The Four Startup Stages: From Concept to Creation

By Alishba Agha 
| February 10, 2023

A startup is a young company that intends to deliver unique products or services. These are worthy because these services will be irreplaceable for customers. Startups aim to gather long-term customers. They aim to create and revamp existing products for something missing in them; moreover, new categories of goods and services can also be designed to bring in something innovative. Another name for startups is disruptors because they get something new. Various big startups exist today, or Facebook, Amazon, Netflix, Google, apple, etc. 

How Does a Startup Work? 

The startup is like another company, with employees working together to create something like a product. The aim is to sell the product and make revenue goals, but the distinction comes between a startup and a business coming forward how things go.  

Commonly companies are seen replicating what already exists. For example, A company can franchise an existing restaurant. That means they are working the same way on an existing template. But startups differ in a way that they Intend to create something new. They try to build a new template. For instance, food delivery restaurants today offer multiple benefits but have the same food prepared by the chef as an ordinary restaurant. Here, the new thing is that they offer new dimensions apart from just having food in a restaurant. It gives access to as many people as they go to online technology. 

What Are the Startup Stages? 

Ideally, there are four startup stages. 

  • Idea Stage
  • MVP Stage
  • Seed Stage
  • Early Growth Stage

Idea Stage

The idea stage is an initial phase in the life cycle of a business. In this stage, an entrepreneur has to validate the idea, conduct market research, and determine the feasibility of the concept. It includes finding all the means that could help set up the startup.

MVP Stage

The next stage is Minimum Viable Product (MVP). It is a product version that offers features to determine usability for early customers. It aims at providing feedback for better product development. The MVP stage of the startup should focus on making the product simple and easy to use. User experience matters the most as something new will be offered to the customers, so keeping things simple is necessary. 

Seed Stage 

The Seed Stage is the third stage in the life cycle of business and the first stage of growth, also known as the pre-commercialization stage, it requires a business to test its idea. It is the initial step in development where the industry needs financing, developing prototypes, market protection, evaluating marketing potential investigating aspects of the company. That is how the company gets an idea of they could launch the business. 

Early Growth Stage

The Early Growth Stage refers to building a customer base and relishing a stable cash flow. This stage requires finalizing the product and competing with the existing companies in the industry. The business needs to make strategies to gain a competitive advantage. It involves hiring employers that are good at treating customers well. 

Building a solid customer base requires much effort, as the milestones are stronger. Marketing the products effectively and offering quality service is the key to success. The business shows its potential to consumers in the early growth phase. 

Startup Aims for Speed and Growth 

Startups are growing at a fascinating speed because they differ from other companies regarding speed and growth. Startups intend to grow at a faster pace. The reason is that they use an iteration process that helps improve the product using data. The MVP stage of the startup also helps its success because it is beneficial in revising the product until it’s perfect for getting to the market. 

In addition to that, startups are growing by expanding their customer base. Acquiring large market shares and raising more money is used to upgrade the products and multiply it for many audiences. 

How Are Startups Funded? 

A startup raises money through several rounds of funding. 

  • The first round is bootstrapping which involves funding from the founder’s friends and their families. 
  • The next round of funding is seed funding through Angel investors. These highly net-worth individuals make the business grow through early investment. 
  • Then comes the A, B, C, and D funding rounds that involved venture capital firms or investing a hefty amount. The investment starts from tens to hundreds of millions of dollars. 
  • Then comes the final stage, where their startup becomes a public company. This public company is open for IPO Or SPAC (special purpose acquisition company) or getting listed directly on a Stock Exchange. It helps the founders get more return on investment by selling their stakes. Moreover, a public company provides the opportunity to anyone who can invest. 

Tips for Success 

Many startups fail, and many gain success. 

  • Success comes from multiple factors involved in the business. The foremost thing is the execution of the idea. A team can have a great idea but cannot execute it properly and will face failure. It requires the team to be passionate about its vision. 
  • Anyone intending to create a startup must have the background knowledge and expertise where they want to operate. It means that the founders require domain expertise. 
  • The market also influences the startup’s success as it defines the business’s financial gains. A small market cannot help in achieving finance for long-term survival. Therefore, the size of the startup market helps in scaling the opportunity. 
  • The next step is to invest time. It is rightly said that time is money. It will require the team and the owners to work more than 9 hours and devote themselves solely to the idea. Multiple Research has shown that startup owners work more than 14 hours daily. The struggle is accurate, and the time is precious. 
  • Startups can gain success instantly if they encounter something that hasn’t been tried before. And if it is not tried before, how does it make a difference? These are the questions that will help in attaining success. 


Startups are changing the industry on a large scale. Startup owners are looking for opportunities around them and creating a solution to fulfill the needs of society. They lead to innovation or something that changes the paradigm of thinking in a business. The minimal time startups take is the sole reason behind their success in this fast-paced digital transformation era. Through iteration and MVP, they continuously improve the products and gather a colossal audience.

Building a startup is challenging as the bottlenecks are enormous, but startups are changing the world with the right direction and hard work. The passionate founders and their teams spend a lot of time on their ideas. They are on another journey of cracking something unique which hasn’t been tried before.

Synerge connects freelance experts with startups.

You may also like