startup

5 things to do when bootstrapping your Startup

2020-02-01T15:46:08+00:00 April 30th, 2019|Categories: Entrepreneur, startupgold, TheStartUpGold|Tags: , , , , , , , , |

Pitch decks, Venture Capitalists, Angel Investors are almost synonymous with Startups today. Now these are great ways to get funds but when you are starting your business, you probably do not need half a million pounds right away to grow. You may find that through self funding you can raise a good portion of the money you need to setup and get your first clients through the door.

Bootstrapping a startup business is the concept of using existing resources, what is already have in hand, to achieve a goal.

Is it easy? no it is not, particularly if you don’t have a regular source of income.

A lot of new business owners are already rockstars at doing the most with minimal resources (hands up mums in the house) The same applies when starting up your business. Don’t go pitching to investors just yet or procrastinate on starting your business because you have written up a startup valuation that seems out of reach.

Try these bootstrapping tips first.

Cut back on splurging

I guess this goes without saying. If you need the money then cut back on spend. That Fendi Baguette, or pair of Balmain boots will have to wait.

Build a business portfolio you can take to the bank first then you can splurge on luxuries later.

As you start to build the business keep an eye on expenses.

Surround yourself with inspiring and driven people

Ever felt like you needed some shopping therapy and then your girlfriend comes round to remind you – You Only Live Once? So you hit the stores and head into Soho for dinner, willing your savings goal to come back. Sadly a vision of Shrimp and Lobster with spicy lemon dressing for dinner at Nobu’s wins.

Ditch your goal-less friends while you bootstrap to grow your business. Find yourself some new friends that will keep you motivated.

Always go for the Best and Final Offer

Corporate giants do this stuff all the time.

When making a purchase to start your business, ask the seller for their best and final offer before placing an order. Do the same with other sellers then go for the most competitive price.

In other words, haggle like your life depends on it (professionally of course) If procurement teams at large corporates do this to save business costs, how much more your humble self? There is no shame in negotiating. Make your money work for you as you build your business.

One thing to be mindful of though is not to compromise quality for cost. Verify the quality of what the seller is offering before committing to the sale.

Use your vision board

Have a vision of what you want to achieve. If you don’t have a board that’s pinned up on your wall, keep a mental visual of what success feels like. Use this as your motivation when you feel like giving up.

Keep your big vision in mind. Fix your eyes on the prize – Always.

Get some assistance

Perhaps bank of mum and dad might be generous, or you have friends who believe in your idea and can support. Crowdfunding might be another way to go. Think of some alternative sources of raising money and use as many channels as you have available to you within your inner circle to secure your business funds.

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7 Hacks to get prompt payments from customers

2020-01-04T13:11:55+00:00 January 10th, 2019|Categories: TheStartUpGold|Tags: , , , , , , , , |

Continuous late or delayed payments can very easily bring a startup business to its knees. A healthy cashflow allows businesses make the required investments to grow. A firm hand on spend and income is really important for a Startup to be successful.

Customers are key to this as most of the business income will come from invoices that have been sent out in return for goods and services they have procured.

It isn’t uncommon to find customers that wouldn’t bust a gut to pay their dues on time. If you run a business, here are seven ways you can get your money’s worth on time.

Bill on time

Have a set time of the month to verify all invoices have been sent. A lack of organisation could result in your customers receiving an invoice too late to meet your payment target date. You might also overlook certain areas that have been charged resulting in lost payment.

Use technology

Reduce the stress on customers and make it quick and easy to make payment using a mobile and online system. Google Pay, Amazon Pay, Paypal, Apple Pay and Stripe are some more popular choices with online businesses today.

Hire a watchdog

In other words, hire a book keeper or book keeping service to keep track of where the money is being held up and do the follow up. A book keeper can help prevent errors with invoicing as well as manage your company cash inflow and outflow.

Maintain a professional client relationship

Business is Business and fees are due after you have delivered a good or service. Gratitude isn’t an acceptable form or payment if you are in business to make profit unless you see this as a means of increasing customer loyalty and expect more business in the longer term.

Have an agreement

The terms of your agreement covers what you are billing for, make this clear and obtain an agreement before proceeding with the work. Ensure this is mapped out clearly on invoices to avoid delays with clarification. Itemise all necessary areas, such as quantity, hours worked, discount if any or VAT.

Offer a payment plan

Give customers a flexible option for payment such as spreading the costs and offer incentives for quick payment. If you pursue a flexible option for payment ensure you have a water tight agreement in place.

Have a late payment policy

Ensure this is set out clearly from the onset in the terms of your service as it shouldn’t come as surprise to your client. Send a courtesy reminder about late penalties to the client before your deadline and ensure whatever you charge, it is in line with the laws in your area.

Are there are other strategies you use to ensure prompt payment from customers? Let’s continue the discussion, Join our community for more business tips and share yours with other entrepreneurs.

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