This is the exciting stage in the startup journey. Startups now have a good idea about the 4 P’s (product, price, place and promotion). Feedback/User experience received from early adopters of the product/service is taken as basis for refinements. Founders are looking for paying customers to drive validation of their hypothesis as well as estimating revenue from operations. Setting up of various functions like sales, operations, technology and customer service are critical at this stage with senior management personnel (including co-founders) overseeing this. Startups look to consolidate their product/service while on the look-out for serious funding to support their growth aspirations. Key activities that mark this startup phase are:

  • Funnel optimization - experimenting with elements of user experience for activation, conversion and retention
  • Market Segmentation
  • Expansion of customer base – acquisition and retention
  • Channel Fit - most efficient avenues for reaching target customers
  • Revenue generation
  • Key senior management personnel on-boarded
  • Sales and marketing strategy – repeat/new customers
  • Mentors to fine-tune strategy and positioning
  • Angel/Series A funding

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"User experience is everything. It always has been, but it's still undervalued and under-invested. If you don't know user-centered design, study it. Hire people who know it. Obsess over it. Live and breathe it. Get your whole company on board"

Evan Williams, co-founder of Twitter

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