A startup is a stage of testing a business idea, and a business is a system for scaling a proven model. Transitioning from a startup to a business requires developing a strategy, setting goals, and establishing processes for sustainable growth.
Startup development
From idea to business
What should an entrepreneur do who has just launched his startup and assembled a team? And how to understand when it is time to "grow up" and expand the business, as well as make sure that the team itself is ready for this? Andrii Myronyuk, founder of MYRONIUK CONSULTING, lecturer at the Lviv Business School of Ukrainian University of Technology (LvBS), tells about this in his author's column for ELBUZ.
At first you are full of energy and enthusiasm, there are many unexpected turns around, constant search for yourself , you make mistakes easily and quickly, but you correct everything just as quickly. Over time, you grow up, slow down, work becomes less driven and more routine, the price of mistakes increases, so there are fewer experiments. But you are happy to move into this new stage, because this is where you find depth and scope.
The difference between a startup and a business
The line between youth and maturity is often as blurred as that between a startup and a business. However, the realization of the need to move further for growth prompts the development of a plan for this transition.
There are many different views on this topic, but five main ones can be distinguished criteria:
1. Goal. Startup is the stage of testing the hypothesis "is it really possible to make money this way?". The goal of business is to scale an already proven business model.
2. Energy. A startup usually lives off the energy of its founders and grows in proportion to their efforts. This may be acceptable for a short phase of hypothesis testing, but not suitable for a long-term, large-scale business.
3. System. Business is a system of scaling money: invested 100 - received 150, then invested this 150 - received 220 and so on. Growth does not depend on the amount of invested energy of the founder.
4. Tempo. A startup is a sprint, where you need to quickly achieve a powerful result thanks to short superpowers. Business is a marathon that must be run for a long time at a leisurely pace without expending all your strength in the first hour.
5. Stability. A startup often depends on the founder, while a systemic business can function independently of one person.
Creating a strategy and goals
Developing a strategy and setting goals is essential for transitioning from a startup to a business. The best format for this is a strategy session. Gather the key team members (9-15 people), divide them into three groups and conduct the following stages:
- Team. Involve everyone who will implement the goals.
- Future. Ask everyone to imagine the company's ideal future 10 years from now.
- Sync. Discuss the vision in groups and try to formulate a shared vision.
- Shared vision. Present and discuss the vision of all groups to arrive at a single option.
- From idea to metrics. Define specific indicators by which you will understand that you have achieved the vision.
- Goal for next year. Set interim goals for 1, 3, and 5 years.
- Action Plan. Define strategic initiatives and assign responsibilities.
- Fixed in the system. Set up regular meetings to discuss the progress of strategic projects.
Glossary
- MYRONIUK CONSULTING is a consulting company founded Andriy Myroniuk
- LvBS (Lviv Business School of UCU) - business school at the Ukrainian Catholic University in Lviv
- ELBUZ - online platform for business content
- Google is an American multinational corporation specializing in Internet services and products
- Zoom - service for conducting video conferences and online meetings
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Answers to questions
How to determine that a startup is ready to grow into a full-fledged business ?
What is the role of the strategic session in the development of the company?
How to correctly formulate the vision of the company?
How to turn the company's vision into concrete goals?
How to ensure the implementation of strategic goals in the daily work of the company?
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Discussion of the topic – Startup development strategy: from a garage project to a successful business
The article talks about the key stages of a startup's development, defining strategic goals, and the moment of transition from the initial stage to business scaling. An expert shares tips on managing a team and preparing for company growth.
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Olena
Interesting article! I recently launched a startup myself and am currently at the hypothesis testing stage. The thought about the energy of the founders is very resonant. Sometimes it seems that I work 24/7 🙈
Maksym
Olena, I understand you. I went through it myself. The main thing is not to burn out. Try to delegate part of the tasks to save energy for strategic decisions. What about the team? Already dialed?
Olena
Maksym, yes, I have a small team of enthusiasts. But it is difficult to find a balance between micromanagement and complete freedom. How did you solve this problem?
Sophie
Join the discussion! 🙋♀️ My experience shows that the key to success is clearly defined KPIs for each team member. This helps avoid micromanagement and gives people a sense of responsibility. What do you say?
Viktor
Oh, these startups and KPIs of yours... Before, people just worked and everything was fine. Why these constant changes and innovations? It's just a headache.
Maksym
Sophie, agree about the KPI. Olena, try to implement it. I also recommend regular one-on-one meetings with the team. This helps keep your finger on the pulse without being overly controlling. Viktor, the world is changing, you have to adapt 😉
Olena
Thanks for the tips! 🙏 I will try to implement KPI and one-on-one. What about transitioning from a startup to a business? When did you know it was time to scale?
Sophie
In our case, this happened when we achieved a steady profit for 6 months and realized that the demand exceeded our capacity. It was a sign that it was time to expand and create a more structured system. But each case is unique, trust your intuition and data! 📊🚀