The reality is that many startups don’t get funding and you need to have a plan B if you’re one of them. Silicon Valley startups that brag about burning through their funding money often end up failing. Just because you don’t have funding doesn’t mean you’re doomed to failure. Here are some ways to help you run your startup on a budget.
Create a sound business plan
Some startup founders fail because they may have good ideas but they have no understanding of financial fundamentals. Growing your startup the old-fashioned way means you need to generate revenue and make a profit.
If you don’t have the funding, you will need to have a source of revenue instead of just an idea without any traction. For instance, if your startup is tech-based, you probably have products or skills you can sell or outsource.
Creating small but achievable goals, such as being able to generate a certain amount of revenue within a specific time frame, is an important part of a sound business plan.
By outsourcing software development, your startup can avoid making mistakes in software development and implementation. Joinsoft.com has software developers that use the latest technologies to help your startup avoid costly mistakes.
Spend money wisely
Watch how much you spend very carefully. Many startups that receive funding spend money unwisely and it disappears very quickly without having much to show for it. Not getting funding could work in your favor by forcing you to spend money wisely. You won’t splash out on cars or expensive offices you don’t really need.
Working on a shoestring budget can instill habits that build in the type of resilience that helps your startup to survive. The more you can cut down on costs, the better your profit margins and the better your safety net if things start to go wrong.
Find a trade investor
There are many businesses with their own venture funds that may invest in your startup if they feel it is a strategic fit for their businesses. Perhaps there is a business that will see synergy in the technology you’re developing.
It may be difficult to find and convince a business owner who isn’t even thinking about investing in a startup that investing in yours is worth the risk. However, trade investors know the hard facts of the business world and if you can pitch a win-win situation, and they can clearly see the benefits, they may be willing to take the risk.
Find the right business partner
You may be a great inventor or product creator but that does not necessarily make you a good businessman. You may need a partner to help you commercialize your idea. The arrogance that you’re the only one that can make your startup succeed may just prevent you from looking for a partner with the right skills and knowledge.
You may have found a niche in the market with your good business idea but financially guiding it into a long-term reality may require knowledge and skills you don’t have and that a partner could provide.
Sell the intellectual property and branding of your startup
Even if your startup does not succeed, you still have ways to profit from it. Every startup, no matter how unsuccessful, is still likely to have some assets. If your product is software, you may be able to sell it on code markets.
If you’ve created some visibility for your company name and have some intellectual property, there may be someone in the industry that wants to purchase it. You can even sell a social media account with a significant following.