The primary objective of a startup is growth and its evolution curve involves five phases
A startup is, above all, a company that plans to grow quickly. The fact that it introduces an innovative idea, based on the use of new technology and investment from external lenders, is not enough. The first objective of any startup must be growth, with innovation as its backdrop. The new idea it brings to the market might be found in the product it creates, in the tech it uses, in its production method, or in the payment or financing method; it is a company which, in one way or another, introduces something new and whose bottom line is “growth”. A startup usually changes tack when it reaches an annual turnover of $50 million, or when it has more than 100 employees, or if it is valued at $500 million.
The evolution curve of a startup presents as a trajectory which begins with an initial business idea and ends at the point at which a profitable, scalable company is created (capable of limitless expansion). The concept of scalability is linked to the fact that a company’s growth does not entail a proportionate increase in risks, costs and resources to be used. A startup’s evolution curve goes through these five phases:
- creation of the business model and feasibility study;
- premise and experimentation to validate the idea;
- product launch;
- growth hacking (find the most effective marketing strategy to increase your number of users or clients as quickly as possible).