Gaining funding is a very important milestone in a business but is that it? Does having money insinuate growth by itself? No, it doesn’t. Many people don’t believe it but even after you have the money, you need to ensure that you don’t lose your focus. Otherwise, your business will easily go downhill and you will be back to where you started.
What do you do then? What do you do once you get the funding? What’s next? Read on to find out:
No Hiring Initially
Again, money does not mean that you start expanding your team. Remember that expanding the company and expanding the team are two different things. You should bring in more investors to ensure growth of your team. You don’t need to hire just because you ‘can’ now unless you actually need to expand your team.
You need to wait at least for a month before hiring.
Lay off initially and don’t hire anyone. But after a while you will definitely see the need to expand your team. At this point, you can start hiring. You should change your hiring process entirely now that you have the money.
When you had just started you surely hired only the generalists because you couldn’t afford to pay the specialists. Now is the time to move one step up and hire the specialists. These specialists will put in all their focus on different aspects of your business and improve it substantially.
Grasping the hiring process once you have the money will take time and that is the reason why you should first after you get funding.
Hire According to the Requirements
Many people first hire and then think about deploying the talent people later on. That is not how it should work. Hiring first and figuring out later is the wrong order. You should first realize what you are looking for and then hire likewise.
Thus, again, you should wait when you get the funding so that you know what you need. Once that is clear, you can hire particular people who fit your requirements. Also, give them the work to do. Don’t assume that just because they are talented, they’ll figure work out all by themselves.
Don’t Waver from your Goals
Raising money is the goal that many startups focus on first up. They need the money. Of course, that goal is good enough to keep you going but what when you achieve that goal? It can confuse you as well as your team members.
Hold meetings regularly once you gain funding and come up with a vision to stick to. Now that you have the money, your aim should be to make your business even better. Discuss with your team about the future and how you will use the funds for the betterment of the company.
Remember, the vision must always be straight.
This is where an accountant should come into the picture. Thinking that you will be able to manage such a huge amount of money by yourself is stupidity. Now that you have enough money, you need a professional accountant to handle it for you.
There is nothing worse than a company not using its finances properly. That can spell doom because investors will want details about your finances and won’t be able to provide them because you are no accountant.
These tips will help you use your money right and ensure exponential growth of your company.
Right from the day you start your business, your focus is on earning money. Once you earn the money, it is easy to get distracted because you don’t know what to do next. Know that hiring is not the only way to grow. Bring in investors, call meetings to discuss how to use the money, hire the specialists once you change your perspective, and hire an accountant to manage all the money.