Five Essential Stages of Startup Growth Phase
                     Five Essential Stages of Startup
Growth Phase
Business is more of corn crop farming. A lot of preparations must
be  made  before  planting,  yet  a  lot  more  should  be  done
immediately after planting until harvest is made. When a startup
is  still  in  idea  form,  too  much  is  expected  to  make  the  idea
practical. But a lot more is expected to make the startup grow to
a giant firm that earns a substantial return on capital.
Whereas  a  lot  is  needed  to  grow  any  startup,  a  lot  more  is
expected for startup companies in Houston. That is because of
the competitive nature and the dynamics of conducting business
in Houston. Here are specific essentials for all startups that are
going through the following five growth phases.
1. Existence growth phase
The most fundamental stage in the growth phase of a business is
the  existence  growth  phase.  During  this  stage,  a  lot  more  is
expected to occur in terms of seeking recognition and identity in
the market. That is through a lot of publicity, brand identification
and redefinition as per the customers’ needs.
It is purely pegged on the building the business name and image
more. To successfully go through this stage, the following are the
essentials for any startup.
· Incur more expenses than the return on capital  — expect to
make  losses  at  this  stage  since  expenses  should  supersede
profits.
· Carry  out  extensive  brand  identification  and  differentiation-
every startup at this stage should focus on becoming unique and
not  playing  as  per  the  current  standards.  Uniqueness  can  be
achieved through simple things like packaging.
·  Carry out extensive publicity- the business must get a position
in  the  market  through  a  proper  mix  of  all  necessary
advertisement channels.
2. Survival of the fittest growth phase
A business  reaching  this  stage  has  a  stronger  customer  base
built.  It  is  as  a  result  of  enough  of  the  undertakings  in  the
existence phase. Therefore,  it  can produce, sell,  and probably,
make some profits. But that is because some initial expenditures
on product identification and differentiation are cut.
Bravo for a business that’s done that! But it is not yet enough.
Such a business is now confronted with far much bigger problems
than earlier. The problems of competition and market control.
At this juncture, substitutes and similar goods and services in the
market will seek to outdo your business in terms of market share.
Every  entrepreneur  must  be  careful  because  many  businesses
collapse  or  retard at  this  stage.  Usually,  it  happens when the
business fails to sustain competition and reverts to controlling the
smallest market share.
Therefore,  for  growth  beyond  this  stage,  the  following  three
should be done at this stage:
· Extensive publicity
· Enough borrowing from lenders and investors
· Research and differentiation
3. Success growth phase
Every business that wins the competition is successful. There is
enough  for  jubilation,  especially  for  startup  companies  in
Houston, because it is not easy. Cash flow is okay at this stage.
Minimal  expenditures  and  more  profits  are  realized.  Most
business owners choose to halt everything at this stage and focus
on getting the return on capital.
However, for those with long-term plans, they understand that
the market dynamics do not allow them to stay in the comfort
zone because it won’t last long. Instead, they focus on expanding
the  business.  This  stage  is  characterized  by  mergers  and
partnerships to explore any available opportunity.
The following should be done:
· Exploration of additional market
· Ploughing back of profits to increase the size
· Extensive market and product/service research
4. Take off growth phase.
As  indicated  earlier,  a  successful  business  needs  to  take
advantage of any opportunity for growth. It should control the
largest  market  it  can.  Therefore,  branching becomes  handy at
this stage.
The business focuses on increasing operations from a particular
region to the rest of the market nationwide.
The following should be done in this particular stage:
· Seeking for growth capital
· Branching and mergers
· Product/service improvement and diversification.
5. Maturity growth phase
If a business is big enough to assimilate others, it has branches
and so many partnerships. It is reached maximum growth. That’s
is  the  stage  of  maturity.  Congratulations  to  the  prudent
entrepreneur who makes the business go this far.
All  that  is  left  for  business,  especially  the  Houston  startup
companies in this stage, is to invest in innovation and inventions
as well as community support projects.
The following should be done at this stage.
· Establish research Centre for business
· Start charitable programs
· Keeping the business ethical
Here  capital  used  should  come  from the  profits  gained.  With
these tips, your Houston startup companies should outstand.