Everyone has heard the horror stories. Whether its about the illegally misappropriated cash, or the CEO using the money he swindled from investors to take lavish trips to Vegas to party with his buddies, there are plenty of ways to misspend startup money. With so many ways to spend funds correctly, what are a few examples of smart spending, in regards to a startup?
1) Expand:
An influx in cash means that you can take risks (in moderation, of course). In this case, a risk would be taking a stab at additional sales. Even if you don’t establish a physical presence in a new location, there are ways to be present virtually that can garner a serious increase in sales in the long-run.
Setting-up a toll-free number and marketing it in different areas is a great way to connect with potential clients, and when coupled with a comprehensive social media strategy, a toll-free number can exist as a marketable brand.
2) Technology Upgrade:
Replacing office technology with newer, more efficient devices can boost office productivity twofold. First, the newer devices come with upgraded features that give additional access to your employees, making them generally more productive than they would have been on their old computers. Second, new technology would boost office morale, leading to happier, more energetic employees.
3) Move:
Take advantage of the money that you have to move your company to a small, personal location. Space will be a minor inconvenience in the beginning, but saving money by relocating to a more cost-effective location will pay off long-term. To save space, have employees work remotely on certain days, and come into the central office every once in awhile to meet. This gives employees a sense of freedom and trust that they likely haven’t had before.
4) Hire:
The perception that “more employees equals increased output,” can be easily challenged, but when a company has the option to add additional employees, it shouldn’t balk. Hiring enthusiastic, young employees can bring a new (or added) sense of enthusiasm to the fold. Delegating new employees to cover the range of business-related tasks will increase office efficiency by making everyone’s job easier. Hiring new employees gives a chance to mould workers to become what your business needs.
5) Business Trip:
No, this isn’t a euphemism. Take a few employees on an actual business trip, maybe to visit a client in another state, or an appropriate trade show to mingle with potential clients. While communication is easier than it has ever been, nothing conveys a message of trust like a smile and a handshake. It’ll impress an older clientele, and allow clients and potential clients to put a face to the name.
6) Give a Raise:
Congratulations! You’ve got the startup money that you have been working so hard to get. Now that you have it, why not reward the few employees that you have with a raise and a few additional vacation days. This move succeeds in boosting company loyalty, and shows everyone that great results get rewarded. While this can be considered a bit short-sighted, your employees have already proven that they can get things done, so rewarding them for their hard work will only solidify trust in them and their abilities going forward.
