How you can unknowingly be spending much more money than needed, to less than expected growth.
Even if you have a groundbreaking, game changing, innovative product or service that practically sells itself, you can easily run your company dry of funds or seriously hurt your ability to secure further funding. Growth is the name of the game and you need to spend money to make money, but it pays to be thorough and thoughtful with these spending decisions.
I like to think that at my company, Apptopia, we do a damn good job of spending smart and it’s a core piece to running our businesses successfully. We compete against a company that has 8x the number of employees we do and more than 30 times the funding we do so we can’t spend money like they can to achieve our goals.
You’ve probably heard plenty of startup horror stories where the company runs out of cash and has to fold. Lavish parties, first class lifestyle and Michelin star dining are not smart spending choices. The two main areas where I see business owners make spending mistakes the most are on hiring and marketing, so I’d like to share some wisdom I’ve picked up over the years.