How successful startups make big money

The 4 stages of entrepreneurs' journey to wealth


As many entrepreneurs will know, there is no straight road to success - instead the road is often a winding one that entrepreneurs have to navigate with investors, customers and co-founders. 

Anna Vital of Funders and Founders in an infographic highlights the milestones that many startups will experience on their journey to success. 

Infographic source: Funders and Founders

Here are the 4 major stages to making money as a startup. 

  • The Product - Creating a product is the first step of every business. For the entrepreneur, this includes coming up with an idea for a product, creating a prototype, introducing it to the market and working on improvements. 
  • The Co-founder - "Find a co-founder who can build it with you," says Vital. In return, the co-founder will get a share of the equity. 
  • The Investor - The role of the investor is to give entrepreneurs the funds needed to create the product. This is either in the form of a loan that has to be paid back with interest, or equity in the business. Investor funds also come into play when the entrepreneur is looking to scale the business, typically from a VC. 
  • The Payoff - "List your company on stock exchange (this is after you’ve either raised a lot of money or have a lot of revenue, or better yet profit)," says Vital. Once the company is listed, sell a lot of shares, she adds. After a cooling off period of several months, you will have your money, she concludes. 
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