From startup to company: It's not a light switch!

Startups that try to run like an established
company are doomed fail. And established companies that try to run like a startup fail, too. If those two organizational states are mutually exclusive; what about the transitional period? How does an organization switch from startup-mode to going concern-mode?

No startup CEO wakes up one day and says "Well, now that we're covering payroll and rent, I guess we should start Six Sigma training and trade in the foosball table for an HR department." That's just not how it works. The transition period from startup to going concern doesn't happen at the flick of a switch. And your people have grown accustomed to that foosball table.

Sorry, but you can't stay in startup mode forever. Just like Steve Blank said, a startup is a temporary organization. Once you've found your repeatable and scaleable business model, you must change gears. As fun as running a startup may be, it can't be done in perpetuity. Founders are often terrified of this transition. But smart founders realize they don't have to give up the culture formed during their startup phase. Nor do they have to abandon one set of skills and processes for another. The trouble is they aren't real sure how to do this without fundamentally changing everything about their fledgling company.

The good news is that many of the skills learned as an agile, fast-moving startup have plenty of application in the going concern stage. Customer validation? Still critical. Business model canvas? That tool can be extremely helpful as you narrow your focus on particular aspects of your business. Pivots? The pace of change is ever increasing. MVPs? New markets and opportunities are opening every single day.

So ignore the old adage "when I grew up, I put away childish things." Resist the temptation to mirror the practices and principles of decades-old established businesses. Instead, embrace the tools and techniques you've acquired along the way and adapt them to the new world of business that you'll create each and every day. Yesterday, those things set your company apart and allowed your startup to become successful. Tomorrow, those same things -- albeit with slight tweaks -- will let you outcompete the established players. Those same things will keep your employees loyal to your firm for years to come. And your companies' ongoing success will make your investors happy, too!

By Evo Terra.