If you’re looking at getting a startup off the ground, one word going through your head may well be “lean.” Whether that’s in a Six Sigma sense, or just in the sense of keeping things tidy, it is a buzzword that is used a lot. And getting a startup going does require you to be on top of priorities. Without a doubt, you need to think about how a business can keep costs low, decisions straightforward and strategies simple.
Yes, there is a but coming. There is always a but. And here it is…
While neatness and speed are of vital importance for a startup, you need to think of it a little like a plane. Both need to take off but also need to stay up there once they have done. Undoubtedly, you don’t want to be exceeding any weight limit. You also don’t want to get a mile or two into the flight and realize you don’t have any fuel left, or that your engine is made of rubber bands. So while keeping it simple is appreciated, it needs to be balanced with ensuring things can work.
Prioritization: What You Can Afford To Do Without
When your startup is just getting going, you have absolute freedom in the decisions you make. You decide whether you need staff, and how many. You decide whether you need premises, and where they should be. You decide which equipment you need and what you don’t. But the key point is that you need certain things to function. The most important of these is capital. Without cash flow, the business is dead.
The Fewer Outgoings, The Better. Not So For Incomings.
A business that is in its infancy can give itself a better chance to thrive by keeping overheads to a minimum. This is why people often start a business in their home, only moving to premises when it becomes prudent to do so. It means fewer expenses. Less weight for that plane.
However, the more income streams your business has, the better. So one of your early outlays should be to ensure you have a sound B2B E-commerce setup. Make it easier for other businesses to give you money, and make sure you’re covered when they don’t. Risk is one of those things you can’t afford much of.
Back To The Aeroplane Metaphor For A Moment
If your startup is like a plane, then you are its pilot. And just like pilots, startup entrepreneurs will often have to work long hours. This means you have to be highly disciplined in terms of resting when you need to and knowing what you can delegate.
It doesn’t take 200 people to keep a plane in the sky, but if you’re going for the long haul, it will take more than one. Don’t run yourself into the ground trying to make things work. People make mistakes when they are tired.
Once you’ve established your startup and it’s making money, you can afford to speculate more in order to accumulate. For now, though, concentrate on getting off the ground. Establish your priorities.
This article was provided by ellie jo