Stages of a Start Up - What the Entrepreneur Can Expect - Part 1

When you were starting out in business, no one told you it would take two to four years to become an "overnight success", did they? That's because no one really knows how much time it takes to become financially successful in a new business venture. It tends to be different for everyone, based on your skills as an entrepreneur, your start up budget, and your willingness to take risks.

Throughout the years I have noticed a distinct "start up path" with my coaching clients. It can be a rough pathway, at times a jungle, but getting there is half the fun. In this article, we are going to investigate the stages of a start up entrepreneur. We'll take a look at what a hypothetical entrepreneur can expect and what to watch out for. We'll examine some "what ifs" and lay out an entrepreneurial path that you may or may not chose to follow.

Year One - Getting Your Name Out There

At this stage you are an infant business owner. You are learning who you are; what you are good at. You are the person with the "big idea" and you begin to recognize that you might be able to make money at it.

You may decide to keep your "day job" for the first year to provide income while you are building the business. Learning to be patient is essential during this phase because you are likely doing a lot and not getting much in return in the way of income. But that's ok. You may need to save 6 to 12 months of living expenses to augment your income when you leave the safety net of your day job.

So you begin to experiment with company names. You investigate legal entities for your business, depending on whether you'll have partners or go it alone. You print your first business card. It's not the best example of a cohesive brand, but it will do for now. You use your cell phone as your business phone number. Your home computer becomes your business computer.

You begin to develop your 30 second commercial. It's a bit shaky, but it gets the point across. You start the networking circuit to build awareness. You want to hit the ground running and you're a little disappointed that the revenue doesn't roll in as fast as you thought.

You land a few clients. You are elated, but it wears off quickly. You keep going. You are undercharging and working long hours, but you may not recognize it at this point. How can someone who works so much make so little? Oh well, you keep going.

Year Two - Growing the Garden

At this stage you have grown up a little to become a teenager business owner. You are getting better at what you do and the word is getting out. You are still working like mad, but it's all starting to make sense.

You recognize that you'll need a better Brand if you're going to attract better clients, so if you are smart you hire a professional designer and do a brand overhaul. You re-work your 30 second commercial and it starts to sound more like you. You come up with a great benefit driven tagline and excellent copy to market yourself. You redesign your website and re-create your marketing materials based on your newfound knowledge and you get out there again to sell yourself.

When it's time to get a paycheck, you'll need to determine a reasonable salary for someone in a similar position. Don't get greedy though. Keep your lifestyle modest with an eye to the future. You are building a business empire but you'll need to reinvest your profits for quite some time.

You begin to realize that growing your business is a bit like being a gardener. You are building relationships that plant seeds which grow into vines. In time, flowers on the vines will bloom. Some vines may take longer to bloom than others and may need additional fertilizer and loving care. Eventually, though, many vines bloom with elaborate intricate flowers yielding strong business relationships that benefit your company for many years.

At the end of this stage you raise your fees which has a big impact on your profitability. You realize it's better to charge at the higher end of the market. You may lose a client or two, but you'll have more cash in the bank and more free time to enjoy your personal life.

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Suzanne Muusers is a Business Coach and Business Expert based in Scottsdale, Arizona and is the creator of the 2 Page Mini Business Plan for Entrepreneurs. She is a credentialed member of the International Coach Federation and works exclusively with entrepreneurs and financial advisors who want to leave behind their lives as business workers to become business owners earning six figures and above annually. For entrepreneurial tips and how to's see her blog, http://www.theProsperousEntrepreneur.com

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