At this stage, startups are well on their way to building a successful business, are confident about customer acquisition and retention, and have a good handle on the right distribution channel. With clear evidence of business progress and the desired team in place, the growth stage companies (typically 2 to 4 years old) seek higher funding from angel groups and Venture Capital investors (VCs) who target high-growth businesses and therefore are attracted to this phase of company development.

This is a ‘business momentum’ phase that seeks to scale operations by making bigger, bolder bets in areas where the company anticipates the most demand, growth and profitability. Key to building a successful company is to get better as you get bigger. This is a premise that most growing companies follow and their focus areas are:

  • Scaling and tracking growth requirements
  • Technology as a tool to scale
  • Narrowing down markets and target customer segments (only if required)
  • Analyzing market response and growing requirements
  • Market share target
  • A strong revenue generation plan with targets
  • Expansion of channel
  • From ownership to partnership
  • Complete team in place
  • Professionalizing systems and processes - metrics to assess long-term health of the business
  • Series B and C/ VC funding
  • Beginning of brand building exercise – enduring and loyal brand identity
  • Targeted Marketing – budgets and tactics depending upon a B2B or B2C product line

“Sustaining a successful business is a hell of a lot of work, and staying hungry is half the battle” 

Wendy Tan White, co-founder and CEO of MoonFruit

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