The Full Journey of a Corporate Startup: The Six Phases of Maturity

As a corporate entrepreneur, I have had the opportunity to witness the journey of numerous startups within large organizations. Recognizing the crucial need for a comprehensive roadmap to guide these ventures, I have developed a model consisting of six distinct stages of maturity.

In this article, we will delve into these phases, from initial discovery to market domination, providing invaluable insights and strategies for success. By understanding and embracing these stages, aspiring corporate entrepreneurs can navigate their startup’s path with confidence, setting the stage for sustainable growth and impactful innovation.


🔎 Explore

1️⃣ Discovering

👤 Pre-market
🎯 Problem/solution fit

Measure customer understanding and context to validate the solution

In the fast-paced world of corporate startups, the initial phase plays a pivotal role in shaping the trajectory of a venture. Phase 1, known as the “Discovering” stage, marks the beginning of the journey, where entrepreneurs embark on a quest to validate their ideas and value propositions. Let’s explore the significance of Phase 1 and the key strategies to navigate it successfully.

1. Embracing Customer Understanding:

During Phase 1, the focus should be on gaining a deep understanding of the customers and the context in which the venture operates. By validating that customers truly experience the problem and are seeking a solution, entrepreneurs can lay the foundation for future success. Metrics such as the number of potential customers experiencing the problem and their willingness to try the solution become crucial indicators of progress.

2. Leveraging Prototyping and Mockups:

Validating the problem/solution fit does not require elaborate technical skills in Phase 1. Entrepreneurs can use various tools like videos, mockups, and pretotypes to convey their ideas and gather feedback. Building a pretotype, a fake version of the product or service, allows entrepreneurs to measure customer behavior through download buttons or sign-up forms. These metrics serve as valuable insights for refining the value proposition and iterating on the solution.

3. Agile Experimentation and Iteration:

Phase 1 is a stage of constant learning and adjustment. Entrepreneurs must remain open to feedback and be willing to pivot if necessary. As new evidence emerges, the underlying hypotheses need to be reconsidered. By embracing an agile approach and adapting the business model based on customer insights, entrepreneurs can increase the chances of success.

4. Measuring Market Potential:

Assessing the market potential is critical in Phase 1. Entrepreneurs should focus on identifying the number of potential customers who experience the problem and are willing to try the solution. These metrics provide early indications of market demand and help shape the future growth strategy. It is essential to gauge the market’s size, dynamics, and growth potential to determine the feasibility and scalability of the venture.

Market metrics: Amount of potential customers that experience the problem and amount of potential customers that experience the problem that are willing to try the solution

Product metrics: Building a pretotype and measuring customer behaviour through download buttons or sign-ups forms


Phase 1, the “Discovering” stage, sets the foundation for the success of corporate startups. By emphasizing customer understanding, leveraging prototyping and mockups, embracing agile experimentation, and measuring market potential, entrepreneurs can navigate this phase effectively. It is crucial to gather evidence, validate assumptions, and refine the value proposition to proceed to the next stages with confidence. Success in Phase 1 paves the way for further exploration, validation, and ultimately, the creation of a repeatable and scalable business model.

2️⃣ Validating

👤 Innovators
🎯 Product/pioneer fit

Indicate customers’ willingness to pay and loyalty

As corporate startups progress on their innovation journey, Phase 2, known as the “Validating” stage, becomes the focal point. This critical phase revolves around substantiating the market viability of the venture, solidifying customer interest, and laying the groundwork for future growth. Let’s explore the significance of Phase 2 and the strategies to navigate it successfully.

1. Showcasing Customer Willingness to Pay:

In Phase 2, entrepreneurs shift their focus towards demonstrating customers’ willingness to pay for their product or service. The goal is to secure more solid evidence of interest and demand in the market. Entrepreneurs concentrate on acquiring the first sales or obtaining letters of intent from potential customers, indicating their commitment to the solution. These metrics, along with customer loyalty measurements, serve as indicators of product/pioneer-fit.

