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When to move from phase 1 to 2
Success in the initial phase of a startup involves conserving money to prolong the iteration and product improvement period. Being deeply involved with a unique vision drives the company forward. The shift from phase one to two occurs when the demand for the product surpasses the capacity of the small team. At this point, the CEO's focus transitions to building a company that can effectively capture and maximize the demand for the product, marking the beginning of phase two.