Page 145 - 6 Secrets to Startup Success

124 6 SECRETS TO STARTUP SUCCESS

9 Raise more money than you think you will need. New owners
typically view their business through rose-colored glasses,
overestimating early revenues and underestimating early
costs. A general rule of thumb: Determine what you will
need for a successful launch, in realistic terms, and then
double it. Everything will take longer, and cost more, than
you expect.

9 Realize that raising money does not equate to spending it.
You can manage your business with a bootstrapper’s
mindset while maintaining access to a healthy reserve.
Invest with confidence in areas of clear priority, but stay
mindful of your overall expense base.

9 Consider a wide a spectrum of potential sources. Consider
personal savings, financing from banks, equity investments
or personal loans from friends/family, angel or venture
capital investors, bootstrapping, etc., but understand the
tradeoffs associated with each.

9 Understand that funding choices are highly personal. Your
decisions about funding your business will be driven by
your purpose, desired lifestyle, risk-tolerance, etc. There is
no single “right” approach to funding your business.

American Management Association • www.amanet.org