By Danila Palmieri
So, you’ve finally gotten the funding you’ve been working for. Now, what’s next?
What do you do to actually optimize and build off of it? There are so many ways to slightly misstep in your follow-through and lose your precious momentum. We’ve compiled some quick tips to make sure your hard-earned funding doesn’t go to waste.
- Create a detailed plan
Having an actual, written (or typed) out plan can help your business avoid any unnecessary spending and waste. While you’re creating this plan, don’t touch much of your funding – it is very easy to get money and start spending frivolously. Similarly, don’t go on a hiring spree with the hopes of fast-tracking the growth of your company. The first part of this plan should be to create a detailed budget for the future. With that, you should also identify your business goals and objectives. Staying organized is absolutely vital to growing your company. You got the funding, so how are you going to use it to meet those goals? You must align your budget and those goals to move forward.
- Prioritize growth
You wanted this funding to help grow your business and meet your own set of goals. You now have a detailed budget, so take it a step further to list out actionable plans for how you’ll achieve new thresholds for growth. Having the money doesn’t do much good if you can’t use it to your advantage. Consider what these goals might cost in time, energy, and people. As we mentioned in our previous blog post on funding options, “No matter the funding option you choose, any new business owner that seeks growth requires an excellent strategic plan to move from bootstrapping with your own capital to eventually attracting the funding that will help your business flourish.”
With your new budget, you should have a trustworthy accounting team to help keep everything organized and flowing. Consider this: “82% of businesses that fail, do so because of cash flow problems” (Small Biz Genius), and realize how importance this new cash flow can be to the long-term growth of your company. Investing in a solid team can help prioritize this and bring great results. Consider the extent of your funding, as well as the goals for growth, and then you can assess what type of team you might need. Answering these questions can help you determine how large of a team you need, how devoted they need to be to specific projects, and even if you should consider an outside firm to help with your accounting. Having this dedicated team can help keep your business on track for various objectives and milestones.
- Invest Well
What’s better than your original funding? Funding that can drum up new business and customers. You’ll of course have to use some of your funding to cover various costs and keep the lights on, but you can also place it into specific areas of the business that prioritize growth. Investing in areas like marketing and advertising can help accelerate the growth of your business and reach new demographics of customers.
- Keep searching for funding!
Money goes quickly, especially with investment into new business ventures or the advertisement of current ventures. Knowing how to optimize your funding is something that won’t work well in a static plan; it will be constantly evolving and in need of minor revisions. The Small Business Chronicle discusses the importance of funding, writing, “The more working capital you have, the stronger the chances you can make your business a success. It’s no guarantee, but not having to worry about funding gives you an advantage your competition might not have.” Remember that as you continue to use your funding, and work to gain more funding in the future.
Trying to optimize your funding can be stressful and potentially time consuming. As always, UnniCo Ventures is here to help with any of your financial and business needs. Our team at Ventures wants your business to grow and meet all your future goals. Learning how to best use (or plan to use) your funding can help your business be the best it can be.