all COVID protocols, and the company hosted this program to spread positivity among its stakeholders.

Sirca Celebrates Jashn-e-Rang Event

Named Jashn-e-Rang, Sirca organized this event to live up to the companys motto Ghar Hai Aapse With this event, the company made a positive move by showcasing how events can be carried out in a new normal scenario.

Apart from distributors, dealers, and stakeholders, Bollywood beauty Malaika Arora, and singer Khadke Glassy fame Ashok Masti also graced the occasion with their presence. “Even though the global pandemic has taken a toll on the entire business sector in India, Sirca believes in positivity, and we have now celebrated our past achievements by giving rewards and recognition to dealers and distributors. We also inaugurated our new office and manufacturing units, and it is a clear indication that business operations can be done without any toll in this new normal scenario. As the second wave of the pandemic has now waned in India, I strongly hope that all business operations will be bounced back strongly in the nation,” said Apoorv Agarwal, Sirca Joint Managing Director.

“When the pandemic badly affected the world of business, Sirca stood tall as an industry leader. By organizing this event, Sircas exuberance is a huge example and great inspiration for the market, it’s always a pleasure to partner with such a spirited brand,” said Darpan Sharma, CEO & Strategist, DigiStreet.

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JM Financial Products Limited Announces Tranche I Public Issue of upto Rs. 500 Crore of Secured, Rated, Listed, Redeemable NCDs

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JM Financial Products Limited, the flagship NBFC arm of the JM Financial Group, announced Tranche I public issue of Secured NCDs of face value of Rs. 1,000 each.

Mr. Vishal Kampani, Managing Director, JM Financial Products Limited, (also MD, JM Financial Group), said, “JM Financial Products has fortified its position across business verticals with a diversified product mix while maintaining a focus on risk adjusted profitable growth. The Company has maintained strong liquidity buffers. This public issuance will continue to help us diversify our borrowing and investor mix. Our strong balance sheet, well-capitalised and diverse set of businesses and strategic client-focused approach position us to drive sustainable value for our stakeholders.

The Tranche I Issue offers 4 Series – Series I comes with floating interest rate option in the tenor of 39 Months. Series I carries floating interest rate based on 3-month T-Bill Rate published by the Financial Benchmarks India Pvt. Ltd. (“FBIL“) plus 3.15% spread. The Coupon for Series I NCDs will depend on the movement of the T-bill rate.

In addition, Series II, III and IV comes with fixed interest rate option in the tenor of 60 Months (Annual), 60 Months (Monthly) and 100 Months (Annual), respectively. Effective annual yield for Series II, III and III NCDs (fixed interest rate) ranges from 8.19% to 8.30% per annum. The Tranche I Issue offers options for subscription with coupon rates ranging from 7.91% to 8.30% per annum for Series II, III and IV NCDs (fixed interest rate).

The Lead Managers to the Issue are Equirus Capital Private Limited and JM Financial Limited.

The funds raised through this Tranche I Issue will be used for the purpose of onward lending, financing, and for repayment / prepayment of interest and principal of the borrowings of the Company (at least 75%) and for general corporate purposes (up to 25%).

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