When processes become less flexible and more formal

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A startup has begun transitioning to an established business. Did You Know? The management theory of Max Weber lays out six traits of bureaucracies. You go public on the stock market. For startups, becoming publicly traded usually signifies an effort to raise funds for growth. It’s a chance for the public to buy and sell stocks of your company, which can often prove fruitful for those running the business.


That shift in size or scope — as well as the steps to saudi arabia mobile phone numbers database get there — can point to a more established business. For example, your underwriter in the IPO process is looking for requirements like consistent revenue, growth potential and promising management. Even just having the option to go public is a sign that your startup has achieved significant growth and development. You reach a specific revenue and/or profit threshold. Since startups are reliant on seed capital, financial benchmarks can be an effective way to measure your growth.


One of the most well-known growth frameworks is the 50-100-500 rule. Using this yardstick, your company is no longer a startup if you have a $50 million revenue run rate, 100 or more employees or are worth over $500 million. However, the 50-100-500 rule is not the only metric to measure whether your business is a startup. You may transition out of your startup stage once you raise over $1 million, grow your team more than 20 percent each year or engage in international business.