3 Things Entrepreneurs Waste Money On
So you quit your job and launched a startup. Congratulations! As exciting as this is, you just jumped on sinking ship. There are holes everywhere and water is pouring in. What do you do now?
The analogy of the sinking ship is one of our favorites. Whenever you start a business or a new venture, you’re jumping on that ship. Most of the time you do not have a product, cash, or customers. What an ideal situation! Let’s not make the situation even worse by spending money on the non essentials.
It is totally understandable to look at successful startups with great branding, office spaces and huge following. However, all that didn’t happen on day one. Remember, you are on the sinking ship and you are trying to survive.
At this stage in your startup a fancy logo is not necessary at all. Your product will be refined many times over the next couple of months and you might pivot from your original idea. Let’s focus on a simple color scheme and a typographical logo to compliment your business. Anything beyond that is adding more water to the ship.
Startup environment is very casual and you will find some of the most successful startup entrepreneurs wearing jeans and a tshirt. Some of the most common give-aways for any startup are branded tshirts, koozies, stickers, etc. Marc Cuban, famous entrepreneur and owner of NBA team Dallas Mavericks, has this to say about startup swag: “A sure sign of failure for a startup is when someone sends me logo-embroidered polo shirts….if you really think people are going to wear your branded polo when they’re out and about, you are mistaken and have no idea how to spend your money.”
Let’s clarify this. Outsourcing is not a bad thing in itself. A lot of work is becoming more and more outsourced, including things like personal assistants. However, do not outsource something that you know nothing about. How will you find the right resource? How will you communicate requirements? How do you know the work is done right? One of the core businesses for Dabble Lab is that we are able to manage technical resources because we know the proper way to write code and what the outcome should be. But if you are not even sure what you’re looking at, how would you check the work of the freelancer?
We highly recommend that you keep your finances in check when launching a startup. You and your team should spend time and outline what are the necessities going forward and stick to your plan. Remember, your boat is sinking and time is running out.
Do you have more questions about startups or Dabble Lab? Schedule a call and let’s talk.