{"id":17543,"date":"2023-03-07T12:07:58","date_gmt":"2023-03-07T12:07:58","guid":{"rendered":"https:\/\/gtechbooster.com\/?p=17543"},"modified":"2023-04-15T10:17:17","modified_gmt":"2023-04-15T10:17:17","slug":"practicals-of-lean-startup","status":"publish","type":"post","link":"https:\/\/gtechbooster.com\/practicals-of-lean-startup\/","title":{"rendered":"Keys on managing operating and funding your Startup Lean"},"content":{"rendered":"\n

I am hoping to help others find a practical and real-world application of working \u201clean\u201d. Lean is a fancy way of saying \u201cbarebones or its-absolutely-necessary\u201d. There aren\u2019t any specific formulae but rather the methodology of simply keeping your business operations, costs and budgets to as minimum as possible. <\/p>\n\n\n\n

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The methodology forces a business owner to go the extra mile when sourcing for any type of service or product necessary for their venture. So, for every aspect of the business, be it communications, marketing, advertisements, face to face meetings, and so forth, the lean operator must go the extra step to keep to a bare minimum cost.<\/p>\n\n\n\n

The lean operator methodology <\/h2>\n\n\n\n

To elucidate a bit on this, let us take one aspect of most businesses which \u201ceats up\u201d a significant percentage of the budget. Communications, and in particular, telecommunications, that can skyrocket and cause severe damage to a company\u2019s bottom-line.<\/p>\n\n\n\n

Applying a lean methodology to telecommunications begins with a quick and dirty \u201cwrite-up\u201d of what your needs are. You would be surprised how many entrepreneurs fail at this most basic step. Do not worry, I failed this step too. I was busy \u201clooking\u201d at what other successful businesses were doing and chose solutions that were not practical and costly to operate.<\/p>\n\n\n\n

Do not assume that all businesses require a fax, internet, mobile telephony, landlines, SMS and other diverse means for telecommunication.<\/p>\n\n\n\n

When you have scribbled down what you truly need for your business, you then get down to researching the most cost-effective ways by which your customers can contact you. Think of the long-term and weigh the consequences of using such a communication medium. Happily, today\u2019s telecommunications landscape is ripe with a plethora of solutions.<\/p>\n\n\n\n

You must prioritise<\/h2>\n\n\n\n

An internet capable smartphone with email and several apps (WhatsApp, BBM, Signal, Telegram, and Skype) can save the entrepreneur a lot of money. But, do not also be fooled by the many offerings of the mobile service providers. Be \u201csober\u201d and mindful of the trappings of data costs because of those annual contracts. And, hold the principle that NO telecommunications provider is LOYAL. <\/p>\n\n\n\n

They are in it for the money and so should you too. With these guidelines, entrepreneurs should go lean by selecting the most median, practical and cost-effective telecommunications provider without the \u201cdata and new smartphone trappings\u201d. The iPhone 6 will still serve you well and will save you 50-80% on your device expenditure than when you decide to go with a \u201cfancy\u201d iPhone X which costs upwards of $1000. One day, when your business is flourishing you can pick up two iPhones but for a lean entrepreneur, stick to the practical.<\/p>\n\n\n\n

As an example, I use a Blackberry Priv smartphone, purchased new and through an auction website. That saved me about 55% on the price of the device. After spending an entire weekend comparing sim-only deals, I got myself a 4G LTE, 250MB, 100min Sim-only service from a reputable service provider and pay less than $5 a month.<\/p>\n\n\n\n\n\n\n\n

The Money Management <\/h2>\n\n\n\n

A startup business is no easy feat and not for everyone to \u201ctry\u201d. It is reported from several sources (KPMG, PWC, EY\u2026) that about 90% of startups fail within 2 years and are forced to close shop. The core reason behind these failures is money management. To counteract this issue, it is highly recommended by experts that startups go lean. Going lean requires significant discipline in the form of \u201cdelayed gratification\u201d.<\/p>\n\n\n\n

Saving money on almost every aspect of your business is key to achieving success<\/strong> in the long run. Today\u2019s tip is helping you save on \u201cinternet data costs\u201d for conducting your daily work.<\/p>\n\n\n\n

Utilise the available bandwidth offered by popular eateries. The Netherlands, for example, has one of the best and densely distributed internet connections in the world. Buses have free wifi, trains have free wifi, and all the popular eateries like KFC, MacDonalds, Starbucks, and Dominos have free access to the internet.<\/p>\n\n\n\n

Using their free internet is awesome BUT there is a small catch here. It is important to \u201ctime\u201d your visit to such eateries because they are popular with teenagers who often \u201chog\u201d on the free internet. So, conduct your business activities when those eateries open and aren\u2019t that busy. It is also wise to purchase some sort of concessions such as a donut, drink or their cheapest offering. And for your own sake, stick to just one thing only<\/strong>. <\/p>\n\n\n\n

