The idea behind this post is to give you examples of things you should invest your money in when starting a business. In addition, I will also give you 5 things you shouldn’t spend too much money own. I consider them as a bad investment at the beginning of a business.
This can be anything that helps you get your idea to market quickly & grow your customer base. Examples are:
- Basic URL and web site
- World class people, either full time or contractors
- Surveys, interviews, and prototypes to get closer to understanding whether the market wants your product/service
- Marketing that brings in interested customers and is testable (like Facebook, Google, Twitter)
- Legal counsel (expensive but worth it)- See if you can get discounts
Not so good investments:
Most other things that you can avoid, penny pinch on, or defer. Common examples are:
- Overhead like rent (work out of your house), furniture, expensive computers, travel (unless it’s to see prospective customers)
- Expensive logos
- Market research studies/reports
- Accountants (your numbers are simple, use Quickbooks or WaveApp)
The bottom line here is that you should be smart with your money. You should only invest in things that will increase your revenue and current sales.