2. Building a Minimum Viable Product (MVP):

As Phase 2 unfolds, entrepreneurs invest efforts in developing a Minimum Viable Product (MVP). This functional prototype allows for comprehensive testing and validation of the value proposition. By measuring usage and engagement metrics, entrepreneurs gain insights into customer behavior and satisfaction. Iterating on the MVP based on user feedback is crucial to refine the product, enhance its market fit, and generate innovators traction.

3. Tracking Customer Acquisition and Retention:

To validate the business model further, entrepreneurs need to focus on customer acquisition and retention. Metrics such as the number of potential customers who pre-order the solution and the number of customers using the product extensively after ordering provide valuable insights into market demand and customer loyalty. Successful customer acquisition and retention strategies indicate the potential for scalability and profitability.

4. Assessing Scalability and Profitability:

Phase 2 is also a time to evaluate the scalability and profitability of the venture. Entrepreneurs aim to justify larger investments in scaling up customer acquisition efforts and testing profitability on a larger scale. They analyze the cost structure, customer acquisition costs, and the ability to deliver customer value efficiently. Technical prototypes and operational feasibility assessments are essential to validate the venture’s growth potential.

Market metrics: Amount of potential customers that (pre)-order your solution and amount of customers that use your product extensively after ordering

Product metrics: Building a Minimum Viable Product (MVP) and measuring its usage


Phase 2, the “Validating” stage, holds immense importance in the journey of corporate startups. By showcasing customer willingness to pay, building a Minimum Viable Product and tracking customer acquisition and retention, entrepreneurs can navigate this phase successfully. Gathering solid evidence, refining the value proposition, and demonstrating early market traction are crucial for propelling the venture towards the next stages. Success in Phase 2 sets the stage for accelerating growth, expanding market reach, and establishing a strong foundation for long-term success.

3️⃣ Accelerating

👤 Early adopters
🎯 Product/market fit

Proven the business model on a small scale

Phase 3 of a corporate startup’s journey, known as “Accelerating,” marks a pivotal stage where entrepreneurs focus on scaling their venture and validating the business model on a larger scale. It involves fine-tuning the value proposition, expanding the customer base, and demonstrating the ability to create and deliver customer value efficiently. Let’s explore the key strategies and considerations for successfully navigating Phase 3.

1. Scaling Up Customer Acquisition and Market Reach:

In Phase 3, entrepreneurs shift their attention towards expanding their customer base and reaching a wider market. This involves implementing scalable marketing and sales strategies to attract new customers who fit the product or service. By leveraging marketing channels, partnerships, and targeted campaigns, entrepreneurs aim to increase the number of customers acquired and drive awareness of the venture.

2. Validating Product/Market Fit with a Minimum Marketable Product (MMP):

At this stage, entrepreneurs seek to solidify the product/market fit by focusing on an extensive working prototype or the first product/service offering. They aim to demonstrate that the value proposition resonates with the target market on a larger scale. Feedback from early adopters and comprehensive customer behavior analysis provide insights into how well the product satisfies customer needs and generates value.

3. Evaluating Cost Structure and Resource Management:

To ensure the venture’s long-term viability, entrepreneurs must assess the cost structure and resource management. This involves understanding the cost of acquiring and serving customers, analyzing profitability, and fine-tuning the operational efficiency of the business model. Efficient resource allocation, optimized supply chains, and effective utilization of human capital are key factors in sustaining growth and profitability.

4. Testing Profitability and Scaling Initiatives:

Phase 3 serves as a critical juncture for testing the venture’s profitability and scaling initiatives. Entrepreneurs seek evidence that supports the expected profitability of the business model when applied on a larger scale. Key metrics such as revenue growth, customer lifetime value, and customer acquisition cost ratios provide insights into the financial viability of the venture. The focus is on justifying larger investments in customer acquisition and expanding operations.

5. Proactive Exploration of New Growth Opportunities:

While scaling up operations, entrepreneurs should maintain an outward-looking approach. They need to actively explore new growth opportunities, adjacent markets, and potential disruptions in the industry. This proactive approach allows for early identification of emerging trends, technological advancements, and changing customer preferences. By staying ahead of the curve, entrepreneurs can seize new opportunities and adapt their strategies accordingly.

