Funded startups that suddenly find themselves flush with cash need to know how to put it to good use to impress their investors and grow. Unfortunately, there is no shortage of stories of startups growing too fast and falling on their faces. Young entrepreneurs rarely have the experience to allocate large amounts of funds, which can lead to slow, unnecessary purchases or overspending. Being able to properly and effectively distribute the investment will be critical to the future success of the young company.
1. Increase Staff
After receiving a major investment, most startups will immediately look to increase their workforce. Unfortunately, this can easily lead to overstaffing. While a strong sales team is important to increase revenue, the infrastructure and tools need to be in place before these employees can be effective. Hiring a balanced staff will provide far more benefits than overstaffing a single department to drive sales. (A robust sales team is of no use if the website crashes whenever a customer attempts to complete a purchase). Growing the business horizontally to establish a strong employee foundation will provide many long-term benefits, and can help prevent wasted capital.
2. Manage Finances
Building a dedicated accounting department is the best thing a startup can do to accurately monitoring expenses and revenues. This will give the young company a strong handle on where it is spending unnecessary funds, and it can identify which aspects of the business need more money. Also, it will provide a set of clean books, which will be indispensable for future growth projections and in attracting additional investors. A strong chief financial officer will hold the rapidly growing startup accountable for its purchases and investments to assist in understanding what makes the business profitable.
3. Continue Research
Investors want to see consistent progress and growth after that first round of funding, which is why startups should always invest in research and development. Whether it is fixing current systems or designing a new product, perfecting current offerings and/or developing new ones are essential to long-term, sustainable growth. Additionally, now more than ever, the user experience and design of the product and website contribute significantly to sales and customer loyalty. If your website or product have a poor design, you will find that it is difficult to retain customers.
4. Hire IT
Hiring tech support or an IT team, depending on your size, increases data security and decrease productivity loss due to technology down time. This dedicated group will ensure internal and external systems are properly maintained in working order, allowing the business to continue operating efficiently. In addition to avoiding potential downtime, an IT team will keep proprietary data and sensitive information safe from hackers. Depending on the industry, data encryption may be mandatory.
5. Ensure Legality
An important area that is frequently overlooked by startups is creating a proper legal department or ongoing partnership. Every startup will need legal advice, and with local, state and federal laws consistently changing, the need for legal guidance grows more important. Writing, reviewing and executing the necessary legal documentation can protect the budding business from any negative ramifications, as well as ensure growth is always on the right side of the law. If the startup relies on its intellectual property (IP), there is a strong need for consistent legal council to monitor and maintain a strong portfolio.
The best legal defense is prevention, and working with a qualified business attorney can reduce the chances of lengthy, expensive court battles.
6. Market Yourself
Depending on the stage of the startup, a marketing team can provide a significant boost to the bottom line of the company. These experts can create and run lead generation campaigns, Google Adwords, social media strategies, content marketing and vendor relations. All of which will increase the exposure of the business. A brand with little awareness will have trouble reaching its target audience without an apt marketing team that knows where to find its customers. Growing the presence of the brand and entering new markets will be critical to the development of the startup and to impressing investors.
7. Office Space
A rapidly growing business will need a new office to house all of its employees and equipment. When selecting the new location, there are several aspects that should be taken into consideration: size, projected growth, location and layout. Young companies often rent or purchase an office space that is too lavish or too large for their current stage. While they may want to feel like they have hit success, they do not have the sustainable revenue to fund their luxurious accommodations. Projected growth should also be considered when choosing a new office, but with a reasonable timeline and expectations so as to avoid straining resources. When seeking office space, the layout should be taken into consideration, as it can reinforce the culture of the business. A well-built office culture will also attract top talent, which will be key to the forward progress of the company.
Time is one of the most valuable resources to a startup, and spending those much-needed funds on areas that will increase efficiency can be highly rewarding. Rapidly growing startups frequently fall into the trap of overspending when they receive a large investment. However, this fear should not deter entrepreneurs from spending money, as some expenses are necessary and others can offer incredible benefits. The more efficient a startup can spend its money, the better it is positioned for long-term success. Working with current investors, partners and a qualified business attorney can poise a young startup for a healthy future, as these professionals will be able to offer invaluable insight - based on their unique skillsets - in key business decisions.
- Data Shows Women Won't Invest In Crypto, So Try It Anyway - Swaay ›
- How We Boot-Strapped Our Way to a Multi-Million Dollar Business ... ›
It's the question on everyone's tongues. It's what motivates every conversation about whether or not Liz Warren is "electable," every bit of hand-wringing that a woman just "can't win this year," and every joke about menstrual cycles and nuclear missiles. Is America ready for a woman president?
It's a question that would be laughable if it wasn't indicative of deeper problems and wielded like a weapon against our ambitions. Whether thinly-veiled misogyny or not (I'm not going to issue a blanket condemnation of everybody who's ever asked), it certainly has the same effect: to tell us "someday, but not yet." It's cold comfort when "someday" never seems to come.
