6 Essential Tips to Build a Startup Without Having Much Money
There are two ways to build a startup. You can either attract investors with quick and crisp elevator pitches or building everything on your own.
Many entrepreneurs go down the first route, citing the importance of funds for the proper development of their ideas. The flaw of this approach is that investors are wary of funneling money into new projects.
To bypass all the difficulties that acquiring money involves, you can take the second route. Building a startup on your own only seems harder. Use these 6 tips to make the process painless and turn your startup into a legitimate, stable brand.
Don’t be discouraged
The most important tip doesn’t involve any well-kept secret or revolutionary software. Everything mostly depends on you and how willing you’re to go through with your ideas and plans. It’s important that you realize the process of self-establishment is going to be long and quite difficult.
Without investors, it’s hard to turn your ideas into reality immediately. However, you need to trust the process and try to do everything right. 44% of all startups fail within 4 years because their investments dry up. That’s why you need to stay determined and build a culture, not a funding magnet.
Start at the right time
When you don’t have money, there is another thing you have to be careful. Not many young entrepreneurs know whether the time is right and they go according to their intuition.
It’s okay to trust your instincts, but building a startup is a task that is too complex to just use your “gut.” Before you start with any plans, you need to ask yourself is the time is right.
If you’re currently in college or working in a successful company, it wouldn’t be wise to abandon everything and take a big risk. One thing you can do is be prepared. Gather data, inform yourself and get in contact with people you want on your team. Pitching an idea with yourself is sometimes more important than starting a venture.
Every entrepreneur has to come to terms with the possibility of failure. You should get your degree or save money from your current paycheck to back yourself. In case something happens, you will have a degree, plus the ability to live on your saving. There is a time for everything.
Do everything you can yourself
In the beginning, every entrepreneur is prone to giving excuses to himself and others around him. “I can’t build that app that I wanted because I need money from investors.”
No, you don’t. It’s just the easier route which is preceded by tireless pitching to investors and potential associates. Use your ideas and ignore the lack of experience you may have.
If you use all your programming knowledge to build an app, you will be able to judge it better. It’s your creation and you will know how to correct anything that might suit you. Let your founding team know that you have to work as hard as possible during the first few months and then your brand will attract interested parties and investors.
Build the brand before you build the product
Like we’ve mentioned in the previous section, you shouldn’t wait for investors to work on your projects. Work on your brand.
Even if you don’t send out pitches immediately, people will notice you due to the uniqueness of your brand identity. Build your culture and your goals. Here are a few questions that can help you establish an identity easier.
- How am I different from competitors?
- What makes my product better than other choices on the market?
- How big of a difference can I make?
- What are my target audience’s biggest problems?
- How can I solve them?
- Is there something I can do to leave a better expression?
When you build a website, make sure you equip it with the right content from writing services like Edu Birdie review or Academized review. The way you express yourself from the start determines the speed at which your startup is advancing.
It’s never easy to distinguish yourself from the competition, but it’s clear that you need to divert your attention towards the goals and ideas you have.
Find out who you are, who are your customers and how to target them. No matter how knowledgeable you may be, you need strong leadership to help you during the process.
Pick the right team
Get counselors and advisors after you establish your ideas. They should give you the best pointers on who to pick for your team.
When you’re new on the market, it’s hard to attract the best experts because many of them have established careers and positions they would be reluctant to abandon. Instead, you have to use your potential as leverage and find the same quality in potential candidates.
Look for young professionals that have talent, but lack experience. They will be thankful for an opportunity, in addition to bringing vigor and energy to the mix.
If you pick someone who is unproven, they will gladly repay you with hard work and great ideas. Also, make sure that everyone you hire is recommended by at least one person you know. That how you’ll avoid unpleasant situations.
Allocate exact roles
Before you even start with crowdfunding and attracting investors, it’s important to establish order within the leadership of your startup.
To make everything function smoothly and without delay, you need to assign roles that are clearly defined. Your employees and peers will love the fact that they always know what they have to don’t have to do.
Uncertainty reflects negatively on performance, so you want to assign everyone roles that they know the crux of. When you start looking for investors, it will also be much easier to present your team by describing roles and accomplishments corresponding to each role.
Even when your startup starts expanding, you will attract experts more easily by giving them clear instructions and information about their roles. The development process for a startup is sometimes unpleasant and intense for some people. As the founder, it is your job to make the transition as smooth as possible. Your employees and team members will realize that you treat them as people.
You might need money to create a global brand out of your startup, but you don’t need money to build it. Pick the right team to help you along the way and focus on your branding. Define roles that you give to people and reward their hard work. Most importantly, know the goals of your projects and how can they be of importance to your audience. Good luck!
About the Author
Peter Hill is one of the editors of best writing services like EssaysOnTime and NinjaEssays. He is a socially active person, likes traveling and photo/video editing. If you need any assignment writing help, please feel free to contact him. You can find him on Twitter and Facebook.