So you are ready with the business funding you have been chasing for long! Great… now you must be breathing the fresh air in your much suffocated business account.
But hey; this is not the time to relax yet! That momentary credit into your account is not the end of your much awaited transactions. There is more to figure out the appropriate ways to use this money.
You might be thinking that it won’t be a big problem however; considering the technical aspects; you will find that exploring all the equipment, products or services to boost your business, can actually keep you awake all those nights.
That could be primarily the objective of any startup funding, isn’t it? And to start on a right path, is what you can do if you focus on some key areas.
#1 – Understand the need of your customers and fulfill it.
It is well said by someone that “The best time to fix your mistakes is before you make those.” You can actually sit back and look at what you are offering to your customer before you start the production. Remember, it is the quality of your products or services that keeps your customer loyal.
A fine product and superior service is what builds trust and reliability with our customers. And that’s why, you need to be true and honest to yourself first.
Discover the components of your business that are not performing up to the mark and remove them immediately. Invest in those revenue driving segments that the customer are specifically asking and coming for.
#2 – Use advance technologies to measure your growth.
Investing in the right technology can be the most critical part of capital investments as gives you the acute insights about customers and prospects, plus helps you verify the competences of your startup in order to protect you from any hacking and data-loss calamities.
You can also seriously think about investing in a good CRM (Customer Relationship Management) software like Microsoft Dynamics or Salesforce. These software can bring huge corporate value to your startup and efficiently grow your business by keeping a track of all customer interactions, purchase history and support.
An effective CRM software ensures that your most valuable asset, the customer, is always treated as a priority; and at the same time, it also arms you with numerous tools that help you increase the sales productivity, design sales processes, create email marketing policies and work automation.
#3 – Make sure you are taking standard safety cautions.
Don’t think of it as a joke! Hackers are not targeting big brands only. There is a lot theft happening with startups too and you never know when you earned their attention.
So, it’s the need of time to give sincere thoughts to encryptions that can secure your business and customer details. You can use additional firewalls in your system and biometric recognition software for your employees.
In addition to all that, a business identity-theft protection method is also essential. Trust me, your business is just as vulnerable as your consumers. It’s not too difficult for criminals to copy your identity and use credits in its name.
#4 – Keep a check on your equipment and update when needed.
The biggest mistakes of Indian Startups is, waiting till the time some quintessential production or computing equipment breaks down completely.
Instead if we keep a regular check on the machinery; we can avoid the loss of work hour by simply replacing it on time. Just think about all those orders you might have to delay because of such incidents.
Investing in new equipment now rather than a second-hand machinery can save you all the pain and bigger expenses that are linked to an emergency replacement in future.
#5 Settle your debts as soon as possible.
If you use a business credit card or have taken some personal loans for your startup; that debt is possibly carrying a higher interest rate than your new business funding.
It’s smart to use part of your funds to settle high-interest credit balances. This will also improve your credit scores. And with the stronger business credit, you will qualify for more funding with better interest rates, when you need it again.
Being a great startup founder means knowing what you don’t know. If you’re not sure about where to invest, talk to experienced people and use their insights.
Business owners and experts from your industry can understand your issues quickly. Ask your employees for opinions; they will value your interest and trust in them as a leader. You can also discuss with expert financial planners for startups.
The Bottom Line:
Given the several options for your startup out there, it could be difficult for you to identify the smart spends that can take your business to the next level. Also to find out the expenses that turn out to be just a waste of money, is essential.
And that’s why it is recommended to take out some time to chalk out the strategic part of your startup. You might have a better sleep once you prioritize the investments in order to transform your grown up bank account into more scalable revenue growth and to measure your business dimensions.