With a startup business, every milestone is to be celebrated. But at some point, your startup company moves through the startup growth stages into a mature company. This transition is to be celebrated. After all an established company…
With a startup business, every milestone is to be celebrated. But at some point, your startup company moves through the startup growth stages into a mature company. This transition is to be celebrated. After all, an established company is the end goal for most startups. However, it can be a little hard to tell when you’ve reached full-fledged company status. If you’re uncertain, here are a few tips to help you decide:
Don’t Be Hard on Yourself: A lot of companies that seem mainstream such as Uber and Facebook still occasionally refer to themselves as startups, which has caused plenty of confusion. After all, Uber and Facebook have been around for several years and they certainly aren’t short on market value.
Reflect On Your Startup Growth Strategy: When you started your company, you probably spent a long time researching and planning. You likely also set certain milestones throughout your business plan to help measure your company’s success. If you’re wondering about your company’s stage, check your business plan and see how you stack up to what you thought was a full-fledged company.
The 50-100-500 Rule: The 50-100-500 rule is one of the ways to gauge whether or not your company is still a startup company. The idea is that a company that has a $50 million revenue run rate, 100 or more employees and is worth over $500 million is no longer a startup. When looking at business loans for startup, you probably won’t come across this rule as a limit, because the limit is fairly arbitrary.
Check Your State of Mind: Some experts propose that a startup isn’t even a stage but rather a state of mind. A startup business is known for hard and fast innovation as well as the need to grow. This mentality, in many ways, is beneficial, because it helps companies grow and promotes a specific company culture that many have become accustomed to enjoying. However, this mentality doesn’t necessarily preclude a company from moving forward. In fact, you may want to keep some of the benefits of the startup mentality as you advance.
When You Stop Marketing the Why: When you’re trying to find your market, you are trying to convince others that your product is worth buying. If you are still trying to market the ‘why’ of your product, you’re definitely still a startup business. However, if you’re expanding your customer base, or creating new products, you’ve moved past startup status.
Proven Business Model: When you are looking for startup investment, you need to convince others that your business model will work. At some point, however, if your business is progressing properly, your projections should become reality. When you stop estimating and have consistent, real figures to back up your projections, you are well on your way past startup status.
Whether or not you consider yourself a startup business, Solution Mentors is here to help you upgrade your technological needs as you transition through your company growth strategy.
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