What are the arguments? That a woman can't win? That the country would reject her authority? That the troops would refuse to take her orders? That congress would neuter the office? Just the other day, The New York Times ran yet another in a long series of op-eds from every major newspaper in America addressing this question. However, this one made a fascinating point, referencing yet another article on the topic in The Atlantic (examining the question during Hillary Clinton's 2016 presidential bid), which cited a study by two Yale researchers who found that people were either the same or more likely to vote for a fictional male senator when told that he was ambitious; and yet, both men and women alike were less likely to vote for a woman when told that she was ambitious, even reacting with "feelings of moral outrage" including "contempt, anger, and disgust."
The question isn't whether a woman could be president, or whether a woman can be elected president – let's not forget that Hillary Clinton won three million more votes than the wildly unqualified man currently sitting in the oval office – it's whether or not it's appropriate for a woman to run for president, in a pre-conscious, visceral, gut-check way. In short, it's about misogyny. Not your neighbors' misogyny, that oft-cited imaginary scapegoat, but yours. Ours. Mine. The misogyny we've got embedded deeply in our brains from living in a society that doesn't value women, the overcoming of which is key for our own growth, well-being, and emotional health.
Why didn't we ever ask if America was ready for Trump?
That misogyny, too, is reinforced by every question asking people to validate a woman even seeking the position. Upfront, eo ipso, before considering anything of their merit or experience or thought, whether a woman should be president, that, if given the choice between a qualified woman and an unqualified man, the man wins (which, let's not forget, is what happened four years ago). To ask the question at all is to recognize the legitimacy of the difference in opinion, that this is a question about which reasonable people might disagree. In reality, it's a question that reason doesn't factor into at all. It's an emotional question provoking an emotional response: to whom belong the levers of power? It's also one we seem eager to dodge.
"Sure, I'd vote for a woman, but I don't think my neighbor would. I'd vote for a woman, but will South Carolina? Or Nebraska? Or the Dakotas?" At worst, it's a way to sort through the cognitive dissonance the question provokes in us – it's an obviously remarkable idea, seeing as we've never had a woman president – and at best, it's sincere surrender to our lesser angels, allowing misogyny to win by default. It starts with the assumption that a woman can't be president, and therefore we shouldn't nominate one, because she can't win. It's a utilitarian argument for excluding half of the country's population from eligibility for its highest office not even by virtue of some essential deficiency, but in submission to the will of a presumed minority of voters before a single vote has ever been cast. I don't know what else to call that but misogyny by other means.
We can, and must, do better than that. We can't call a woman's viability into question solely because she's a woman. To do so isn't to "think strategically," but to give ground before the race even starts. It's to hobble a candidate. It's to make sure voters see her, first and foremost, as a gendered object instead of a potential leader. I have immense respect for the refusal of women like Hillary Clinton, Kamala Harris, Elizabeth Warren, Amy Klobuchar, and pioneers like Carol Mosley-Braun, going as far back as Victoria Woodhull, to accede to this narrative and stick to their arguments over the course of their respective campaigns, regardless of any policy differences with them. It's by women standing up and forcing the world to see us as people that we push through, not by letting them tell us where they think we belong.
One of the themes I come back to over and over again in my writing is women asserting independence from control and dignity in our lives. It's the dominant note in feminist writing going back decades, that plea for recognition not only of our political and civil rights, but our existence as moral agents as capable as any man in the same position, as deserving of respect, as deserving of being heard and taking our shot. What then do we make of the question "is America ready for a woman president?" Is America ready? Perhaps not. But perhaps "ready" isn't something that exists. Perhaps, in the truest fashion of human politics, it's impossible until it, suddenly, isn't, and thereafter seems inevitable.
I think, for example, of the powerful witness Barack Obama brought to the office of president, not simply by occupying it but by trying to be a voice speaking to America's cruel and racist history and its ongoing effects. By extension, then, I think there is very real, radical benefit to electing a chief executive who has herself been subject to patriarchal control in the way only women (and those who others identify as women) can experience.
I look at reproductive rights like abortion and birth control, and that is what I see: patriarchal control over bodies, something no single president has ever experienced. I think about wage equality; no US president has ever been penalized for their sex in their ability to provide for themselves and their families. I look at climate change, and I remember that wealth and power are inextricably bound to privilege, and that the rapacious hunger to extract value from the earth maps onto the exploitation women have been subject to for millennia.
That's the challenge of our day. We've watched, over the last decade, the radicalized right go from the fringes of ridicule to the halls of power. We've watched them spit at the truth and invent their own reality. All while some of our best leaders were told to wait their turn. Why, then, all this question of whether we're ready for something far simpler?
Why didn't we ever ask if America was ready for Trump?