The Last Thing That a Startup Needs
On of the difficulties a startup has on its first days is finding investors who are willing to take the risk. Almost every startup needs to go through this stage since that at the beginning the costs are much higher than the revenues. The last thing that a startup needs at its first steps are another expenses or unexpected costs.
According to latest studies, there are ways to avoid unexpected expenses or at least reduce their number to minimum – Planning your moves carefully, using the experience of similar startups, recruiting the right personnel from the start and using insurance companies or home warranty companies to make an appliances insurance are part of a list detailed below:
a prior planning to the actions that a startup takes is essentially to create as many of them correctly and therefore reduce the number of mistakes. There are many articles and books on this subject like the one in startupowl when we talk about planning a startup. However, as the title of this article says: “Success in planning is a planning for success” – That is the important thing to remember and it will help you spend your money correctly. You can read a great story about the spirit of resilience and how planning ahead is the first, most crucial step in creating a business, by reading this post about Bernard Groves.
always ask another person opinion and try to learn from the experience of other. Reading use-cases about success and failure of other startups will help your startup proceed to the right direction. Like my father used to say: “one man’s mistake is another man’s treasure”. Find those treasures, use them to avoid mistakes that others did and protect your investors.
Invest huge resources in the recruitment of your personal. one person out of 15 is much more important than one person out of 2,000. The first employees that join your startup has a substantial effect on whether it is going to succeed quickly or fail fast. Your employees are one of the major costs in the life of a startup. Investing in the right persons will keep your business save and keep it out of using your resources in vain.
– one excellent way to avoid a large unexpected cost is using insurance companies. Buying insurance policies to make sure your employees are safe and joining a home warranty service by buying an appliances insurance may be a very wise way to do it. Home warranty protection plan is very common in USA. You can find USA home warranties by state that will save you hassle. The advantage of using a home warranty services is making the unexpected repair cost disappear by making a small payment and purchasing a home warranty plan.
hiring freelancers to do a one-time job may be your best choice, and may be better than doing it yourself. Freelancer usually are more professional in a specific area. However, they probably won’t have the same understanding of the business as an employee would have. Thus, it is important to explain all the details when hiring one. If the process is done correctly, it will definitely save you a lot of time and some money.
Only a small percent of the Startups succeeds. It is essentially for it success to try and reduce your costs to minimum or at least make them as expected as you can. Certainty and transparency will help you communicate better with your investors. Use freelancers and insurance companies like home warranty services help to create more certainty. The right recruitment help to save money in the long run. However, do not forget that planning and using other experience are the key to success. Understanding that at early stages will determine what happens in the future.