How To Survive A First Startup Year Without Debt

how to survive first startup year debt free

For a lot of entrepreneurs, the launch of a brand new startup business is the most challenging day of their lives. In reality, the challenge happens later and consists in surviving the entire first year without going bankrupt. You may not generate enough income to call yourself rich. But avoiding bankruptcy is a success during the first three years of a business, and that should be your main objective at the start. It’s about building solid foundations to expand in the future. But in the meantime, here are four little frugal tips to help you to make it through the first year without breaking the bank. How much do you really need to launch your startup? 

You Need Cheap & Smart Marketing 

You need marketing to get noticed. But what you don’t need is to throw loads of cash at it for your strategy to work. In fact, you can adopt cost-friendly marketing approaches that can be equally effective. Good marketing starts with an effective goal that is not only specific but also measurable and realistic. You don’t do marketing just for the sake of it. You do it because you are trying to achieve something concrete, such as growing your customer base, for example. Your goal could also make the most of the available opportunities for your startup. Being opportunitistic means that you come across more chances for less. 

Not Everything Needs To Be Brand New 

A common mistake is to think that as a business, you should buy the most innovative and modern equipment. If you need to equip your business, you can start with second-hand furniture and spare parts to keep things running smoothly for less. You can find a lot of reliable suppliers: click here for all parts related to pumps if your startup is in a technical sector, or check this for day-to-day office gear. The bottom line is don’t buy new unless you can’t avoid it. 

Don’t Hire More Than You Can Afford 

You might have dreamed of a large team of loyal employees, but as a startup, you need to be sure of when the right time for recruiting is. Indeed, if you hire too early, you'll struggle with cash flow issues. Too late and you’ll struggle with your projects. As a rule of a thumb, you should only start to hire when you know that the tasks to be done will be profitable or when you need new skill sets to complete projects. 

Can You Work Without An Office? 

There’s a big question that a lot of entrepreneurs ask: Can I work from home? The answer will depend on your type of offering and activities. If you rely a lot on digital tools and production, you can follow the example of Buffer and ditch the office for good. In fact, very early in their history, Buffer understood that there was no advantage for employees to come to the office. Working remotely or outsourcing facilities / services and getting everything done at home was just as good, if not better. Embracing the remote culture means that you can save a lot of costs when it comes to premises and office gear. 

Startup Smart

From working from home to building smart marketing strategies, your startup’s survival depends on your ability to think smartly to cut down costs with compromising on quality. Startup smarter and avoid early debt or loss of equity!

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I hope you enjoyed this article about how to survive the challenging first year of your startup without losing money.

Interested in more articles about starting a business successfully?

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