{"id":47788,"date":"2019-01-29T12:30:46","date_gmt":"2019-01-29T12:30:46","guid":{"rendered":"https:\/\/smallbiztrends.com\/?p=531593"},"modified":"2019-01-30T11:12:43","modified_gmt":"2019-01-30T11:12:43","slug":"startup-life-cycle-in-one-chart","status":"publish","type":"post","link":"https:\/\/businessnewsbox.com\/?p=47788","title":{"rendered":"Startup Life Cycle in One Chart"},"content":{"rendered":"

\"Startup<\/p>\n

Small business startups go through a typical life cycle of three stages.  I’ve observed this startup lifecycle time and again. In fact, I have gone through it myself.<\/p>\n

If we recognize the three stages, it’s the first step to getting through them successfully.<\/p>\n

Before I go further, let me say I’m not talking about the standard development stages of a high growth startup. Venture capitalists and entrepreneurship professors often talk about this.  But they are thinking about the Facebooks, Googles and Ubers of the world.<\/p>\n

I’m referring to small business startups — the ones you and I and millions of the rest of us start. Our small businesses have a life cycle, too.<\/p>\n

And while the first and last stages are great, the middle stage is not always pretty.<\/p>\n

Defining the Startup Life Cycle<\/h2>\n

It helps to understand a small business life cycle by reflecting on a law of physics: the first law of motion.<\/p>\n

The first law of motion is a principle identified by Sir Issac Newton centuries ago. You’ve probably heard of Newton’s first law, paraphrased as:<\/p>\n

“A body at rest tends to remain at rest. A body in motion tends to remain in motion. “<\/strong><\/em><\/p>\n

Sound familiar?  This is describing inertia and momentum.<\/p>\n

In the simplest terms, when it comes to business:<\/p>\n

\n

Momentum = good<\/strong><\/p>\n

Inertia = bad<\/strong><\/p>\n<\/blockquote>\n

Inertia is a major obstacle to success in a small business startup.  It’s not helpful in any business. But it impacts startups and small businesses to a greater degree.<\/p>\n

Why? It’s because we have fewer resources available to combat it.<\/p>\n

After the initial rush of starting the business, we reach a point where we max out our resources. We’ve dug deep. We’ve squeezed out every last ounce of energy and resources.  And suddenly we have no more to give. We have no more money, no more people, no more time to put into our businesses.  Yes, we’ve used it all up.<\/p>\n

Simply put, we get stuck. After the initial excitement of getting the business off the ground, we can’t seem to make forward progress. We can’t seem to get big things moving again.<\/p>\n

Our businesses become like boulders chained to our ankles.  We push and we pull. That boulder budges a few feet but it doesn’t roll along the way we want.  If you are a hard charger or Type A personality, it gets frustrating.<\/p>\n

Oh, we’re busy — we’re slammed.  We may be profitable and able to make payroll.  That’s not the issue.<\/p>\n

Rather, everything starts to feel hard.  Growth doesn’t come as easily as we want it to.<\/p>\n

We struggle to make forward progress in our business growth, profitability and success.  We feel mired down, like wading through mud.<\/p>\n

That’s inertia we’re battling. In fact, inertia is a natural part of the startup life cycle.<\/p>\n

As I said at the beginning of this article, most of us as entrepreneurs go through these three stages in starting and operating a small business.<\/p>\n

Let’s walk through the three stages, so you know what to expect.  And if you are in one of the stages currently, see if the experience sounds familiar.<\/p>\n

Startup Stage 1:  Launch<\/h2>\n

We start out with grand plans.  We entrepreneurs have big ideas and we’re bursting with energy at first.<\/p>\n

After all, we’ve created something from nothing.  We’ve done more than most people will ever do. We took a leap, started a business and got it off the ground.<\/p>\n

When I first started my business, I had so much energy I had difficulty channeling it.  I loved my business  so much!  I was ready to take on the world.<\/p>\n

And if I was gone from my business, I couldn’t wait to get back.  I probably spent too many hours on it. But it was a labor of love.<\/p>\n

Other entrepreneurs I’ve talked with describe a similar experience.  We’re all filled with excitement when we first start a business.  It’s almost like going through a manic episode (but in a positive way).  We’re focused and we’re on fire.<\/p>\n

We’re all Davids ready to trounce Goliath!<\/p>\n

Startup Stage 2:  Trough of Reality<\/h2>\n

While the launch phase is exciting, at some point we fall into … the Trough of Reality.<\/p>\n

To describe this stage, I have to give a nod to the Gartner Hype Cycle<\/a>.  The Hype Cycle is famous in business circles for describing the growth of new technologies.  After the initial peak of excitement and high expectations, at some point the new technology hits the “trough of disillusionment.”  That’s the point when:<\/p>\n