5 Tips on How Not to Lose Money on Your Startupby Fluper USA Best Mobile App Development Company in USA
Setting 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.
Created on Sep 13th 2019 01:48. Viewed 154 times.