The IDEA Stage is the process of solidifying a business idea into an executable business plan. Typically this is done by
one or more of the startup founders for no salary, since funding is unavailable.
The focus at this stage should be market
research and gathering data that will allow the startup founders to steer the new business startup into a differentiated
market niche where resistance to market entry will be the lowest and sales can be achieved most easily ("low hanging fruit").
By going after a narrowly targeted customer profile or specific customer list who have a visible pain they can more easily get
companies to take the extra risk of dealing with a startup company. With a low monthly expense ("burn rate") the startup founder should
take time and learn as much as possible before taking on additional costs. Startup funding at this stage usually comes from personal
savings and a concurrent real job.
The frustration here is that more startup expertise is needed than the small team usually has. Access to Startup Professionals on as as-required basis is a solution to this dilemma. Many business model options should be explored with the idea that starting with one business model, and later switching to another model may preserve the founders ownership by reducing total capital needs.
When is this stage done? When you have your complete "go to market strategy" figured out and a skeleton business plan in place. This means you have strategies for marketing, sales, product development, finance and operations. Even still, you should expect to make constant adjustments. Any company startup should be quick to adjust constantly as new information comes in from the market and potential customers.
Products Designed Specifically for Stage 1
EARLY STAGE STARTUP STARTER KIT