Most startup founders think about raising funds from investors quickly. There is much capital in the market for new businesses. External funds are handy in startup development. Before you ask investors about the money, you should try to start without such support. A vision of extra funds on your bank account could be very tempting, but you should focus on the problem you want to solve initially.
Your first goal should be to confirm your business idea. Do it quick and cheap. Get the feedback and see what you get. Start fast and spread your idea to people. Why is it so important? Because you don’t have a crystal ball and only the voice of customers could verify your business. Building a startup with your funds is an excellent idea for many reasons:
- Efficiency – when you have a few resources, you will search for the most effective way to spend them. So you can learn how much every single dollar’s worth is. If you can’t do it with your capital, how will you do it with someone else?
- Freeware – there are many free tools that you can use. And you should find it. It’s unnecessary to spend much money on CRM, ERP, big websites, or other things when you have a single customer.
- Control – you can drive your startup in the way that you like. Nobody will tell you what to do.
- Satisfaction – every new customer could be a success for your business. And you will take more care of each of your early clients.
- Shares – starting with your own money will let you have control over your business shares. It’s crucial in case if someday you’ll look for investment. Your shares will be worth much more than if you gave them away at the beginning.
- Savings – there are many other ways to bring funding to your startup. You have savings that you can use. If not, you can always ask family, friends or other guys to lend you some money.
- Proof – if you can do something big without external cash, the way to success is open for you. Think about how you can scale your business with the investor’s money. They like when something works.
Building your startup foundation without investor’s money is not so hard. Test your idea, spend money wisely, gain experience and take care of every customer. Grow your startup brick by brick. That’s excellent preparation for the expansion and rising VC investment. Go for it!
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