The hopping trick<\/h2>\n\n\n\n

You would be a paying customer<\/strong> who is utilising their electrical connection and free wifi. Also, plan your trips so that you spread out your visits. For example Monday (KFC), Tuesday (MacDonalds), Wednesday (Starbucks), Thursday (Train station), Friday (Dominos), Saturday & Sunday (Home). That\u2019s how you save on internet bandwidth as you start lean.<\/p>

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When going lean with your ideas and venture, there are several \u201cpotholes\u201d that you must avoid at all costs. Let the lessons I have encountered in my over 20 years of founding at least 17 businesses help you avoid it.<\/p>\n\n\n\n

My late dad always said to me, \u201cshare your failures\u201d. It\u2019s the main reason why I am writing these practical tips. Today, my tip for the would-be entrepreneur is how to fund your ideas<\/strong>.<\/p>\n\n\n\n

There is nothing more difficult in your pursuit than finding the money to pay for your entrepreneurial idea. Be prepared to suffer rejection after rejection. Be prepared for people who will laugh at your business plans and tell you how \u201cstupid\u201d your logo looks like, and how amateurish your pitch deck appears. <\/p>\n\n\n\n

For those of you taking this path of entrepreneurship, be prepared for this; as long as the sun shines, you will face it. Finding money for your startup falls into two baskets: 1) scrapping and 2) other\u2019s.<\/p>\n\n\n\n

Scrapping<\/strong><\/h3>\n\n\n\n

the tedious pursuit of finding money through personal ingenuity. It means listing everything and anything that you can sell off (old DVDs, CDs, electronics, shoes\u2026) on eBay, to raise the money. Scrapping also means \u201crenting\u201d yourself out to other businesses, as a freelancer. As a writer, I\u2019ve done 87 ghostwriting projects on subjects that aren\u2019t my favourite, but which helped my clients and put money in my pocket. <\/p>\n\n\n\n

From ebooks, articles, and novels, there is so many writing works out there. If you are great at drawing, there are equally vast amounts of design gigs all over the internet; logos, sketches, caricatures to web design. Are you good at math, then there are accounting and algorithm design gigs ready for you. <\/p>\n\n\n\n

There are even weird ones like anonymous shopping, where companies pay you $100 to shop and provide a report of your experience. There are several passive methods for scrapping and generating additional income. Scrapping brings in money at the slowest pace but it is free from the burdens of the alternative.<\/p>\n\n\n\n

Others<\/h3>\n\n\n\n

the means by which you can fund your startup. This is a cauldron of chaos and many times, insanely complex. Convincing other people to part with their money (angel investors) or other people\u2019s money (venture capital) is absolutely difficult. If this is your path, then be prepared for a \u201clot of time-wasting\u201d and \u201cweird customisations\u201d of business plans, pitch decks and a ton of costly \u201cnonsense\u201d with zero guarantees that you\u2019ll be funded. <\/p>\n\n\n\n

Taking other people\u2019s money also means giving up on several aspects of your ideas to accommodate theirs. It also means that decisions on how your idea comes to the world are decided by people whom you are only associating with simply because of money. There are also legal consequences for taking these monies: debt-buying, shared patents, shared owners, majority shareholding, management buyouts, exits and other binding arrangements that will test your sanity. <\/p>\n\n\n\n

If you fall prey to so-called \u201cvulture capital\u201d or attempt to play ball with a \u201chedge fund\u201d, your life will never be the same. One way to navigate this is to use the services of a reputable lawyer. Do not hire some \u201cbasic lawyer\u201d! Find yourself the meanest and ruthless lawyer<\/em> you can find. They know exactly how to work \u201cthe system\u201d. There is a somewhat third option called the SUBSIDES<\/strong>. This route is also not the most ideal. It involves a convoluted set of \u201cunattainable\u201d rules. <\/p>\n\n\n\n

After successfully raising money for several NGOs, I would like to point out that the subsidy route is the MOST difficult. It\u2019s been designed that way; luring you with the \u201cpossibility\u201d of funding, but the truth is that, you will literally have to write tens of thousands of proposals before succeeding with one. There is also a catch; all subsidies require transparency with the use of funds and a public declaration of funds. <\/p>\n\n\n\n

This will push any entrepreneur into the ugly confines of \u201clying\u201d about their proprietary product. Generally speaking, it would also be difficult to file patents with subsidies. You don\u2019t want to lie because\u2026 it will come back to bite you hard. <\/p>\n\n\n\n

Visit any of the EU subsidies and you\u2019ll be overwhelmed by the sheer number of requirements and documentation needed to access a couple or euros or dollars for your venture. Be prepared to pay a couple of 1000s for a professional service provider to help you navigate the waters of the subsidy environment; with no guarantees of getting the money.<\/p>\n\n\n\n

Remark<\/h2>\n\n\n\n

Managing, Operating and Funding your startup can be an awesome and rewarding experience. It will teach you valuable lessons about human interactions and money management. These possibilities should spur you on to successfully bringing your ideas to life. That\u2019s how you fund your startup, lean.<\/p>\n\n\n\n

More Information \u2139<\/h6>\n\n\n\n