Entrepreneurship and Small Business (ESB) Certification Practice Exam

At what stage does one start to earn revenue?

1. Traction

2. Growth

3. Monetization

4. Prototype

The correct answer is: Monetization

The correct choice is related to the phase in a business's lifecycle where it shifts from developing products or services to actively generating income from them. In the monetization stage, a business has typically created its offerings and is implementing strategies to start making sales, thus generating revenue. This stage revolves around establishing pricing strategies, reaching out to potential customers, and converting interest into actual sales. While traction refers to the point where a business starts to gain customers and market acceptance, it does not necessarily mean the company is generating consistent revenue. The growth stage often follows monetization and usually involves expanding sales and scaling operations after a business has established its revenue model. The prototype stage is focused on the development and testing of a product rather than the revenue-generating activities associated with monetization. Therefore, the monetization stage is where businesses first earn revenue.