Today, as we celebrate our founding fathers' bold move for independence and the founding of the United States of America, it's a wonderful time to reflect on similar desires and attributes that all entrepreneurs go through when starting their own company. Deciding to branch out on your own is a huge step in every entrepreneur's life. Here are some of the important phases of evolution from the very beginning, to peak performance, and eventual end of life. Every business goes through a life cycle that is similar to a person and each stage brings with it unique characteristics and challenges to solve in order to move to the next stage.
Stage 1: The Birth of Your Company. This initial stage in the entrepreneur's life cycle is filled with emotions running the gamut from elated excitement to fear and uncertainty. One thing is clear: The drive for independence starts with an idea. You see something that others don't see and it compels you to take action and do something about it (for more on this topic, see related article, "Join the Billion Dollar PayPal Mafia Club: Ace These 7 Questions.") While you may not be crystal clear on how you're going to get it done, there is a natural drive to start something that doesn't exist. When you take this step, you are seeking your independence in the business world and creating opportunity for others to join your mission and vision.
Stage 2: Toddlers Seek to Survive and Grow. Assuming that you find a way to successfully launch your company, you're now looking to survive as a business. Most entrepreneurs will either seek to stay independent or immediately look for investors to give them the cash they need to survive. Staying independent will give you more control over your outcomes, but having a cash cushion will help you sleep better at night knowing you have some time to build your company and get it right. Survival is the name of the game at this stage.