5 Tips on How Not to Lose Money on Your Startup
by Fluper USA Best Mobile App Development Company in USASetting up a startup of the Android app development company demands a lot of patience, creativity, perseverance, and proper management of finances without which it is impossible to carry the business forward. Are you aware of what it takes to keep the flow of money while establishing your startup? Well, for those who are venturing out in this field, here are some of the tips that would be helpful in the long run:
- Take Out Funds from Personal Savings
If you are looking for funding in
your startup, you can do so with the help of personal savings. Saving accounts
often contain more money than the checking accounts so you must surely have
sufficient funds available with you. However, having money does not mean that
you use all your savings without any prior thinking and considerations.
You must remember that the savings
account is meant to keep the money safe for a specific purpose. It is useful
during the case of an emergency, a big purchase, or an important event. And if
you are someone who wishes to start with their own business, it is best to use
your savings account when you are running short of funds.
Also, you should use your personal savings only when you have enough money to spare from it. This is the same for the retirement savings as well or home equity and insurance policy money. You are required to pay taxed when you pull out money from these funds so you must be ready for the consequences before arriving to a final decision of using money from these resources.
- Participate in Startup Events
To understand the startup space, it
is necessary that you keep yourself updated on the latest happening in this
sector. Startup events are a great way to make connections with the people, and
you can even participate in funding competitions to grab the attention of
investors. These competitions are highly competitive, and you will get to know
the worth of your idea by sharing it with others and taking inputs from the
people who are highly experienced.
In such events, the entrepreneurs
often pitch their startup idea in front of the panelists who then judge them to
make the coveted winners. These competitions can be specific to any
sector or demographics and you can find people from different age groups,
professions, and countries participating here for funding.
Once you win such competition and the investors show interest in your idea, you will receive their financial backup which will be renewed every year during the investor meetings where you need to convince them regarding the progress of your organization.
- Take Help of Crowdsourcing
Crowdfunding allows you to raise
money in but with the help of a large pool of people. Over the past two years,
around $16 billion has been raised by startups through such campaigns. An
average successful campaign has an estimate of around $7000 that lasts for
around nine weeks.
Crowdfunding introduces you to a
large network of investors who will raise money for your business, and in
return, you will be required to share your equity with them. Today, there are
several crowdfunding platforms available where you can run such campaigns and
make a mark for yourself. Some of these options are listed below:
Kickstarter: This is donation-based
funding for those who are interested in building startups around art, dance,
design, journalism, publishing, theater, technology, etc. We will need to raise
funds by impressing the panelists, or you would get nothing.
Fundable: This crowdfunding
attracts investors and funding sources in a large number and can prove to be a
good place to raise capital. One of the best things about this platform is that
you get the option to offer rewards or equity to the investors in return. This
is helpful if you want to keep the equity with yourself and raise the money
from the public.
Patreon: This particular platform is meant for entrepreneurs from the creative field who have creative projects to offer. The funding works through a subscription model where the patrons happen to pay you for the creative content that you generate.
- Build an Online Presence
Everything is going online in the
present scenario, and if you are someone who wants to establish a new business,
it is best to build your online presence by getting help by the mobile app development
company. You will be missing out on a lot of customers if you fail to
establish yourself online. Moreover, there are ways where you can garner a lot
of revenue from online sources such as ads and content.
Even when you do not sell products
online, you can make people aware of your business through your website. This
would make it easier for people to reach out to you and find out about your
organization.
In addition to the website, social
media accounts need to be handled regularly so that you can engage with your
audiences on a regular basis and announce special offers and latest updates.
Another thing that needs to be taken care of is user engagement, and this can be done by asking the people to review your website and provide them with something interactive.
- Bad Accounting can be Your Enemy
Even the smallest business
financial numbers matter to you the most and would contribute to your success
in a way. If you are not aware of these, you will never know where your money
is coming from going out of your business.
Running a business means that you
need to be organized and avoid inaccurate accounting so that there are no
issues at the later stages.
If you are slow in transactions,
you will not be able to hold a record of the money that is available with you.
It is advised that you enter the transactions into the books right away and be
ready with the final calculations. In this way, you can avoid the negative cash
flow in your business.
Hope you are now aware of the ways
in which you can save yourself from losing money from your startup. Managing
finances can seem to be hard at first, but it can save you during the
downfalls. So, make sure that you chart out the finances regularly.
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Created on Sep 13th 2019 01:48. Viewed 204 times.