TOP 5 WAYS ENTREPRENEURS LAVISH THEIR BUSINESS FUNDS
If you are an entrepreneur and your primary goal is to have a business that can flourish for a long time, then do not spend your funds on any of the things I would list below.
Today as an entrepreneur, we have more sources of getting funds for our business than ever before. Lots of sectors are thriving as new companies are founded every day. This is all thanks to access to funds for capital from various sources.
The most expensive stage of a business is the start-up stage, most entrepreneurs waste a lot of money on things that have little to nothing to do with the growth of their business. It is only natural but we can always do better.
Here are the list of things you should try not to spend money on when starting a business:
Purchasing an expensive domain name
The first thing you should put at the back of your mind is that; with little regard to the name of your business or product, people will use it if it is good. Come to think of it, how does Etisalat or Integer or Blue-Band sound? These names serves very little purpose compared to the service you provide.
After getting on a high and deciding on a perfect name for your business, the next step is buying a domain name for your website. This comes with an inevitable low; your domain name is already taken. Most entrepreneurs will spend a large amount of money to obtain the domain name but this isn’t the best step to take; because the money being spent to acquire this domain name could be used to hire the talent you need to bring your product to market. Plus, the initial name you pursued is likely going to evolve over time. It’s important to first drill down on your core value proposition before making a significant investment in the brand.
Pimping out your office space
Yes, we all want a dream office, looking perfect and having everything but doing this before your product hits the market or makes profit is always a bad way to start a business. Your first office location isn’t your permanent location. Moreover, your priority should be keeping the lights on and your employees paid.
I know of an IT company that started in a cyber-café before moving to their first office; a shop space that only consisted of tables, chairs, and a standing fan. They were already making profit at that point but the main priority of the manager was to; keep the lights on, make sure internet was available for his employees and make sure his employees got paid. Now they have a bigger office in the heart of Alausa and with time, they will go on to get a bigger one.
Employing an executive assistant
It is all about setting your priorities straight. If your first concern as a start-up is who will be scheduling your meetings or answering your calls then; I must say you have your priorities all wrong. Your number one priority in the early stage of your start-up should be hiring the talents to help you build out your product and service, and prove your value proposition. The more talents you have to help you build your product or service will influence your speed and in the start-up world, speed is everything.
This is the 21st century, there are various apps you could use to track emails, schedule meetings and automate your day. I believe it is better to employ a talent that would help your business move faster.
No one is perfect and everyone faces a problem one way or the other but the quality of a successful entrepreneur is the ability to figure problems out as you go. Like I said earlier, this is the 21st century and everything as gotten a lot easier for example; we could get solutions to lots of problems through Google, asking a fellow founder for help on LinkedIn or through various other networks. These sources can provide you with a truck load of information. Instead of whooshing to hire a third party because it “feels” too hard to learn on your own, roll up your sleeves and see what you can accomplish. You might just surprise yourself.
Upgrading your lifestyle
Oh, you just made some money so it’s time to upgrade your lifestyle? Well that is for you to answer but I’d tell you that; whether you raised, a few thousand Naira or a few million, you should never, ever excessively spend your funds by flying first class, staying in fancy hotels or expensive meals at top restaurants. You should know that every naira counts. So if that means living on indomie noodles or with three roommates in a tiny walk up apartment, so be it. If you want life with an expensive account, go back to the corporate world.