Crystallization (7)

Purpose

“In the Crystallization stage (7), your business is a young adult. It has successfully survived the challenging and exciting Acceleration stage--I suppose we all have special memories of our teenage years--and you might see that the growth of sales is tapering off and perhaps becomes linear rather than exponential. Running the business becomes more routine. In this stage, it is easier than before to attract people and resources because of the company’s track record with an established, crystal-clear business model. On the other hand, the original startup culture of the business has probably been mostly lost by this time. Those working on the business may feel that it is becoming just another regular, big organization.

At this seventh level, there is increased competition which means that the company has to spend time improving business processes to further increase productivity and efficiency. When the company needs additional funding, it likely starts a Series C round, usually led by equity firms and investment bankers, with the focus being mainly on improving profits and preparations for further expansion.

This is also the perfect time for the young adult to start generating some offspring, if it hasn’t done so already as an adolescent. The established business model is best positioned to continue with its own lifecycle, while at the same time initiating and funding new ideas, which can then be managed as corporate startups.

The seventh stage is also the typical level at which the founders of a new business push for an IPO or a sale to a larger company. Only in rare cases do the original founders hang on to their business creations. They usually want to move on and, not uncommonly, start making new business babies elsewhere.”