Stages of Development for Startups
In honor of the 43 North competition, and start up week, we would like to share our two cents on the subject of development stages for startups.
When building a startup, there are many aspects of business that must be worked out in order to succeed, but you will certainly see the following pieces discussed in any start up pitch.
- Technology (Concept, IP Protection and potentially a prototype)
- The Team (Inventor, Business Development, Plan for Hiring others and when)
- Market Data, Consumer Input
- Funding Sources
Often, entrepreneurs look to venture funding or what we call “Venture Engineering” to get their concept/idea up and running. Venture capitalists, often look for particular qualifications and information from entrepreneurs before investing. To help others further understand this development process, ASG is sharing a chart that shows “Company Startup Stages.”
Depending on the market or industry, the investment required to eventually generate positive revenue and create value will vary widely. Too often we meet entrepreneurs that think if they build it the consumers will come. A new product will evolve, there will be several technological road bumps along the way and outside help will more than likely be needed.
Working with product commercialization as it relates to a hardware and software development process, we often pay particular attention to Technology milestones. However, having a well-defined strategy and meeting Business milestones are just as important.
Working with businesses and startups in WNY, we have been able to segment the market into three cities and identify the startup resources in each city. These resources below will help you get your startup the guidance needed to succeed.
- Buffalo:43North, UB Research and Economic Development, DIG
- Rochester: HTR LaunchPad Customer Discovery
- Syracuse: http://nysstlc.syr.edu/guidebooks/
As you build a strategy for your startup, be sure to identify a plan for each stage your company will likely go through and be realistic about the amount of time the effort will take. Treat your vendors as partners, because you will likely need them throughout the life of your company.