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Last Updated on December 4, 2017 by Work In My Pajamas
Whether you have investors or are just boot-strapping, every startup wants a strong financial position, especially at the start. Of course, some startups aren’t initially designed for monetization, so it’s important to think about financial issues both in terms of what can be earned and how money should be spent.
Here are some affordable tips any startup can use, but that will give a particularly large boost early on.
In This Post:
Pre-Sell Your Product
Let’s say you’ve got a strong beta version of your product and know you’ll be going to market soon. Don’t wait until your official launch to start selling. Instead, offer pre-sells to influencers at a discount in order to get cash coming in early. You can also use this technique to generate early buzz by putting your product in the right hands to get press and social media coverage.
Use Remote Teams to Keep Overhead Low
If a startup only requires computers and a strong internet connection, then why spend money on offices? Use remote teams to do all but the most important tasks, and you’ll be cutting out a major expense. Offer your employees free computers and reimbursement for internet fees to make sure they have the right equipment, and have weekly Skype or Hangouts to keep everyone on the same page.
Ask for Donations
This may seem strange, but people love the idea of helping getting new ideas off the ground. So why not ask for a few bucks? A lot of young startups are turning to Kickstarter or other crowdfunding sites like Move Your Mountain, but they can also use a simple “Donate” button linked to PayPal or a specialized service.
Outsource Your Back Office
There may come a point when you need HR and Accounting departments, but startups can start off using freelance services or vendors to keep labor costs low and predictable. An added benefit of using a 3rd-party for the back office stuff, is that you can minimize the amount of time you have to spend thinking about and learning business administration tasks.
The secret to getting an early financial boost is simple: earn more than you spend. Or, at least, spend as little as possible. Look for ways to limit your recurring cost and burn rate and you’ll be able to stay viable for longer. Find a way to also bring in fresh revenue and you could be off to a very strong start.