Market metrics: Amount of customers that fit your product and amount of customers acquired through scalable marketing and sales

Product metrics: Building a Minimum Marketable Product (MMP) and measuring customer behavior through pirate metrics (awareness, acquisition, activation, retention, revenue, referral) and other metrics that matter.


Phase 3, the “Accelerating” stage, is a critical phase where entrepreneurs focus on scaling up their venture and validating the business model on a larger scale. By scaling customer acquisition efforts, validating product/market fit with a minimal marketable product, evaluating cost structures, testing profitability, and exploring new growth opportunities, entrepreneurs can navigate this phase successfully. Building on the foundations laid in earlier stages, Phase 3 sets the stage for sustained growth, market expansion, and the establishment of a thriving corporate startup.

💼 Exploit

4️⃣ Hyperscaling

👤 Early Majority
🎯 Businessmodel fit

Getting the venture off the ground at a rapid pace

Phase 4 of a corporate startup’s journey, known as “Hyperscaling,” represents a significant turning point where entrepreneurs shift their focus to achieving hypergrowth and building a proven and promising business model. It is a phase characterized by rapid expansion, scaling customer acquisition, and optimizing the delivery of products or services. Let’s explore the key strategies and considerations for thriving in Phase 4.

1. Scaling Customer Acquisition, Retention, and Delivery:

In Phase 4, entrepreneurs aim to propel their venture into immense growth by scaling up customer acquisition, retention, and delivery efforts. This involves deploying strategies to attract a large customer base, ensuring customer satisfaction and loyalty, and optimizing the delivery of products or services. By expanding marketing campaigns, leveraging data-driven insights, and streamlining operations, entrepreneurs create the foundation for hypergrowth.

2. Utilizing External Capital for Market Adoption:

To fuel hypergrowth, entrepreneurs often rely on external capital to accelerate market adoption. This includes securing investments from their board, venture capitalists, strategic partners, or other funding sources to support scaling initiatives, expand infrastructure, and hire additional resources. Effective capital allocation and financial management become crucial in ensuring sustainable growth and maximizing the return on investment.

3. Focusing on Metrics and Predictable Profitability:

During Phase 4, entrepreneurs shift their attention to key metrics that indicate sustainable growth and predictable profitability. They closely monitor customer lifetime value (CLV) relative to customer acquisition cost (CAC) while serving the early majority. By optimizing these ratios, entrepreneurs ensure that the venture’s financial performance remains positive and predictable. This includes implementing strategies to increase revenue, enhance customer retention, and drive referrals.

4. Building a Mature Product and Customer-Centric Approach:

With hypergrowth comes the need for a mature product that meets the evolving needs and demands of a growing customer base. Entrepreneurs focus on fine-tuning their offerings, adding new features, and continuously improving the user experience. They also prioritize a customer-centric approach, gathering feedback, and utilizing data to iterate and enhance the product or service based on customer preferences and market trends.

5. Expanding Infrastructure and Human Resources:

Hypergrowth demands a robust infrastructure and sufficient human resources to support the rapid expansion. Entrepreneurs invest in scaling their operational capabilities, including technology infrastructure, logistics, supply chain management, and customer support systems. Additionally, they focus on hiring and retaining top talent, fostering a culture of excellence and innovation within the organization.

6. Continuously Innovating and Staying Agile:

In Phase 4, entrepreneurs must maintain their innovative mindset and agility to adapt to evolving market dynamics and customer needs. This involves monitoring industry trends, exploring new growth opportunities, and embracing incremental innovations to stay ahead of the competition. By fostering a culture of continuous learning, experimentation, and adaptability, entrepreneurs can navigate the challenges of hypergrowth effectively.

Market metrics: A positive and predictable ratio of customer lifetime value related to customer acquisition cost while serving the early majority and slowly but surely increasing profits

Product metrics: Building a mature product while measuring customer behavior through pirate metrics (awareness, acquisition, activation, retention, revenue, referral) and other metrics that matter.


