You are finally starting to see your fundraising efforts pay off. Now that you have secured the capital your startup needs, it is time to readjust your goals and figure out what you should do with your new money. Too many times early stage companies raise money and get sidetracked before taking the important next steps. Below are 5 tips you can take advantage of, so your startup makes the most of your newly raised capital.
1. Take some time to celebrate
Everyone knows how difficult and time-consuming fundraising can be. Reaching your goal and finally having some cash supporting your business is a reason to celebrate! Make sure to take some time with your team to celebrate and acknowledge the hard work that has brought your business to this point.
2. Continue with the hiring process
Once your business starts growing, it’s important to keep your foot on the gas. Starting the hiring process as soon as possible makes for a smoother transition as your startup continues to grow. The hiring process might take longer than you think as it typically takes at least one month to hire qualified non-technical hires and two months to hire technical hires. Having the right team ready to go when the funding hits the bank helps make your life easier and your business run more efficiently. Which brings us to tip #3…
3. Find the right place for your money
The money that you have spent days, months, and even years accumulating shouldn’t be just be parked into any bank account. Finding the right bank to hold your money while your startup gets off the ground is almost as important as raising the actual funds. Our Tailored Checking account is made specifically for small businesses, offering unlimited transactions, .10% APY on balances of $5,000 and up, free ATMs worldwide and 24/7 online and mobile banking.1,2
4. Spend your money wisely
As your business continues to grow, it might be tempting to start spending some of your money on “nice to haves”. However, no matter how promising your startup might seem at the moment, the beginning stages should be dedicated to investing back into the growth of your business. This means less spending on the non-essentials. Remember, your employees don’t need the best desks and the newest computers, as long as everyone is still able to complete their work and hitting their metrics, hold off on the ping pong table and catered lunches as long as possible. After all, Jeff Bezos’ first desk at Amazon was a recycled door.
5. Plan for your next board meeting
Next up is a board meeting with your executive team and the investors that provided the funding for your last round of capital. Having a plan for the next year and knowing what you are going to spend your money on is important to outline. Your new investors will want to review the company’s goals and discuss a realistic plan of action that will help give them the continued confidence in their investment. Use this meeting as an opportunity to set your business up for success going into the rest of the year and beyond.
1 Annual Percentage Yield (APY) is accurate as of 11/30/2021. Minimum amount to open account is $100.00. Rate tiers are as follows: 0.00% APY applies to balances of $0.01–$4,999.99, and 0.10% APY applies to the entire balance on balances of $5,000 or more. Rates may change after account is opened. Fees may reduce earnings.
2 Get unlimited automatic ATM surcharge rebates for ATM fees other banks charge you. ATM surcharge rebates apply to cash withdrawals from a Tailored Checking account using the LendingClub Bank business debit card wherever it is accepted. LendingClub Bank, N.A. does not charge a fee for using another bank’s ATM. ATM fees will be rebated at the end of each statement cycle. Excludes international exchange fees. LendingClub Bank, N.A. makes its best effort to identify those ATM fees eligible for rebate. In the event that you have not received a rebate for a fee you believe is eligible, please contact Customer Service at 800.242.0272. LendingClub Bank, N.A. reserves the right to modify or discontinue the ATM surcharge rebate program at any time.