1. Formation Stage
Formation stage is where a company (or often called a startup) designs, develops and innovates its discovered ideas into tangible products or services while determining market fit. Often times, a startup of this nature finds it difficult to secure fundings and needs the most help in terms of financial and training facilities. This stage is also sometimes categorized as the first few years of a startup; however, some startups get through this stage faster than others.
2. Validation Stage
Validation stage is where a company begins to mature by testing its product prototypes to the public and collate data in order to improve the products. The products are in the later stages of development and the company is thinking about maximizing efficiency in terms of production or sales. In this stage, a company has already secured early fundings for its formation stage but might be looking for funding in order to expand their products by acquiring more users. It is sometimes defined as 3-5 years of company establishment; however, it might not be necessarily true for all companies.
3. Growth Stage
Growth stage is where a company already have established products and fully determined its market fit. The company has also begun to scale customers and revenues on top of assembling a pool of talented, passionate, and effective team members to help it grows bigger. Market expansion and quality maintenance are the company’s priorities at this stage as the company wants to capitalize on its well-known products and ability to produce constant high quality goods.