gestation stage vs start up stage in entrepreneurship

Why the gestation stage is more important than the start up stage in entrepreneurship

What is one reason why the gestation stage is more important than the start up stage in entrepreneurship?

We spoke to experts with answers and got their advice compiled here to help you out! Read on to know 11 factors that the experts need you to know when it comes to the gestation period: 

  1. Proves Operational Efficiency
  2. Gestation Tests the Quality of the Business
  3. Gestation Means That the Groundwork is Laid
  4. It’s Time to Build Traction
  5. Thinking Future State During Gestation
  6. The Business Needs to Get Creative
  7. Once You Launch, You Can’t Go Back
  8. The Business Shifts Focus to Efficiency
  9. Idea Refinement Happens in the Gestation Stage
  10. Social Proof of Concept is a Critical Gestation Stage
  11. Have Plans and Systems in Place for Preparation

Proves Operational Efficiency

Large investors often consider high start-up failure rates collateral damage, hoping that a single unicorn will make up for it. A successful post-funding phase with positive cash flow can ensure the business can sustain growth. It is also a sign that the potential future competitive advantage is not the only driving force, and the firm can manage its operations in pairs with the established industry competitors.

Michael Sena, SENACEA

Gestation Tests the Quality of the Business

The gestation stage is when the entrepreneur determines whether the product has market fit and whether that fit is enough to make the business viable. Ultimately the aim of any sustainable business is to produce a good return for its owners, and this is the stage where that goal is tested and evaluated.

Matthew Ramirez, Rephrasely

Gestation Means the Groundwork is Laid

A lot of people seem to think that the start-up stage is the most important stage for a company, but in reality, the gestation stage is actually more important. This is because it’s during this stage that the company is laying down the foundation for future success. The start-up stage may be when the company gets off the ground and starts making money, but it’s during the gestation stage that all of the groundwork is being laid.

Claire Westbrook, LSAT Prep Hero

It’s Time to Build Traction

The gestation phase is a once-in-a-lifetime period that a start-up has to build a lot of traction. Launching a non-incubated start-up is a big mistake because you’re starting from square one, and all eyes will be on you as you work out the kinks. Having a well-established game plan not only alleviates a lot of stress, it shows start-up maturity.

Rachel Blank, Allara

Thinking Future State During Gestation

The gestation state is the early stage of your start-up, the stage that builds momentum towards the predetermined future state of your business. For many, determining your future state will depend on the impact of business incubation during the gestation stage. Whether you’re using an advanced system such as a network broker or you’re measuring your processes and analyzing your metrics on your own, the gestation stage is important for deciding how you’re going to run your business before going ahead with implementing those processes.

Matt Woods, SOLD.com

The Business Needs to Get Creative

Although building a solid foundation for your company during the start-up period is important, it’s equally crucial to get creative and explore opportunities during the gestation phase of entrepreneurship. Successful businesses in this stage are often driven by innovation and further refinement of their products or services. As companies test their limits, they’re more readily able to maximize their strengths while also working on areas that need improvement. This takes strategic thinking, coordination, and organization — all skills that can be cultivated in either entrepreneurial stage but may not always find expression until the company enters its growth stage.

Chris Thompson, Backdoor Survival

Once You Launch, You Can’t Go Back

The gestation (or planning) stage is something a start-up business only gets one shot at. Once your business idea is launched, there’s no turning back. Prior to officially launching our early stage start-up, we invested heavily in a robust SEO strategy. By optimizing our website for search, people were able to easily find our groundbreaking supplement when searching for key terms like “cellular health.” Whether you’re selling health supplements or going into the construction industry, visibility is everything. If people can’t find you, they can’t spend money with you.

Stephanie Venn-Watson, fatty15

The Business Shifts Focus to Efficiency

In many cases, a start-up is bootstrapped or funded with very little capital from its initial investment round. This forces the company to be lean and efficient in everything from product development to marketing campaigns. In the gestation stage, a growing business often finds itself flush with more cash than it knows it can plan for. It’s important for a business in this phase to allocate funds effectively and establish processes that prevent costs from creeping up and becoming uncontrollable — or even worse, unsustainable.

Marc De Diego Ferrer, MCA Assessors

Idea Refinement Happens in the Gestation Stage

The gestation stage of the entrepreneurship cycle is essential in helping refine your ideas and match them to the problems you would love to solve with your business. Your business will go on to have forward-thinking and solution-oriented vision and mission statements because of the time you invest in learning, trialing, transfer of resources, and troubleshooting your idea during the gestation period of your entrepreneurial journey. This stage is also crucial for helping you learn the soft skills necessary to steer your concept through the tough early stage start-up. Compared to the gestation stage, the start-up stage is less important because it is a period of setting up structures and implementing a flow of processes as envisioned in the previous stage.

Ryan Yount, Luckluckgo

Social Proof of Concept is a Critical Gestation Stage

The start-up stage for your business may be well planned, the financing can be in place and the management team can be ready, yet if you do not have a social proof of concept, it is doomed to failure, and is why the gestation stage is more important. What you or a small niche group thinks is a great idea, will not provide you the critical data on whether your business is ready for the advanced start-up stage.

The most critical part of a start-up is compiling and evaluating data about your target audience, getting their input in everything from business concept, to enthusiasm, to likelihood of purchase. These potential customers provide the social proof of concept required for a successful business. Those who do not conduct this crucial part of the gestation process, could learn their positive feelings are not shared, thus dooming them to failure before they even begin.

Zach Letter, Wonder Works

Have Plans and Systems in Place for Preparation

You can’t just start a business without developing plans and systems. For example, you need to think about the mission of your business and your brand personality. You need to have a vision for your digital marketing strategy. You need to consider how you will interact with your customers. You need to make sure that you have a well thought out system for your supply chain. Of course, you cannot plan everything out and surely your plans will change over time, but you at least need to have some plans in place before officially launching your business so that you will be prepared with how to handle all of your business efforts.

Drew Sherman, Carvaygo

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