What are the few words that you associate with a startup in any sphere from mobile development to eCommerce solutions? Is it the success in inventing something new, impetuous growth and high profit? Well, it can be true but only in 15% of cases. In other cases, there is a great possibility that your startup will make you really broke like you have never been before. Why you shouldn’t be afraid of low salary and why this all can happen – read in this article.
3 Methods Of Getting Investments For Your Startup
First, from FFF or Family, Friend, and Fools – people who give you their money just because they like you or want to support without benefitting. If your startup will be funded by this type of investors, do not expect a lot of money at first (of course, if your FFF are not millionaires). Not having enough money for business requires making sacrifices, and most of the times it will be your salary. You will not be able to buy a car or maybe even scrape a living. But do not be afraid, because any brilliant startup idea will pay back later on.
15 Tips To Motivate Your Startup
- Do not be afraid of dreaming. But also do not be afraid of turning them into reality.
- It is worth listening to other people’s opinion. Do not consider yourself the only person capable to offer a genius idea.
- The manager should focus on the results of the work, not on the process.
- Concentrate, do not try to do many things at once. You must be concerned with the quality of performance.
- Every person has his own path, so look at other’s success only to be inspired, not to be jealous.
- To succeed, one must be up to insanity to a committed cause.
- Let your subordinates know that you categorically insist on the highest quality.
- Failures make us think.
- Try to have accurate information about the case, on which you’re making a decision. A good surgeon will not operate if there is another way to help the patient.
- Be untiringly inventive.
- Believe in yourself as in no one. And even more, believe in your startup.
- Growth solves (almost) all problems.
- Remember that you have more chances to be defeated by the fact that you are working poorly than on what the competitor will overwhelm you.
- Get lucky!
The other situation is when your startup has business angels. In that case, you will obviously have a lot more money for your startup, though not for yourself, because people invest money in your future product/application/service, not in you. One more thing about business angels is that they have a lot of friends in the needed fields, so you should try to meet as many people as possible. These people may become your main investors.
Check this quote of encouraging words for you from Sam Altman, the creator of the social network Loopt, partner of the incubator Y Combinator: “You’ll often hear conflicting advice about everything but “build a great product”. This means you can go either way on much of the rest of it and it doesn’t really matter. Just make a decision and get back to work. Product/market fit is what matters. You can—and will—make a lot of mistakes”.
And the last situation is when you are lucky and could attract venture funds to your startup. This situation is better than having business angels because funds will not be invested in you but the product. But you are the creator, so being invested in by venture funds can allow you to have more or less decent salary. The chance of getting venture funds is really rare because they usually do not invest in recently opened startups. You shouldn’t give up, so keep trying and you may find investors.
10 More Reasons Why You Should Never Give Up
- Learn to remain an optimist, even when your world breaks up into pieces.
- Most things are not as risky as they seem.
- Simply means good. Complexity is suspicious.
- Move fast. Speed is one of your main advantages over large companies.
- The best of leaders are not interested in what prevents them from working. They are busy, despite the difficulties known to all, and manage to do them surprisingly well.
- Set goals in front of the company and motivate people to achieve them.
- The leader should be able to say “no.”
- It is impossible to avoid troubles, breakdowns, and crises.
- Take care of the time.
- On very bad days, remember that tomorrow everything will be better because it’s harder to imagine worse!
So the reason why you may really go broke in your startup is because your income does not exceed outcomes at first, and there is a need to keep supporting your business in some ways. But soon you will start making a profit and then you will be able to pay yourself more and more as your startup grows.
Good luck with your business!