Phase 4, the “Hyperscaling” stage, presents corporate startups with the opportunity to achieve hypergrowth and establish a strong market presence. By scaling customer acquisition, optimizing operations, utilizing external capital effectively, focusing on key metrics, building a mature product, expanding infrastructure, and fostering innovation and agility, entrepreneurs can thrive in Phase 4. This phase sets the stage for substantial market adoption, increased profitability, and the realization of the venture’s full potential.

5️⃣ Boosting

👤 Late majority

Strengthening the performance of an established venture

Phase 5 of a corporate startup’s journey, known as “Boosting,” marks a crucial stage where entrepreneurs focus on strengthening the performance of their established venture. It is a phase characterized by sustaining innovation, refining the business model, and exploring new growth opportunities. Let’s explore the key strategies and considerations for excelling in Phase 5 and maximizing the venture’s potential.

1. Sustaining Innovation and Fine-Tuning the Business Model:

In Phase 5, entrepreneurs prioritize sustaining innovation to enhance the existing business model. They strive to refine their value proposition, optimize operational processes, and introduce incremental improvements to the product or service. By listening to customer feedback, analyzing market trends, and leveraging data-driven insights, entrepreneurs can fine-tune their offerings to meet evolving customer needs and maintain a competitive edge.

2. Expanding into New Product Innovations and Markets:

To sustain success and continue growing, entrepreneurs in Phase 5 explore new product innovations and markets. They seek opportunities to leverage their existing customer base, brand recognition, and operational capabilities to introduce complementary products or expand into adjacent market segments. This strategic expansion allows entrepreneurs to diversify their revenue streams, capture additional market share, and mitigate risks associated with relying solely on a single product or market.

3. Strengthening Customer Relationships and Driving Repeat Business:

Phase 5 emphasizes the importance of strengthening customer relationships and driving repeat business. Entrepreneurs focus on enhancing customer satisfaction, loyalty, and advocacy by delivering exceptional experiences and providing personalized support. They leverage customer relationship management (CRM) tools, implement loyalty programs, and nurture ongoing communication channels to stay connected with their customers and encourage repeat purchases.

4. Continuously Monitoring Key Metrics and Profitability:

Entrepreneurs in Phase 5 maintain a vigilant focus on key metrics that indicate sustained success and profitability. They closely monitor customer lifetime value (CLV), customer acquisition cost (CAC), and other relevant financial indicators. By optimizing these metrics, entrepreneurs ensure that their business model remains financially viable, scalable, and capable of generating sustainable profits. Additionally, they analyze performance metrics, such as revenue growth, customer retention rates, and market share, to assess the effectiveness of their strategies.

5. Fine-Tuning a Mature Product and Embracing New Features:

In Phase 5, entrepreneurs prioritize fine-tuning their mature product while embracing new features and functionalities. They actively gather customer feedback, conduct usability testing, and iterate on their offerings to address emerging needs and stay ahead of competitors. By continuously enhancing the user experience, introducing innovative features, and staying abreast of technological advancements, entrepreneurs can maintain customer satisfaction and drive long-term growth.

6. Cultivating Agility and Flexibility:

Phase 5 demands entrepreneurial agility and flexibility to adapt to changing market dynamics and seize emerging opportunities. Entrepreneurs stay attuned to industry trends, technological advancements, and shifts in customer preferences. They foster a culture of innovation, encourage cross-functional collaboration, and empower their teams to embrace change. By remaining agile and responsive, entrepreneurs can proactively navigate disruptions, identify new growth avenues, and maintain their competitive position.

Market metrics: A positive and predictable ratio of customer lifetime value related to customer acquisition cost while serving the early majority and slowly but surely increasing profits

Product metrics: Fine-tuning a mature product and adding new features while measuring customer behavior through pirate metrics (awareness, acquisition, activation, retention, revenue, referral) and other metrics that matter.


Phase 5, the “Boosting” stage, represents a critical milestone in the corporate startup journey. By prioritizing sustaining innovation, exploring new product innovations and markets, strengthening customer relationships, monitoring key metrics, fine-tuning the mature product, and embracing agility, entrepreneurs can excel in Phase 5 and sustain their venture’s success. This phase sets the stage for continuous growth, market leadership, and the realization of long-term profitability and impact.

