There’s a lot on the line when you decide to embrace your entrepreneurial spirit and join the 472 million people worldwide attempting to start 305 million companies. In making the leap, you’re putting your name, your self-esteem, and—most importantly—your money at risk. When only 10 percent of prospective start-ups succeed, that’s Risk with a capital ‘r’. It’s easy to let the odds discourage you from chasing your dream, but you don’t have to call it quits. Let them serve as a reminder that you have to be smart if you expect to avoid failure, especially when it comes to your finances. Be as smart as you can be by checking in with these simple financial tips.
Simple Financial Tips
Let your creative juices flow
Competition is steep within the FinTech startup community. It’s long since left the status of a niche industry and is now one of the biggest growing sectors in the market. That means you’ll have millions of rivals, some of whom will be trying to launch similar products and services as your own. You need to make sure you standout from the rest.
Startups are, by nature, small ventures. If it’s not just you and a co-founder, you’ll probably have a skeleton crew of professionals to help you get to market. If your startup takes off, a tiny staff may not be able to support your growth, but early days may mean your finances aren’t ready to hire in-house employees.
Outsourcing is a workaround that can help you increase your staffing powers without investing in long-term employment. Just be careful when and how you decide to outsource. Effective outsourcing options at the start maybe:
- an SEO company to handle your online presence
- a virtual accountant to handle your bookkeeping off-site
- a graphic design company to produce web and print content for marketing campaigns
Multi-task: keep an eye on your personal finances
Your startup will take up most of your time, energy, and focus—especially in your first five years. You’ll increase your chances of success if you apply yourself properly. However, you may doom everything if you don’t learn to multi-task.
With your eye on your business, you may forget to manage your personal finances as well as you usually do. They may be vulnerable to personal emergencies like a car accident, an unexpected roaming charge, or a necessary household repair.
Personal loan are essential financial tips if you expect to cover these emergencies, but you may not be able to secure one through traditional means thanks to your entrepreneurial ways. You might have better luck with a lender like MoneyKey that has removed many of the bureaucratic barriers that prevent people from securing necessary cash loans for personal emergencies. An online payday loan is a perfect stopgap until you start paying your finances the attention they deserve.
Move away from Silicon Valley
Though you want to distance yourself from competitors in the minds of investors and consumers, you may appreciate being nearby fellow startup owners. Having a network of like-minded colleagues is one of the many reasons why so many business owners pack up and move to Silicon Valley. Unfortunately, this part of the San Francisco Bay Area boasts some of the highest prices for real estate in the country. They’re so high even Facebook and Apple employees struggle to find affordable housing.
You can slash your costs in half by moving to less expensive areas of the country. You wouldn’t be alone; investors are looking towards the Midwest as viable alternatives to the pricey Silicon Valley.
Though it’s simple, choosing the right home base for your company may mean the difference between success and failure. When failure happens 90 percent of the time, you can’t afford to overlook these money-saving tips, so keep them in mind when you launch your startup. If you like these simple financial tips, then don’t forget to give a thumbs up.