The Three Phases of Building a Startup Company

Hadi Aboukhater

Phase 1

Phase 1 is the idea phase. It involves thinking about a new concept that involves a new, easier, and innovative way of

doing things.

Phase 1

They describe this phase as staying in the garage until 4am in the morning with

friends. They have a a lot of fun with large amounts of stress. There are typically a few people in stage one. There is little

structure or process, and a lot of caffeine and gut feelings.

Phase 1

There is no need for financing or charts in Phase 1; the people who make it past this phase just find a way to get it done and move on to

Phase 2.

Phase 2

Phase 2 is the building phase. This is the phase where the team builds their

budget, process, and organization. The team might even have to rebuild

itself.

Phase 2 If people from Phase 1 are not interested in structure or organizing a real company, then they have to go. This is

when the real organization needs to begin. This is the phase where the founders are taking the idea and turning it into a real company. Phase 2 is when the

founders have to grow up and finally start their own company.

Phase 3

Phase 3 is the optimization phase. This is the phase when the company is optimizing their budgets, organization, and

process.

Phase 3They are finding the best way to make their

product work at the lowest cost. This is when the company is thinking in terms of “the long term.” The company is adding a finance team and an

HR team as well as integrating sales and marketing. The founders are consistently

thinking about scaling different aspects of the company. Debt needs to be paid back and the

product needs to fit to scale.