Updated: Jul 13, 2021
If you’ve been wanting to start a business within the last year or so, you’ve probably thought of plenty of reasons why now is not the right time. After all, the prospect of launching a startup in the middle of a global economic crisis can seem quite intimidating.
But here’s the thing: As the pandemic is coming to a halt, you have a clear picture of what consumers need. And those needs are quite different than they were before 2020 came around. You also have access to lots of talent around the world, as well as to small business loans with favorable interest rates.
Now could be the perfect time for you to jump in and fill a need in the market. But in order to take advantage of the moment, you must come up with a plan for how you’ll obtain and manage your startup capital. And if you’re a creative professional, this may not be your number-one talent. I strive to inspire and equip creatives to succeed. That’s why I’ve provided these practical tips for stretching your startup capital:
Write a financial plan.
When you’re planning to launch a business, it’s imperative to write a detailed business plan. This document will essentially lay out your approach to marketing, personnel, and the competition. Most business plans include a financial section. But this section often does not go deep enough into the financial strategies that a startup wishes to implement.
Along with creating a thorough business plan, it’s essential to include an in-depth financial strategy, even if it means creating a separate document. This plan will outline what types of funding you need (e.g., venture capital, angel investments, small business loans, etc.), as well as how much funding you’ll need to accomplish your goals.
When creating your financial plan, consider what products or services you’re going to sell, who you’re going to sell them to, what your target audience will be willing to pay, how much it will cost you to provide the products or services, and other factors.