20 Dec Money is Not a Startups Biggest Problem
Almost all new entrepreneurs find themselves tight on money. That is part of the risk factor most entrepreneurs must face. But, looking for a lottery ticket is not the best way to resolve this issue. What will more likely lead to a success story for an entrepreneur of a startup company is learning how to be resourceful by properly managing the limited amount of resources they have.Entrepreneurs that focus on solutions and not their problems are prepared to run a startup company.Click To Tweet
Well-Known Funding Success Stories
When you hear about stories of startups getting millions in funding, what you don’t hear much about is how and why – the story behind the story. What was discussed in the boardroom with the venture capitalist (VC), and why did they invest? Startups that get funded are not just comprised of a person with a great idea. In most cases, it is a group of people that have proven they can move the yard sticks down the field, and make 1st downs regardless of the limited resources they have. That is who typically gets funded!
“Every day I get numerous emails from software and Internet entrepreneurs describing their newest ideas.
Often these entrepreneurs think their idea is brand new – that no one has ever thought of it before. Other times they ask me to sign a non-disclosure agreement to protect their idea. Occasionally the emails mysteriously allude to the idea without really saying what it is.
These entrepreneurs think their idea is special and magic. And they are wrong.
The great entrepreneurs are already focused on the implementation of their idea. They send me links to their website or software. They describe the business they are in the process of creating (or have already created). They point me to what they’ve done to implement their idea and show real users who validate that the idea is important. And they quickly move past the idea to the execution of the idea.”
– Brad Feld, Managing Director at Foundry Group
Going All In
It is admirable when an entrepreneur has or plans to invest their life savings into their new venture. Going all in is usually a necessity to go from having an idea to making an impact. An entrepreneur that has invested their own money demonstrates they are committed, and usually willing to do whatever it takes. And, commitment is very important!
However, if a significant amount of money has already been spent bootstrapping a startup, and little to no sales have occurred, a major change is probably required. Ideally, it is better and easier to make these changes before running out of money. But,many 1st time entrepreneurs go broke because they don't know what to change and how to change it.Click To Tweet
In order to make good business decisions, a group will always yield better answers to a problem. Bringing in professionals to help manage a business is a wise thing to do before digging a hole that becomes too large to fill.
In many instances, I find myself saving entrepreneurs and startup companies thousands of dollars just over a 5-15 minute conversation. It is not because my ideas are so incredible, it is because I have a much different perspective on the business compared to the CEO or employees.
Never Enough Time
Money is not an entrepreneurs only resource that is constantly strapped. Time is a major resource that needs to be managed properly. The saying, “Time is money,” is a good way to think about it. If something takes you 20-hours to accomplish what would take someone else 2-hours to accomplish, What is that worth to you and your company? It should be worth at least 18- hours x $ ________ (place a value on your time) = _________ (savings).
So much to do, and not enough time to do it! That is the storyline for all startups and entrepreneurs. Those entrepreneurs that manage money and time well, have a huge advantage, because time ought to be viewed as a valuable resource. The right outside help can not only help better navigate a business, it can also help save an enormous amount of time.
How to Move Forward
Perhaps up until now you have been totally consumed by money problems. As an entrepreneur that needs to get over the “hump,” you have to learn how to manage money, people, and time well.As an entrepreneur, you need to be resourceful, not focused on the problems, but the solutions.Click To Tweet
Look for creative solutions to problems, and engage people that are needed to get another 1st down, and get you over the goal-line. If you are making 1st downs and scoring touchdowns, money may have been your biggest problem in the past, but now it will become your smallest problem. Everyone will want to invest in proven ideas!
Ask yourself these questions:
- Are you focused on solutions or problems?
- How well are you managing your time right now?
- What areas of your startup company are you focused on most based on time allocation?
- Do you have the right people involved to push your idea forward?
- What are you willing to give to get the right people involved?