Starting a new business can be an exciting but challenging endeavor. As an entrepreneur, it is vital to have access to the right resources and tools to set yourself up for success.
Ideally, every founder should have these five must-have resources when launching a startup:
- Financial resources: Financial resources are essential for covering the startup’s initial expenses, such as rent, salaries, and marketing. There are various ways to obtain financial resources, such as bootstrapping, crowdfunding, and venture capital.
- Intellectual resources: Your company’s intellectual capital includes the knowledge, skills, and experience needed to develop and market the startup’s product or service. These resources can be acquired through education, training, and experience.
- Physical resources: These are all the things you must pay for, such as office space, equipment, and inventory needed to operate the startup. These resources can be expensive, so minimizing costs is essential.
- Human resources: Human resources are the people who work for the startup. These resources are essential for the startup’s day-to-day operations and achieving its goals.
- Digital resources: Digital resources include the website, social media channels, and other online platforms used by the startup to reach its target market. These resources are essential for building brand awareness and generating leads.
Let’s take a closer look at each of the five critical resources.
Financial Resources
Financial resources are the lifeblood of any startup. They are needed to cover the startup’s initial expenses, such as rent, salaries, and marketing. There are a variety of ways to obtain financial resources, such as:
- Bootstrapping: Bootstrapping is a method of funding a startup using the founder’s money or the money of friends and family. This is the most common way to support a startup, but it can be limiting.
- Crowdfunding: Crowdfunding is a method of raising money from many people, typically through online platforms. This can be an excellent way to raise money for a startup with a limited budget.
- Venture capital: Venture capital is money investors provide to startups in exchange for equity. This is a more risky form of funding, but it can provide the startup with significant capital.
Physical Resources
Physical resources include the office space, equipment, and inventory needed to operate the startup. These resources can be expensive, so minimizing costs is essential. For example, you could start your business from home or rent a shared office space.
You can also leverage co-working spaces to house your growing workforce. Some co-working communities offer founders special pricing to entice newly launched startups. If you need specialized equipment to build your product, look for online auctions and other sources of gently used technology when making your first samples.
Intellectual Resources
Intellectual resources include the knowledge, skills, and experience needed to develop and market the startup’s product or service. These resources can be acquired through education, training, and experience. Investors often seek a founding team with the technical skills to build the product or service.
If you or your co-founders need to gain some of these skills, you may need to hire people with the necessary experience. Consider hiring a fractional employee, such as a fractional chief marketing officer or chief financial officer, until you have enough capital to pay for full-time staff.
Human Resources
Human resources are the people who work for the startup. These resources are essential for the startup’s day-to-day operations and achieving its goals. When hiring employees, finding people who are passionate about the startup’s mission and have the skills and experience needed to succeed is crucial.
Not everyone is suited for startup life, however. As you interview for key positions, ensure potential employees understand the risks of working at an early-stage startup. Once your company reaches 50 employees, you must ensure your business complies with federal and state regulations, so plan on hiring your core HR team before your workforce hits this target number.
Digital Resources
Digital resources include the website, social media channels, and other online platforms used by the startup to reach its target market. These resources are essential for building brand awareness and generating leads.
Ensure your website is well-designed and easy to use and that you are active and monitoring all relevant company activity on social media. Be careful when building a list of 20,000 followers on a social media platform. That following can disappear overnight if a social media company changes its algorithm or rules of who sees your company’s page. Remember to build digital resources you own, such as an email waitlist or your customer relations management (CRM) platform.
Conclusion
Launching a new startup can be a challenging but rewarding experience. By carefully considering the five critical resources mentioned above, you can increase your chances of success. Mentors and advisors can provide guidance and support, while networking opportunities can help you connect with potential customers, partners, and investors.
Consider joining an entrepreneurial community that can help support your personal development goals for you, your team, and your startup. Geekdom’s membership options in downtown San Antonio cater to professionals seeking a collaborative and supportive work environment.
The featured image shows a team raising hands in a group high five. Image credit is by pexels fauxels.
