Top 5 Money Tips For Startups {that are not what you think}

 

You are terrified of living on baked beans and toast, making a new home in the park across the road from your now sweet inner- city abode or worse, moving in with your parents who want to discuss everything you eat and do, every moment of every day {oh please no}.

 

Maybe you don’t have these luxuries, maybe you really feel like you are on the path alone and don’t have a PLAN B, or a family to help when the times are tough. Maybe you have kids, a mortgage, cars to pay off, or elderly parents to look after.

 

So HOW then, can you make the numbers work in your favour to make the BIG LEAP from your office gig to your big dream? Is there a path that is safer when it comes to the crunch?

 

We caught up with Mr David Hodge, OC Maverick, Founder of Vital Addition and serial entrepreneur, who not only knows about business finance, but has spent many years trying and testing all his theories in his own businesses across a range of industries, in every kind of economic climate. He says he has made every mistake, more than once, he believes in learning from every person you meet and that nothing can replace experience in teaching us the real value of what business is all about – investing in people.

 

1. What are the magic numbers we need to press the “eject” button on our 9-5?

Its not about the numbers, its about mentality. This is different for everyone. What is your baseline? Rent, food, basics – what does that look like for you? Can you borrow money from someone to survive for a little while? Lose the mantra that you have to replace your current income. Business is about passion. You have to have it to survive. Always question all the advice you get on your finances, ask why something doesn’t look right. Don’t be afraid to ask questions and learn from the answers you get. Whether your business will work and if your numbers make sense, are two different questions. Think about it.

 

 

2. How do we manage financial risk, in our heads? IE. Look financial fear right in the face?

The secret is this; you literally CAN NOT FAIL. Why? Because if you give your idea a chance and it doesn’t go the way you want, you can always go back to what you did before. You can try, you can change your mind and you can get a job again. Its simple.

You have to trust yourself. If you are passionate about what you do and you can communicate that, people believe in that, they believe in you. Passion for your business is the most attractive quality you can have in selling what you do.

 

 

3. Should we work our side hustle for a few years, BEFORE we decide to jump? Will that ensure financial success?

If you have a side business, it will stay a side business. If you are not 100% committed to it, then it will be very hard to make it work. The right time to start a business is always now. If you try to find a perfect time, you will never do it. Don’t wait until your business gets to a certain size, it is never as long as you think before you start making enough money to survive.

 

 

4. What are the biggest mistakes that either you have made or seen made when it comes to startup finances? AND how can we avoid them?

Number 1 = not starting in the first place.

Number 2 = Not properly documenting what your business is. Can you explain it in words, written down? It is important you write it down as it allows you to see what makes sense, what doesn’t and what you need to work on.

 

 

5. Final advice about getting in to business and staying there?

 

You are a leader. As soon as you start a business. You are leading the way. Have the humility to say you don’t have all the answers. Nice guys finish last, is a total lie. Always, always be a decent human first. Its OK to sleep, you need it, its healthy and your health is everything. Finally – you are not, “getting there.” Where is, “there?” There is no destination in life and business.

 

All you have to do is the next, right thing, whatever that is.