Inc.com recently published a post by Author Marla Tabaka on pitfalls to steer clear of. I personally liked her idea of laying out a start-up budget that you feel most comfortable with. I’ve heard competing arguments for and against incurring debt to launch the business, and there’s really no wrong answer. However, in certain situations (especially when a competitor has clearly spent boatloads to get started) it may be in your best interest (financially and peace of mind) to go as lean as you can, so that you learn to make adjustments and work with what you have. This builds innovation and creativity, and as the article put it, “Make creativity not cash your start-up mantra”. Marla’s list of tips includes:

  • Come up with a financial framework – and stay within it
  • Substitute brains for bucks
  • Don’t overspend on image
  • Go the “guerilla marketing” route
  • Don’t outsource prematurely
  • Vet vendors carefully
  • Watch your pricing
  • Stay true to your original vision

For a full description of Marla’s tips, see her full article.

Advertisements