6️⃣ Protecting

👤 Laggards

Make the venture more efficient and protect it from disruption

Phase 6 of the corporate startup journey, known as “Protecting,” represents a stage where entrepreneurs focus on maintaining the strength of their established venture and safeguarding it against potential disruptions. It is a phase characterized by efficiency innovation, strategic positioning, and a proactive approach to mitigating risks. Let’s explore key strategies and considerations for thriving in Phase 6 and ensuring the long-term success and profitability of your venture.

1. Maintaining a Strong Market Position:

In Phase 6, entrepreneurs prioritize maintaining a strong market position by continually monitoring competitive landscapes and staying ahead of emerging threats. They conduct thorough market analysis, identify potential disruptors, and proactively respond to industry shifts. By leveraging their deep understanding of the market dynamics, entrepreneurs can identify strategic opportunities to differentiate their venture, protect their market share, and outmaneuver competitors.

2. Fostering Efficiency and Process Optimization:

Efficiency innovation takes center stage in Phase 6. Entrepreneurs focus on streamlining operations, optimizing supply chains, and implementing lean methodologies to enhance productivity and reduce costs. By identifying inefficiencies and eliminating wasteful practices, entrepreneurs can improve overall business performance, increase profitability, and ensure the venture’s long-term sustainability.

3. Embracing Strategic Partnerships and Collaborations:

To protect the venture from disruption, entrepreneurs in Phase 6 actively seek strategic partnerships and collaborations. They identify synergistic organizations, complementary technologies, or market leaders that can strengthen their position and provide access to new markets or distribution channels. Strategic partnerships enable entrepreneurs to leverage shared resources, tap into new customer segments, and mitigate risks associated with external disruptions.

4. Anticipating and Responding to Market Trends:

Entrepreneurs in Phase 6 maintain a forward-thinking mindset, actively monitoring market trends and customer demands. By closely tracking technological advancements, regulatory changes, and evolving consumer preferences, entrepreneurs can proactively adapt their business models and offerings. This agility allows them to stay ahead of the curve, identify emerging opportunities, and adjust their strategies to meet changing market dynamics.

5. Investing in Talent and Continuous Learning:

In Phase 6, entrepreneurs recognize the importance of investing in talent acquisition and development. They build high-performing teams, nurture a culture of innovation, and encourage continuous learning and professional growth. By attracting top talent, fostering a dynamic work environment, and empowering employees, entrepreneurs create a resilient and adaptable workforce capable of driving the venture’s long-term success.

6. Diversifying Revenue Streams and Expanding into Adjacent Markets:

Entrepreneurs in Phase 6 explore opportunities for revenue diversification and expansion into adjacent markets. By leveraging their core competencies, customer base, and brand equity, they identify new avenues for growth and resilience. This strategic expansion reduces reliance on a single market or product, mitigates the impact of disruptions, and enables the venture to capture additional value across different market segments.

Market metrics: A positive and predictable ratio of customer lifetime value related to customer acquisition cost while serving the laggards and maximising profits

Product metrics: Reinventing a mature product while measuring customer behavior through pirate metrics (awareness, acquisition, activation, retention, revenue, referral) and other metrics that matter.


Phase 6, the “Protecting” stage, represents a critical phase in the corporate startup journey where entrepreneurs focus on safeguarding their established venture from potential disruptions. By maintaining a strong market position, fostering efficiency, embracing strategic partnerships, anticipating market trends, investing in talent, and diversifying revenue streams, entrepreneurs can thrive in Phase 6 and ensure the long-term success, profitability, and resilience of their venture. This phase sets the foundation for sustained competitiveness, continued innovation, and enduring market leadership.

The journey of a corporate startup encompasses six distinct phases, each requiring entrepreneurs to adapt their strategies and approaches. By understanding the unique demands of each phase – from discovering the problem/solution fit to protecting the established venture – entrepreneurs can navigate the challenges and maximize the opportunities presented at each stage. A clear understanding of these phases, combined with strategic decision-making and relentless pursuit of innovation, paves the way for sustainable growth, market leadership, and long-term success in the dynamic landscape of corporate entrepreneurship.

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Floris Meulensteen
Floris Meulensteen
Artikelen: 56

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