Be Prepared for the Startup J-CurveDon't abandon your plan the first time things don't go as expected.

通过Lewis Schiff

Opinions expressed by Entrepreneur contributors are their own.

Hero Images | Getty Images

When you're starting out as a small-business owner, you don't always know what to expect. Especially when it comes to your own growth.

There's a common myth regarding the progress of start-ups, saysHoward Love, author ofThe Start-Up J-Curve: The Six Steps to Entrepreneurial Success.Love speaks and writes from experience: He's also a founder of bothlovetoknow.comandflexjobs.com.

神话是相当简单的,因为所有最好的故事are. It states that if you track your startup's progress on a graph, you'll end up with a diagonal line from the bottom-left corner to the uppermost right corner. If you're lucky, you'll see a nice little hockey-stick shape. The myth doesn't stop there, though: Just build your your business around one really great idea, and you'll enjoy continued, linear growth until you decide to sell.

Unfortunately, that's rarely the case.

"In my experience, that hardly ever happens," Love explains. As founder and cofounder of more than a dozen companies, he's spent a lot of time watching small businesses grow. Love has put his money where his mouth is, too, becoming an angel investor for more than 50 other businesses.

Love's book divides the typical startup's path into six phases, each with its own growth pattern. Here's a quick look.

1. Create.

You've come up with that great idea to disrupt your industry and make you millions of dollars. It's a heady, exciting time -- you're giddy and optimistic, putting together the team and the money. You're starting to build your initial product. But chances are, you've already run into some issues. Maybe it was hard to recruit some of the people you needed. Maybe you hit a snag as you worked to secure permits or the whole thing is costing more money than you'd anticipated.

"It's taking more money, it's taking more time, and so forth," Love says. "So, emotionally and from a value perspective, you're dropping down."

Related:Inventors: Do a Patent Search Sooner Rather Than Later

2. Release.

More bad news: You're not likely to make much headway in this stage. You've finally brought your product to market, but it took longer than you'd budgeted. The practical and psychological hurdles take their toll as you launch your product. And that sound you hear? A resounding thud as it lands.

"Almost always, the first iteration of the product does not work," Love says. "It just doesn't resonate. And that's just devastating and disappointing." Which leads you directly to the next phase.

3. Morph.

It's time to figure out what works and what doesn't. "There's always a glimmer of hope -- something that somebody likes," Love says. "You move the product toward that, and you fade the things that are not working. You iterate so that by the end of it, you end up with a product that people love." Once you find the right mix and begin attracting customers, you'll see the curve start to materialize and move upward.

Related:The Magic Can't Begin Until You Get Started

4. Model.

You've worked out the kinks with the product itself. But how will you make money?

"The goal of this phase is to nail the business model," Love advises. You must ensure eventual cash flow, drive down your costs and maximize revenue. Done correctly, this is the phase that truly propels your progress into that coveted upward trajectory.

5.规模。

"First you nail it, then you scale it," Love says. "The Scale phase is when you really blow your product out. Focus on the three things you need here, which are people, process and money."

This can be a tricky stage, psychologically speaking. You must step outside the small-business mindset if you want to take your company to the next level. Scaling demands major changes, but it also can be the most financially rewarding stage in the process.

Related:4 Ways to Smoothly Transition From the Startup to the Scale-up Phase

6. Harvest.

This phase marks the crossover from startup to established business. The decision-making is far from over, but it's of a distinctly different variety.

"This is the phase where you have what I call 'puffball decisions' involving new acquisitions, stock buybacks, IPO, liquidity, events and all of these other wonderful things," Love says. The value creation that began in the Scale phase happens in a big way during the Harvest stage.

As you can see, a startup's path isn't as straightforward as the J-curve myth would have you believe. But if you can anticipate the typical dips and growth periods, you'll be more prepared to meet the inevitable challenges.

Lewis Schiff

Author, Executive Director The Business Owners Council, co-founder of BEN Global Mentorship

Lewis Schiff is the author ofBusiness Brilliant: Surprising Lessons From the Greatest Self-Made Business Iconsand the co-founder ofBEN Global Mentorship, which enables up-and-coming entrepreneurs around the world access to their favorite “rock star entrepreneurs” through exclusive eight-week mentoring “sprints.” Get Schiff'stop 10 secrets to success for up and comers.

Related Topics

Science & Technology

This $80 Quadcopter Can Help Your Social Media Content Take Off

Businesses could see new engagement on social media with content made by this $80 drone.

Franchise

He Got Bored With Retirement. Now He's Selling $18 Million Annually.

Don Lanier was ready for a change, and that pushed him to succeed. Here's how he did it.

Making a Change

The Art of the Pivot — 6 Steps to Reengineer Yourself for a Career Change

Before switching careers or starting a business, learn why reengineering is your secret weapon for turning dreams into strategies, leveraging your unique skill set, and charting a course to undeniable success. This is the game-changer you've been waiting for.

Business Plans

Every Business Owner Needs an Exit Plan — It's Time You Develop Yours.

A winning exit strategy seamlessly aligns business success with personal fulfillment.

Personal Finance

6 Ways to Make Passive Income Through Rental Properties

Rental properties can help you earn passive income and even begin building generational wealth.

Career

Get AI-Powered Help With Resumes, Cover Letters and More With This $29.97 Tool

Let AI create your resume with this handy tool -- now $29.97 for life.