You’re starting a new business. Like many entrepreneurs, you probably need to be conscious about how, where, and when you spend your start up money. You’re not alone. Indeed, of the biggest challenges many new businesses face is ensuring they don’t burn through their startup piggy bank too fast.
How do you avoid burning through your find? To start, self-fund through cash flow as long as you can. If you must raise outside money, try to make each round of capital last at least eighteen months.
Read on for more some strategies…
1. Create a financial plan. Your business plan should clearly delineate your business model, objectives, financial wherewithal, and more. Learn more about what your financial plan should look like here.
3. Starts simple. While a Google-type office space may be enticing, it’s often not necessary (or a wise use of funds) when you are in start up mode. Look for a reasonable office space with favorable lease terms.
4. Sometimes it takes money to make money. This old adage has stuck around for a reason. Sometimes, you may not be able to generate revenue without the right investments.
5. Invest in talent carefully. Your team will define your business’s path. Make sure you build a team that encompasses the company’s mission statement and short-term and long-term goals. Hiring decisions, including those around salary, should not be made lightly.
Starting a new business can be an understandably stressful and exciting time. To ensure that you are on the right path, particularly with choosing the right corporate structure for your venture, contact one of the experienced Los Angeles business lawyers at Hart, Watters & Carter today.