After days, weeks, and months of putting everything on the line, you’ve achieved it—you’ve secured funding for your startup! But this is just the beginning, and the real journey has just started. Securing funding is like unlocking the next level in a video game. You gain resources, but the challenges also become more formidable than what you’ve encountered before. Additionally, the usual cash runway for a startup begins to dry up within a year. As you take a moment to celebrate this achievement, the question that looms is, “Now what?”
While this question may appear daunting, take solace in the fact that many successful entrepreneurs have stood where you are now. Although you may have a long list of things to accomplish with your newfound financial affluence, it is wise to carefully allocate your funds to make prudent decisions.
Here is a checklist to help you make the most out of your first funding round and prepare for what lies ahead:
While hiring talented individuals is essential, ensure you have a conducive environment for them to work in. Look for people whose temperament aligns with the company’s culture and are likely to stay for the long haul. Foster inclusivity while diversifying the hiring criteria. Avoid hiring individuals out of goodwill if they are not a good fit for your company’s direction.
Create a Budget for Your Investor
Avoid becoming directionless after achieving a milestone. Be fiscally responsible and resist the urge to overspend on non-essential items. Review your business plan and cash flow forecast. Prepare a concise shopping list and provide your investor with a detailed plan on how their funding will be utilized in the initial months. Leverage the tactical knowledge your investors can offer.Prioritize Technology
Invest in essential software and hardware needed to get your startup off the ground. Plan your technical evolution wisely to make a significant difference during the initial stages.
While scaling quickly is a common goal, avoid compromising on your core values and internal structure. Learn from the mistakes of others and be conservative with your resources. Focus on delivering on the team’s expectations rather than the other way around.
In the words of Warren Buffet, “Do not save what is left after spending, but spend what is left after saving.” This fiscal advice applies to both personal and business finances.
Remember, your business plan is your guiding beacon, your investors are mentors and navigators, your team is the engine that drives your startup, and you are the driver behind it all. By approaching your funding strategically and staying focused on your goals, you can navigate the challenges and achieve success in the competitive world of startups.