
June 3, 2025
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Do you go for a run before putting your shoes on? Checkout before selecting your groceries? Celebrate your kid's graduation before they're in school?
Obviously not.
So, then, why do we try skipping steps when building our businesses?
Every startup follows the same journey. The timelines can vary wildly â Joel Gascoigne validated Buffer in a month, while Eric Simons spent seven years on StackBlitz before things really clicked.
But the phases are always the same.
In my experience, this happens because most founders think they're further along than they are; largely because they don't know what evidence to look for to verify where they're at.
They're building an MVP before validating the problem. Seeking product-market fit when no one's paid them yet. Looking to scale before understanding what customers are paying for.
This confusion is expensive. You end up solving the wrong problems, at the wrong time.
So, let's straighten things out.
In this newsletter:
The five phases every startup goes through
A 6-question diagnostic to confirm which phase youâre in
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Weekly Insight

Quick note for part-timers: the timelines I provide assume full-time hours (~40/week). Working 10 hours/week? Adjust accordingly. A 3-month phase becomes a year, and that's completely fine. Progress is progress.
Phase 1: Problem discoveryÂ
You're here if you're still figuring out what specific problem you're solving and for whom. Maybe you have a vague idea (âproductivity for entrepreneurs!â) but can't explain the exact pain point in one sentence.
What to solve for
You need to ensure the problem youâre tackling is important enough, to you, that youâd want to spend years of your life working on it. Things typically happen more slowly than youâd like, so be prepared to commit to this thing for the long haulâwhen itâs boring, unsexy and not moving forward.Â
â ď¸ Your resolve will likely never be as strong as it is when first committing to the idea, so be mindful of that in your decision-making â ď¸
Realistic timeline
1 month of talking to actual humans, doing research and internalizing the reality of solving this.
Phase 2: Solution discoveryÂ
You know the problem cold. You could write your customers' complaints better than they could. Now you're building somethingâanythingâthat solves it. (even if it's held together with duct tape and prayers)
Don't worry about getting things perfect; they will change as you go forward. Your goal here is to test solutions to the problem you've identified in step 1. Ideally, you're going to come up with realistic solutions you could execute on, then return to those you interviewed initially to see what they think.
What to solve for
Getting someone to actually pay you. Not âwouldâ pay. Not âmightâ pay. Pulling out their credit card and giving you money.
Because, hereâs the thing. People lie. Not maliciouslyâthey want to support you. When you show them your idea, they'll say encouraging things like âI could see myself using this!â or âThat's super useful!â
But nice doesnât pay the bills.
The only validation that matters is when someone trades their hard-earned money for your (imperfect) solution. Until then, you're still guessing.
Realistic timeline
3â4 months to build a solution people find valuable enough to buy.
Phase 3: Product-market fitÂ
You've got paying customers. Great! That deserves a lilâ happy dance⌠then back to work.
If I had to use one word to summarize the first 3 phases, itâs skepticism. In order to succeed, you need to be skeptical of tomorrowâs success.
You need to find out if your customers love what you've built, or if theyâre just throwing you a bone. Youâre aiming for customer feedback like âI can't work/live without this.â
What to solve for
Getting 40%+ of users to say they'd be âvery disappointedâ if your product disappeared tomorrow. This is the magic number that separates real businesses from side projects. (I explained what 40% has to do with anything in a previous newsletter)
Realistic timeline
6â9 months of constant iteration based on user feedback.
Phase 4: TractionÂ
You've built something people genuinely love. Congrats, because thatâs hard. đđź
But I have bad news. This doesnât necessarily mean you have a business.Â
To get there, youâll have to adjust your watch to marketing time.
Growth is unpredictable and customers churn for all sorts of reasons. If you want your business to succeed, you need predictable sources of new customersâboth to replace those who leave and to actually grow revenue.
â ď¸ This is the phase most people waste time thinking about before they're ready. If you haven't nailed the previous 3 phases, slow down. There's no point building go-to-market strategies when you should be perfecting your product. â ď¸
What to solve for
Predictable customer acquisition. You need to know that if you put $X into a channel, you'll get Y customers out.
Focused experimentation is the name of the game. Make concentrated plans (and I mean write it down) to test out each channel.Â
Realistic timeline
9â12 months of constantly testing channels, to find one that really works.
Phase 5: SystemsÂ
You've found product-market fit. Customers love you. Revenue is predictable. Now, finally, you have a business. Cue the sigh of relief.
It can be tempting to take your foot off the gas here, but youâd be doing yourself a disservice. Itâs more than likely that youâre critical within the business at this point. If you want to optimize life for freedom and enjoyment, you need to work on business design.Â
Build the machine that runs without youâprocesses, documentation, maybe even (gasp) employees.
What to solve for
Can the business survive a week without you? If you disappeared tomorrow, would customers still get served, bills still get paid and growth continue?
Realistic timeline
6â12 months to build foundation, then continuous improvement⌠forever (or, at least, until you sell the business).
đ Related Reading
Overcome shiny object syndrome by Kelly Snodgrass
The productivity paradox by Simon Litt (thatâs me! đđťââď¸)
Integrating customer focus in product development by the Digital E team
Many companies die from indigestion, not starvation.
Decide what youâre going to chew.
Intent to Action
Phew, okay, that was a lot of info. I want to ensure Iâm actually helping you, not just further confusing you.
Thus, a simple checklist.
In my experience, itâs really hard to be objective about the phase of business weâre in. So, I created this simple little questionnaire to answer for you.
Can you explain your customer's problem in one sentence?
No â You're in Phase 1
Yes â Continue
Has anyone paid you money?
No â You're in Phase 2
Yes â Continue
Is the solution they paid for scalable?
No â Youâre sticking around Phase 2
Yes â On you go
Would 40%+ of your customers be âvery disappointedâ if your solution disappeared?
No/Don't know â You're in Phase 3
Yes â Continue
Do you have predictable customer acquisition?
No â You're in Phase 4
Yes â Continue
Can your business run without you for a week? A month? A year?
No â You're in Phase 5
Yes â Congrats, you've built yourself a great life!
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Closing Thought
It's tempting to work on the fun stuff. The rebrand. The AI feature. The podcast.
But successful businesses aren't built on what's exciting. They're built on doing the boring, difficult, necessary work for your current phase.
So this week, be boring. Do the work thatâs actually going to move you forward.
Your future self will thank you.
Next week, Iâm revisiting the concept of a minimum viable product. Where the old-school wisdom holds, and where the idea needs to adapt in order to succeed in our âever-evolving world.â đ
See you then.
PS: Hit reply and tell me which phase you're in. I read every email and love hearing where you're at in the journey. Especially if you thought you were somewhere else before taking the quiz. đ



