3 stages of tech startups: Idea, Validated and Established

[thea3]

Here's a list of things that happen at various stages of tech startups, based on my own experience and invaluable feedback from my prior framework Reddit post (and @momplus3).

1. IDEA STAGE​

Status: Entrepreneur has an idea that needs to be validated.

Next: Test hypotheses; achieve product-market fit via user conversations and iterating MVP.

• IDEA: Identify problem/passion (hopefully, very personal)
• HYPOTHESES: Business Model Canvas, value proposition
• MARKET: TAM/SAM/SOM, competition, regulations
• CUSTOMERS: User research/interviews, personas, Steve Blank/Lean Startup concepts (temporary org in search of a business model)
• PRODUCT: Low-fidelity MVP (wireframes, clickable prototype, working app, landing page, pivots/proceeds). Test with users & get facts/commitment/advancement. High-fidelity MVP. Test with users & get facts/commitment/advancement. Roadmap (1 month increments, 1+ year out vision).
• COMPANY: Pitch deck, company mission, vision, goals, biz plan/model, product vision
• MONEY: Bootstrapping, fundraising/seed money, financial/monetization/runway plan
• SYSTEMS: Processes & tools for running user research, building MVP
• MEASURE: Single metric focus (e.g. revenue, active users)

2. VALIDATED STAGE​

Status: Product idea has been validated -- there is customer demand & market size.

Next: Scale customer base fast with a delightful experience, achieve profitability/active users…

• COMPANY: Name, mission & vision, values, brand, incorporate, legal, accounting, banking, intellectual property...
• PLANNING: Strategy/tactics, goals & milestones (e.g. launch date), business model, pro forma/financial plan
• MONEY: Fundraising, pitch deck (business plan/model), cap table, unit economics (A/MRR, CAC, LTV), budget, runway
• METRICS: KPIs/dashboards with primary/north star metric
• CUSTOMERS: Personas, messaging, attract-engage-delight, surveys/visits/case studies, referrals
• PEOPLE: Founders, key/early hires, team, mentors/advisors, workplace, culture, contractors, employee handbook, onboarding, OOO coverage, work-life balance, wellbeing/fun
• PRODUCT: Vision, roadmap, pricing, user community, feedback loop
• ENGINEERING: Methodology, tech stack, tools, development, QA, availability & disaster recovery plan (stability, scalability, security), tech debt, prioritization
• DISTRIBUTION: Marketing, sales & support engine, channels
• PARTNERSHIPS: Distribution, content, delivery
• PROTECTIONS: Legal, disaster recovery, insurances, etc.
• SYSTEMS: SOPs/processes, office tools (CRM, collaboration, etc.), operations tools (accounting, banking, payroll, etc.)

3. ESTABLISHED STAGE​

Status: Company has a stable/growing customer base or has hit a wall.

Next: Get acquired, IPO, run a profitable business.

• PLANNING: Strategic & tactical plans for financial, systems, protection. Company & team OKRs.
• MEASURE: Success metrics/KPIs, dashboards.
• MONEY: Fundraising, financial reporting, budget
• PEOPLE: Leadership, employees, contractors, culture, HR, payroll & benefits, employee handbook, wellbeing, retention, terminations, onboarding, compensation, professional development, offsites
• CUSTOMERS: Marketing (messaging, marketing automation, inbound marketing, lead gen), Sales (reps, templates, process, metrics, coaching, ARR, MRR, Churn, CAC, CLV), Support (SLAs, retention, self-help, proactive/reactive)
• PRODUCT: Product planning (vision, strategy, roadmap, backlog, prioritization, MVP mindset, pricing, upsell), 3S, continuous innovation
• PARTNERSHIPS: distribution, content, strategic
• SCALE: Pivots, reorganization
• EXIT: M&A, when to sell, valuation, exit options, IB/brokers, due diligence, closing, life after exit

 

[colleensa]

@thea3 This post is really underrated.

 

[pmurrell]

@thea3 Thanks for sharing! It's exactly what i wss looking for