This column is authored by Deval Shah, Founder, Readinbrief
Startups usually end up spending a lot of money on things that aren’t worth investing. This blog discusses top 5 tips to use startup funds wisely.
Startups are the result of great enthusiastic minds that have the courage to take calculated risks, invest money and a have lot of patience to wait to reap ROI. Those who face the challenges and struggles at the initial phase of establishment, with the right approach, see a bright future ahead.
At times, startup owners usually get influenced by suggestions of amateurs and choose the wrong method to spend their money and utilize resources. Considering the reports, statistics and success ratio of startups till date, following are consolidated 5 pointers for efficient planning of money and resources:
Do not fall in the trap of lawyers
As a startup, you may need legal assistance, but at a very basic level. You may come across law agencies and lawyers who offer packages to serve dedicatedly to your firm. You should know that your agency is not yet established in well manner and does not need dedicated law services.
Instead it is better to hire the service as and when required instead of contracting with the law agencies in advance for all types of legal assistance.
Avoid paying exorbitant ticket rates to attend conference and events
In an attempt to gain knowledge on how to groom startups, people usually end up attending a series of events and conferences. Not only is the entry ticket to these events too high but these are utter waste of time as no 2 to 3 hour session can skyrocket your startup.
One option to learn is to take advice of people you know personally and discuss your business challenges with them. Referring videos and learning from them is also a cost as well as time saving option.
Co-working office space isn’t always good option
In order to save money, startups may opt for co-working spaces. However, this may have a negative impact on your team. If the other people sharing your working space aren’t dedicated to their work, they may spoil the culture and overall working environment.
Though small in space, get your own workplace and establish a loyal, dedicated and healthy working culture. In such environment, developers can focus on their work and deliver fast outcomes.
Save on accounting and finance services
Your startup isn’t big enough to hire accounting and finance services. When you have a handsome number of people working for you, it is easy to manage their payroll on your own.
At a later stage when the strength of your company is above 30, you may look up for some cost-effective accounting and finance service provider that best suits your business requirements.
Keep a limited budget for advertising
Marketing and advertising is essential for a startup to build a good brand reputation and spread a word about its existence among target audience. Spend wisely on advertising services as this is a very vast field and there is no limit to the money you spent on different marketing mediums.
Set aside a budget for marketing to know that you are not overspending on it. Later when you have earned decent profit, you can add to this budget and take advertising strategy to a broader scale.
Wrapping it up…
Strategic planning and management of time, money and resources is the only key to a successful startup. Owners should have a broad vision as well as the talent to tackle run time challenges and dynamic problems. Stay at the forefront of technological advancements and trends and gain a competitive edge. Good luck to all startup owners!