No VC? No Problem!

Financing the early stages of your startup

Image: Freepik

It's no easy feat.

You see, most college dropouts don’t own a bank account with thousands of dollars and neither do their parents encourage most of them to risk it all and ditch college altogether. Conventional career paths are still, for the most part, respected and preferred.

The first aspect is personal. Start of by assessing your existing finances. This could be your savings from your job, earnings that accumulate from your existing job, investment income, or if you are super-lucky: inheritance.

A minimum amount of savings beforehand will stretch every dollar you put into the business a long way. As a rule of thumb make sure you have at least a year’s worth of expenses to get through the difficult times. Analyze your bank statement, cut out unnecessary costs, and divide the amount by 12 to figure out a ‘monthly estimate of your needs’.

Regardless if it’s a technology-based company or a service provider, start small and start with interns. Be transparent in terms of what their pay might be, what hours they need to put in, etc.

However, core activities should not be outsourced because firms risk losing competitive advantage.

The other side to recruiting is, “don’t recruit at all unless you desperately need to.” You are trying to save cash, not spend a night out with the boys!

Bootstrap your startup and do as many things as you can on your own till you manage to secure additional funding.

Image: Neil Patel

The founders/ co-founders should do ideally try to do most of the sales & marketing stuff.

Ideally, if you are a tech company, coding and online marketing/ promotions are the only activities where you will be spending significant time on.

Any other activity should be assigned to interns.

Crowdfunding is probably the greatest phenomenon of the 21st century. But avoid loans at all costs. Use your credit card to buy some of the initial equipment if need be, but make sure to pay it off quickly before the interest starts piling up.

Image: Austin Distel on Unsplash

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