Constructive Deconstruction

Bootstrapping – Spending in a Startup?

October 6, 2007 on 1:33 am | In Business | No Comments

Having getting myself involved in Widgeo.us, I’m now faced with the exciting task of juggling between setting a direction for the startup, strategizing how best to the project forward, structuring a plan that’s feasible for securing financing and, of course, managing the funds.

I’d like to just touch a little about managing the funds a seed stage startup receives. Short of releasing actual figures, startups rarely receive enough. In fact, it’s never enough. That said, one has to decide what to spend where…and then decide if that expenditure has to happen at all. Truth be told, sometimes there are alternative ways of receiving certain services at a fraction of the market costs…or in some cases receiving it free by leveraging on resources that are made available through ones network.
What are the questions that you should be asking yourself if you’re in this situation? I’ve done up a flowchart to map out my thought process…Perhaps it might be useful to those who want a starting point….I’m also open to your suggestions as to where my logic flaws are…