Finding the finance for a startup is rarely simple. You have to beg, borrow and all but sell your soul to get that precious startup capital that will hopefully propel you on to great things, which is why it is so important that you take steps to stretch it as far as it will go and for as long as possible.
Here are some simple tips for stretching that startup capital that won’t prevent you from conquering the world…well, you’re niche:
Write a Financial Plan
Where so many startups go wrong is that they fail to focus on their finances when setting up a business plan. Marketing, personnel, beating the competition? Sure, they’ve got that covered, but their incomings and outgoings is often a different story, once they’ve worked out their break even point.
If you don’t want to wake up one day to realise the well has all but run dry, take the time to think about what you’re making, who will buy it and how much they’ll pay and do your sums on the production side and you should be ok.
Set a Strategy
Right from the beginning, you need to work out exactly what it is you want your new business to achieve in its first few months and you to build a team around your plans. You might want to dip your toes into a million different areas, but when you’re starting out, it’s better to narrow your focus and do one thing well before moving on. If you try to do too many things and have no real strategy in place, you’ll hemorrhage money without really making your mark on the world.
Whether you’re looking for the best complete language translation services, freelancers to set you up a brand new website or developers who can make you an irresistible new app to bring the customers to your door, you should always shop around. There are several excellent freelance job sites, which will enable you to take your pick from a talented pool of individuals, without having to go to the extra cost of offering them full employment. When you are more established, and your business is bringing in more money, you can build your team up, perhaps using some of the freelancers you’ve built relationships with in the beginning.
Don’t Blow the Budget on the Office
So manystartupsthink that, if they want to make it amongst the big boys, they have to have a fancy pants office, which is filled with expensive furniture and eye-watering interior design. This isn’t the case. What really matters are the products and services you offer and your ability to deliver. Save your money and start out with small rented premises until you are one of the big boys and then you can afford the fanciest office in the city.
Know When to Splurge
Being frugal is important as a startup, but that doesn’t mean you should never spend more money than is strictly necessary on anything. For example, spending a couple of hundred dollars on a great freelance writer rather than $20 on an overseas content mill writer is likely to see better results in terms of visits to your website. It’s all about finding the balance and weigh up what is and isn’t important in those early stages.